Here’s a breakdown of what the UK is planning for digital ID, what stage it’s at, and why this is happening now. 

What is the UK planning

The UK government has announced a scheme to introduce a mandatory digital identity system (sometimes referred to in the media as a “digital ID card”) for certain uses, combined with a “digital wallet” app.

Here are the key features as currently described:

Right to Work checks: The digital ID will be mandatory for proving your right to work in the UK by the end of the current Parliament. Employers will need to verify people’s status this way.

Who is eligible/useable: UK citizens and legal residents. It will include information like name, date of birth, nationality or residency status, and a photograph. Biometric verification will be involved.

Storage/practicalities: It will live on people’s phones (“digital wallet”, likely via the GOV.UK Wallet / GOV.UK app). Physical documents will still be in use (or alternatives provided) especially for people who can’t use a smartphone.

Public services access: Over time, it’s meant to make accessing government services (driving licences, welfare, childcare, etc.) smoother by avoiding repeated identity checks and paper documentation.

Security / trust framework: The scheme will operate under a digital identity and attributes trust framework. There are ongoing consultations and legislation (such as the Data Use and Access Bill) intended to create legal underpinnings for digital identity verification services.

Why now? What is driving this

There are several connected pressures and motivations:

Illegal working and immigration control
One of the central stated goals is to reduce illegal employment by making it harder for people without legal status to obtain work. The government argues this will help reduce “pull factors” for people crossing into the UK irregularly.
Government Business

Modernising public services
Making ID verification simpler, digital, and more streamlined is part of broader efforts to reduce bureaucracy, cut down on fraud, improve efficiency, and bring services up to date with what many citizens already expect (digital banking, online identity verification, etc.).

Existing groundwork & technological readiness
The UK has already established significant parts of the building blocks:

The GOV.UK Wallet / GOV.UK digital documents plans (e.g. digital driving licences, veteran cards) are underway.

A “trust framework” for digital identity & attributes is being developed (via the Office for Digital Identities & Attributes).

Legislation like the Data (Use and Access) Bill, and proposed regulation to ensure providers of digital identity services meet required standards.

Public demand and digital norms
Increasing digitisation generally (people using mobile devices to store information, do banking, interact with government online) is changing expectations, so a digital identity system fits into that trend. Also, there’s a political imperative to show the government is acting on immigration and border control.

Comparisons with other countries / international standards
Other countries already have forms of digital ID / wallet systems, and international ideas about what digital identity should look like are evolving. The UK is likely under pressure to keep up if it wants cross-border digital identity recognition, interoperability, and trust.

What is still unclear or being debated

There are a number of open questions / concerns:

Mandatory vs voluntary: Although digital ID is set to be mandatory for certain checks (Right to Work), it’s not clear yet whether other uses will become mandatory, or whether physical documents will remain valid in all cases.

Privacy, security, data protection: How data will be stored, protected, whether there will be centralised databases, how biometric data is handled, risk of hacking, what happens if phones are lost or stolen.

Inclusion / equity: How people without smartphones or with limited digital literacy will be supported.

Regulatory and legal challenges: Tension with human rights, privacy laws; also possible political resistance (for example from Northern Ireland leaders concerned about the Good Friday Agreement) or civil liberties groups.

Implementation timeline & costs: Exactly how quickly this will roll out in full, and how much it will cost, isn’t fully defined as yet. Some parts (digital wallet, driving licence, veteran’s cards) are coming sooner; other parts later.

Why this matters / implications

For individuals: changes in how one proves identity, who can work legally, possibly more digital dependency.

For businesses / employers: new verification requirements.

For civil liberties / privacy: risk of data misuse, surveillance, exclusion of people without access to technology.

For government: potential gains in efficiency, fraud prevention, but risk of technical failures, public pushback.