Andy Burnham Scraps Digital ID Plans for Cost of Living Focus

Published: July 19, 2026, 6:00 am

Andy Burnham will abandon plans for a government-issued digital ID for all British adults upon becoming prime minister on Monday. This decision, announced by Burnham's office, signifies a shift in focus towards addressing "the daily priorities facing people across the country," with a particular emphasis on the cost of living crisis.

The digital ID scheme had previously been watered down under Sir Keir Starmer, moving from mandatory proposals for workers to a voluntary system. Burnham's spokesperson stated that the time and resources previously allocated to the national ID scheme will now be redirected "to where it's most needed, such as helping with the cost of living." This reprioritization is intended to improve everyday life and strengthen local economies over national government initiatives.

The digital ID concept was initially introduced by Sir Keir Starmer before Labour's conference last year. At the time, Starmer argued that a mandatory digital ID for workers would aid in clamping down on illegal employment and modernize state services. He also suggested it would allow citizens to prove their identity more easily to access services, bypassing the need for multiple utility bills.

The Office for Budget Responsibility had estimated the program's cost at £1.8 billion over three years, a figure disputed by Downing Street. In January, following a parliamentary petition signed by nearly three million people opposing mandatory digital IDs, the government revised its approach. The compulsory aspect was dropped, and the scheme was relaunched as voluntary, with the aim of eventually enabling citizens to manage tasks like childcare and tax returns through a single app.

Dame Karen Bradley, Chair of the Home Affairs Committee, had previously commented that while the government was right to introduce digital IDs, its launch was mishandled. She described the attempts to outline the plans as "nothing short of a fiasco" that "raised fears of government over-reach into people's lives."

Burnham is scheduled to meet with King Charles III on Monday to formally take office. His office reiterated that "one of the first things this government will do is put its focus where people need it right now," with the scrapping of the digital ID scheme being a key part of redirecting resources towards immediate public needs.

Reacting to the announcement, Shadow technology secretary Julia Lopez of the Conservatives accused Burnham of attempting to claim credit for a decision already influenced by Conservative pressure. She questioned whether Labour had indeed "wasted millions of pounds on this project" and whether the mandatory aspect was already off the table due to prior Conservative actions.

Liberal Democrat MP Lisa Smart expressed relief that individuals would no longer be compelled to share their data for daily activities. She criticized the "obscene sums earmarked for digital ID" as a waste of taxpayers' money, welcoming Burnham's decision.

This development regarding digital IDs comes alongside news that Burnham plans to announce proposals for new oil and gas drilling in the North Sea after becoming prime minister. While details remain unclear, the incoming prime minister is expected to adhere to the Labour Party's 2024 manifesto, which pledged to honor existing oil and gas licences while not issuing new ones. This could involve accelerating development on already approved but undeveloped North Sea licences.

Conservative leader Kemi Badenoch, in an interview on Sunday with Laura Kuenssberg, characterized Burnham's government plans as "airy fairy." She suggested he was out of touch with the country's priorities and stressed the need for a leader prepared to "take tough decisions."

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Content: Collected | Source: BBC News