Burnham Scraps Digital ID Plans to Prioritise Cost of Living Support

Andy Burnham is expected to abandon plans for a government-issued digital ID scheme for all UK adults as one of his first major policy decisions upon becoming Prime Minister. Instead, his administration says it will redirect resources toward tackling the cost of living and other issues affecting households across the country.

The announcement follows earlier signals that Burnham’s government intends to increase support for North Sea oil and gas production while shifting its focus to policies with more immediate economic benefits for the public.

Digital ID Plans Officially Dropped

The previous Labour government, led by Sir Keir Starmer, had already scaled back proposals for a mandatory digital identity system after facing widespread public criticism.

Originally, the scheme was designed to:

• Help tackle illegal working and immigration fraud.
• Allow citizens to verify their identity online.
• Simplify access to government services through a single digital platform.

However, Burnham’s team has now confirmed that the proposal will be abandoned entirely.

A spokesperson said the resources originally allocated to the project would instead be invested in areas that directly improve people’s daily lives, particularly measures aimed at easing the cost of living.

Why the Digital ID Scheme Was Controversial

The proposal attracted significant opposition from privacy campaigners and members of the public.

In January, nearly three million people signed a parliamentary petition opposing mandatory digital IDs, prompting the government to make the system voluntary instead.

Critics argued that the programme raised concerns about:

• Government overreach.
• Data privacy and security.
• Increased surveillance.
• The high cost of implementation.

The Office for Budget Responsibility previously estimated the programme would cost around £1.8 billion over three years, although Downing Street disputed that figure.

Burnham’s New Government Priorities

Burnham is expected to formally become Prime Minister after meeting King Charles III.

His office says the new administration will focus on policies that directly benefit households, including:

• Tackling the rising cost of living.
• Supporting local economies.
• Redirecting public spending toward frontline priorities.
• Delivering practical economic reforms rather than expensive national technology projects.

Deputy Labour leader Lucy Powell described the decision as both a financial and strategic shift, saying the government wants its attention and resources focused on improving everyday life for people across the UK.

Political Reaction

The decision has sparked mixed reactions across Westminster.

Conservatives argued that Labour had already spent millions developing the proposal and accused Burnham of claiming credit for changes that had effectively already been made.

Liberal Democrats welcomed the move, saying many people would be relieved that they would no longer be required to share personal data through a government digital identity system.

North Sea Oil and Gas Plans

The announcement also comes amid reports that Burnham intends to support increased oil and gas production in the North Sea.

While Labour’s 2024 manifesto pledged not to issue new exploration licences, it committed to honouring existing licences. Burnham is expected to continue that approach while encouraging development of approved projects that have yet to begin production.

Supporters argue the move could strengthen UK energy security and support jobs, while critics are expected to question its environmental impact.

What This Means

If implemented, abandoning the digital ID programme would mark one of the first significant policy changes under Burnham’s leadership.

Rather than investing in a nationwide digital identity system, the government says it will prioritise policies aimed at reducing financial pressures on households, supporting economic growth, and addressing the UK’s most pressing day-to-day challenges.

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