Published by Global Banking & Finance Review®
Posted on January 13, 2026
2 min readLast updated: January 19, 2026
The UK government has reversed its decision to make digital IDs mandatory for workers, following criticism and concerns over civil liberties.
LONDON, Jan 13 (Reuters) - Britain is set to drop plans to make it mandatory for workers to hold a digital identity document, The Times newspaper, the BBC and other media reported on Tuesday, potentially marking another policy U-turn for the Labour government.
Prime Minister Keir Starmer announced in September last year that his government would require every employee to hold a digital ID in an attempt to tackle illegal migration and reduce the threat from the populist Reform UK party.
The government said the digital ID would be held on people's mobile phones and become a mandatory part of checks employers must make when hiring staff.
The plan drew criticism from political opponents, with some arguing it would not deter illegal migration and others warning it could infringe on civil liberties.
The Times said the government abandoned the plan amid concerns it could undermine public trust in the scheme, noting that when introduced in 2029, digital IDs would be optional rather than mandatory.
Other forms of documentation, such as an electronic visa or passport, would still be valid, The Times said.
"We are committed to mandatory digital right to work checks," a government spokesperson said. "We have always been clear that details on the digital ID scheme will be set out following a full public consultation which will launch shortly."
The spokesperson said current checks rely on a "hodgepodge" of paper-based systems, with no record of whether they were ever carried out, leaving the process open to fraud and abuse.
If plans for a mandatory digital ID are dropped, it would mark another policy climbdown for Starmer.
In December, the government scaled back a plan to raise more tax from farmers, months after it backed down on cuts to welfare spending and scaled back a proposal to reduce subsidies on energy bills for the elderly.
(Reporting by Catarina Demony; Additional reporting by Elizabeth Piper; Editing by Daniel Wallis)
A digital ID is an electronic representation of a person's identity, typically used for online verification and authentication purposes.
Illegal migration refers to the movement of people into a country in violation of that country's immigration laws.
Employment checks are processes conducted by employers to verify the identity, background, and qualifications of potential employees.
Civil liberty refers to the personal freedoms and rights that are guaranteed to individuals, often protected by law.
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