Speaking to the House of Commons select committee this week, Digital Government and Data Minister Iain Murray defended the government’s decision not to publish the budget cost of its plans to create a digital ID for every citizen.
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In September, the government announced plans to issue a digital identity to all legal residents by August 2029, which is to be used to prove eligibility to work for the first time. Prime Minister Keir Starmer said the digital ID is “a huge opportunity for the UK.” As well as making it harder to work illegally, he said, they would also “provide countless benefits to ordinary citizens, such as being able to prove their identity to access key services faster”.
The plan is to build on existing work to use smartphones to store digital IDs and introduce government digital wallets, including driving licenses.
Appearing before the Science, Innovation and Technology Committee this week, Murray said the budget for the project had not yet been determined, although technical delivery would be managed by the Government Digital Service (GDS) within the Department of Science, Innovation and Technology (DSIT).
“In terms of cost [it is to] “This will be determined based on what the system looks like, and can only really be measured after the consultation has closed and the analysis has been done,” he said.
Murray said the initial cost would come from the DSIT settlement over the expenditure review period, although other departments would also be expected to contribute as use cases emerged.
“The cost of the entire system will depend on what the system looks like,” he said. “Digital inclusion, all the bits associated with digital ID, and use cases for other government departments in terms of both the cost of the system, the cost of running the system and the savings that come from having a more efficient system later on.”
Conservative MP and committee member Kit Malthouse questioned whether contributing departments would be able to protect that funding.
“We could be in a situation where the Home Secretary says, ‘Okay, you’re asking for £500 million for this thing that could make savings. But you know what? It’s £500 million. I have to take that from policing or border protection, so I don’t want your service. Thank you very much. Go and look elsewhere.’ Its delivery will depend on effectively interacting with departments,” he said.
Murray responded that the digital ID plan “is a priority for the Prime Minister, and so the GDS will build the system under Cabinet Office oversight and policy development in the context of digital ID.”
Meanwhile, the minister said her department has decided not to appoint another Chief Digital Officer (CDO) in place of outgoing Joanna Davinson, who was interim CDO from December 2024 to September 2025, a position she previously held on a permanent basis. The responsibilities will now become part of the role of the Permanent Secretary, the most senior civil servant in the department.
“Putting these issues at the permanent secretary level is a way to take an intergovernmental approach to this,” he said.
However, Committee Chair Chi Onwura questioned whether the Permanent Secretary would have the digital transformation experience required for the CDO role.
Murray also noted that the government’s “AI roadmap” had been delayed due to a change of technology minister in September.
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