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Next UK prime minister Andy Burnham drops digital ID scheme - Finance news and analysis from Global Banking & Finance Review
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Next UK prime minister Andy Burnham drops digital ID scheme

Published by Global Banking & Finance Review

Posted on July 18, 2026

2 min read

· Last updated: July 18, 2026

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Andy Burnham to Cancel UK's Controversial Digital ID Scheme on First Day

Burnham's Move to Scrap Digital ID Scheme

MANCHESTER, England, July 18 (Reuters) - Incoming British prime minister Andy Burnham will scrap the government's troubled plans for a digital ID scheme when he enters office on Monday, a spokesperson for the new Labour Party leader said.

Resources devoted to the scheme, deemed a "fiasco" by a cross-party committee of lawmakers, will be redirected to Burnham's priorities, the spokesperson said.

Political Context and Leadership Change

Burnham, elected leader of the governing Labour Party on Friday, becomes Britain's seventh prime minister in a decade on Monday, replacing the unpopular Keir Starmer.

The former Greater Manchester mayor has pledged to halt the rise of the populist Reform UK, the right-wing party that has led British opinion polls by a wide margin.

Background on the Digital ID Scheme

Starmer in September launched plans for every employee to hold a digital identity document — an attempt to tackle illegal migration and counter Reform UK.

After a public backlash, Starmer dropped the requirement that the ID be mandatory in January.

Resource Reallocation and Financial Impact

"All the time and resource that was going to be spent on a national ID scheme will go instead to where it's most needed, such as helping with the cost of living," Burnham's spokesperson said. 

In November, the Office for Budget Responsibility watchdog estimated the cost of the digital ID scheme at around £1.8 billion ($2.4 billion) between financial years 2026/27 and 2028/29.

Reactions from Opposition and Historical Context

"Labour have wasted millions of pounds on this project and now Andy Burnham is trying to pretend he's riding to the rescue," Julia Lopez, a lawmaker from the opposition Conservative Party, said.

Identity cards were abolished in the UK after World War Two, and Britons typically use documents such as passports and driving licences to prove their identity.

Additional Information

($1 = 0.7433 pounds)

(Reporting by Andy BruceEditing by Ros Russell)

Key Takeaways

  • Andy Burnham will cancel the troubled digital ID initiative upon taking office, citing competing priorities like cost‑of‑living support.
  • The digital ID scheme, introduced in September 2025, faced widespread backlash and was projected by the OBR to cost around £1.8 billion between 2026/27 and 2028/29, with no dedicated funding identified.
  • Burnham’s move signals a policy reset and attempts to shift focus from a divisive reform toward more urgent economic and social issues.

Frequently Asked Questions

Why is Andy Burnham scrapping the UK's digital ID scheme?
Andy Burnham is scrapping the digital ID scheme to redirect resources to higher priorities such as cost-of-living support.
What was the estimated cost of the UK digital ID scheme?
The Office for Budget Responsibility estimated the scheme would cost £1.8 billion between 2026/27 and 2028/29.
Who launched the digital ID plans in the UK?
Former prime minister Keir Starmer launched the digital ID plans to address concerns around illegal migration and counter right-wing opposition.
What documents do Britons currently use for identity verification?
Britons usually use passports and driving licences to prove their identity.
When does Andy Burnham become the UK's prime minister?
Andy Burnham becomes the UK's prime minister on Monday following his election as Labour Party leader.

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