Government announce plans to put digital IDs on statutory footing

The Government said the Data (Use and Access) Bill, introduced in Parliament, will put digital IDs on a statutory footing.

Secretary of State for Science, Innovation and Technology, Peter Kyle MP, said:

“Digital identities could slash waiting times at bars and help avoid hold-ups at automated tills, allowing landlords to serve thirsty customers more quickly and easing frustrations for high street shoppers, with digital IDs set to drive economic growth that will ultimately put more money in people’s pockets as part of our Plan for Change. 

“Under the new system, people will be able to present secure digital identities as proof of age when buying alcohol, if they choose to. These digital identities, already provided by a host of companies, will have to be independently certified against government standards.”

New insight, published today, reveals that companies providing these services generated £2.05 billion in 2023/2024, and employed over 10,000 people – half of which were outside London.  

Productivity in the sector is also 42% higher than average levels across the economy, with each employee generating almost £80,000 of “gross value added” to the UK economy – with further support, such as these legal changes, expected to bolster this further. 

Existing measures proposed in the Data (Use and Access) Bill will support the sector to boost the UK economy by £4.3 billion over the next decade. 

When a digital identity is presented in person, a quick programmatic check – like scanning a QR code or using NFC, the technology behind contactless bank cards which people use every day – will ensure everything is seamless and hassle-free.

Landlords will be able to choose from a host of digital verification service providers to help them check ages securely and quickly, with over 50 such companies already independently certified against the UK Digital Identity and Attributes Trust Framework.

A recent consultation revealed support for updating the Licensing Act 2003 to allow digital identities to be used for alcohol sales. Respondents also endorsed the idea that providers of digital identity services should meet stringent government-approved standards under the framework.

To ensure stronger oversight, the Data (Use and Access) Bill, introduced in Parliament this year, seeks to place the framework on a statutory footing. Once passed, the Bill will pave the way for certified digital identities to be added to the list of accepted age verification methods, alongside traditional forms like passports and driver’s licenses.

Kate Nicholls, Chief Executive of UK Hospitality and Institute of Licensing National Chair, said:

“Digital ID can make life easier for both consumers and businesses, and we’re pleased to be supporting its introduction.

“There are fewer things more frustrating than realising you’ve forgotten your ID when heading to a pub, bar or restaurant, and hopefully these new measures will make that a thing of the past. I look forward to working with the government on its smooth implementation, which minimises additional costs for businesses.”