Government-backed ‘digital IDs’ to let people open bank accounts

( The Times )

People will be able to prove their identity for everything from paying tax to opening a bank account using a government-backed “digital ID”, ministers have promised.

A “trust mark” for approved verification products will be created under a data bill that will make it easier for people to prove their identity as ministers seek alternatives to ID cards.

A “single sign-on” for all government services is also being accelerated to avoid the need for people to remember multiple passwords under a scheme that edges closer to a unique digital identity for citizens.

The government has ruled out ID cards and insists that it will never make digital ID mandatory for people after Sir Tony Blair called for everyone to be given a unique online identifier.

The former prime minister argued that digital IDs would help to deal with illegal immigration by giving people an easy way to prove they have the right to work in Britain, as well as making it easier for citizens to manage everything from their passport to medical appointments and qualifications.

However Peter Kyle, the science and technology secretary, wants to avoid arguments about civil liberties by focusing on more practical steps, which he argues will make it “much easier” for people to interact with government and commercial services.

There are currently 191 ways for people to set up online accounts with public services, with 44 different sign-in methods. Kyle wants to speed up efforts to unify these into a single sign-on alongside measures that would see the government assess and approve a growing range of commercial identity verification products.

The companies developing these products check people’s name, date of birth and address against a variety of databases as well as using AI to assess someone’s age. Under the Digital Information and Smart Data Bill promised in the King’s Speech, the government said it was committed to developing digital verification services and ensuring people could trust them.

Kyle said: “Digital identity services are already being used by millions of people to save them time. When people choose to use them, these services cut down admin and increase security making it much easier to open bank accounts, start jobs, rent flats and much more.

“Our legislation will make sure that people can fully trust these services. We will give certified services a trust mark so people can find the digital identity providers that are following our strict security and data processing rules.”

A public register of products that meet government standards will be published on gov.uk in an effort to encourage people to use services that ministers believe will make chores ranging from collecting parcels to proving your age in pubs simpler and more accurate. Private verification services are already being used by the Post Office and government agencies that carry out immigration and other checks.

Officials insist that people would still be able to use paper documents such as passports and utility bills to prove their identity, insisting that use of digital verification would not be compulsory.

However, privacy campaigners are calling for this right to be written into the bill to ensure that it does not become difficult for people to go about their everyday life without a digital ID.

Susannah Copson, of the campaign group Big Brother Watch, said: “The proposed ‘convenience’ of digital IDs becomes a problem when they become mandatory for basic functions. That could range from anything from accessing public services to buying alcohol. What matters is that people have a choice. The government should seize the opportunity in the new data bill to create a legal right for people to use non-digital ID to ensure that they stay an option.”

According to TechUK, an industry lobby group, the adoption and use of digital ID could provide an additional £800 million a year to the UK economy, with estimates that the global market will be worth £37 billion by 2027. The government has already started laying the foundations for digital ID in the UK, with three apps from Yoti, the Post Office and Lloyds Banking Group certified to prove age and identity.

The National Proof of Age Standards Scheme enables people to show that they are entitled to buy goods such as tobacco and lottery tickets, access age-related discounts on transport, watch restricted films and even get a tattoo. The Digital Identity and Attributes Trust Framework allows users to complete online right to work and right to rent forms, as well as DBS (Disclosure and Barring Service) checks using digital ID. The Home Office is currently consulting on whether digital ID should be used as proof of age when buying alcohol after a successful pilot.

Estonia is seen as a pioneer of the “single sign-on” for government services. Its citizens all have a state-issued digital ID, called e-ID, which people use to pay bills, vote online, sign contracts, shop and access health information. The scheme, which has existed for 20 years, is estimated to save Estonians five days a year when dealing with bureaucracy.