The new government says it will shift public resources toward everyday priorities and local economic growth, moving away from costly national programmes.
Labour had originally proposed a digital identification system, which Sir Keir announced ahead of the party’s conference last year.
Starmer argued that a compulsory digital ID for workers would help curb illegal employment and modernise state services.
Beyond immigration control, the scheme was promoted as a way for citizens to verify their identity quickly and access essential services without searching for utility bills.
The Office for Budget Responsibility projected a £1.8 billion cost over three years in November, a figure Downing Street contested.
Following a petition signed by almost three million people in January, the government reversed course. The compulsory element was removed and the scheme was reframed as voluntary, promising a future ‘one‑stop’ app for tasks ranging from childcare management to tax filing.
Home Affairs Committee Chair Dame Karen Bradley later said the government’s intention was sound but its execution was a fiasco, warning the rollout could be seen as government overreach. In a committee report she described the policy’s launch as ‘nothing short of a fiasco’ and said it raised concerns about intrusion into citizens’ lives.
Andy Burnham will be installed as prime minister following his meeting with King Charles III on Monday. His office indicated that addressing immediate public needs will be a top priority, stating that abolishing the digital ID plan will free up allocated funds for everyday priorities.
Shadow Technology Secretary Julia Lopez of the Conservatives claimed Burnham was ‘pretending to ride to the rescue’ after Labour had already ‘wasted millions’ on the project. She questioned whether Burnham’s pledge was new or merely a claim of credit for a decision already made, asking him to clarify the situation.
Liberal Democrat MP Lisa Smart welcomed the reversal, saying citizens would be ‘hugely relieved’ not to be forced to surrender personal data for routine activities. She added that the money previously allocated for the digital ID scheme was a ‘huge waste of taxpayers’ money’ and praised Burnham for recognising the issue.
Burnham’s move on digital ID coincides with his intention to announce new North Sea oil and gas drilling plans after taking office. Labour’s 2024 manifesto, which Burnham says he will follow, promised not to issue fresh licences while maintaining existing ones. The incoming prime minister is expected to honour that commitment, possibly accelerating development of the many dormant North Sea licences acquired in recent years.
Meanwhile, Conservative leader Kemi Badenoch, in a Sunday interview with Laura Kuenssberg, dismissed Burnham’s proposals as ‘airy‑fairy’. She argued that Burnham appears out of touch with the nation’s pressing concerns and emphasised the need for a leader who can make tough decisions.