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If confirmed, this change would be the latest in a series of policy climbdowns by the Starmer government
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In recent months, Labour has also scaled back proposals on farm taxation, welfare spending cuts and reductions in energy bill subsidies for the elderly, highlighting the challenges of balancing reform with public confidence
Britain is set to abandon plans to make digital identity documents compulsory for all workers, marking another policy reversal for the Labour government led by Prime Minister Keir Starmer. Reports by major British media outlets suggest the proposed requirement will now be made optional rather than mandatory.
The digital ID plan was announced in September last year as part of a wider effort to tackle illegal migration and strengthen right-to-work checks. Under the proposal, every employee would have been required to hold a digital identity on their mobile phone, which employers would need to verify before making a hire.
The move was also seen as a political response to rising pressure from the populist Reform UK party
However, the proposal faced criticism from across the political spectrum. Critics argued that forcing workers to carry digital IDs would do little to curb illegal migration, while civil liberties groups warned that mandatory digital identification could infringe on personal freedoms and privacy. Concerns were also raised about public acceptance and trust in a system that would affect millions of workers.
According to reports, the government has now decided that when digital IDs are introduced in 2029, they will be optional. Existing forms of identification, such as passports and electronic visas, will continue to be accepted for employment checks. The decision reflects fears that making the system compulsory could undermine confidence in the wider digital identity programme.
Despite this shift, the government insists it remains committed to strengthening digital right-to-work checks. A spokesperson said the current system relies heavily on paper-based processes, which are inconsistent and vulnerable to fraud, with little evidence of whether checks are properly carried out. A full public consultation on the digital ID scheme is expected to begin shortly.
