UK advances digital wallet development after ID mandate scrap

The United Kingdom is making progress toward a digital wallet that can hold digitally verified credentials for all government services, according to several new updates from the Government Digital Services (GDS). This is despite U.K. Prime Minister Keir Starmer recently scrapping plans for a mandatory digital ID requirement for the right to work amid intense public and political backlash.

Secure and trustworthy plan

Earlier in January, the GDS published its ‘Cyber Action Plan,’ which outlined how the department intends to make digital access to public services secure, trustworthy, and resilient.

To achieve this, the plan identified four key strategic objectives where it can have “the greatest systemic impact on the current unacceptable level of cyber security and resilience risk faced by government.”

Specifically, using data sources across the government to better understand government-wide cyber risks; investing in improvements to remediate risks that cannot be addressed; improving responsiveness to fast-moving events; and transforming resilience capabilities—particularly in areas of significant risk, such as legacy systems—through high-quality central services and support.

As part of the Cyber Action Plan, the GDS later published an update on its online platform, GOV.UK One Login,’ which allows users to prove their identity and access certain government services online.

The update outlined how the government was ensuring that user data is kept secure and private. This included regular reviews by independent bodies to ensure high standards are maintained; strict security standards “similar to those used in the private sector,” to protect users’ data and privacy; compliance with U.K. data protection laws; and multiple lines of protection, such as monitoring for threats, controlling access to systems, and keeping detailed logs.

“By continually advancing these features, we ensure that people can use government services with the utmost confidence in both their security and convenience,” said the GDS, adding that it will “regularly review and update these measures to stay ahead of any new risks.”

This repeated emphasis—almost over-insistence—on the security and privacy of the government’s online platforms risks appearing like a case of ‘the lady doth protest too much.’ However, it makes more sense in the context of the U.K. government’s recent struggles with digital ID.

Digital ID U-turns

When it comes to streamlining access to government services, the GOV.UK One Login platform has arguably proven a resounding success, with the GDS noting that “over 13 million people have already used it to access more than 120 different services, making interactions with government simpler and more joined-up.”

Wanting to build on this digital progress, the U.K. government has been increasingly exploring the creation of a digital ID, sometimes referred to as the ‘BritCard.’

The ferocity of the backlash was such that by mid-January, he was forced to make an embarrassing U-turn on the policy, dropping plans for a single mandatory digital ID.

The change of heart was revealed by Chancellor Rachel Reeves, who clarified the government’s new position on the ID, saying: “You will need mandatory digital ID to be able to work in the U.K… Now the difference is whether that has to be one piece of ID, a digital ID card, or whether it could be an e-visa or an e-passport, and we’re pretty relaxed about what form that takes.”

The substantial opposition that led to this ID backpaddle—from the British public, opposition leaders in Parliament, and liberty advocacy groups—centered on cybersecurity, fraud, and, in particular, privacy.

It’s almost certainly for this reason that the GDS is now at pains to address such concerns in relation to the GOV.UK One Login, as well as its work-in-progress digital wallet, the latter of which was the subject of the department’s most recent update blog.

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Making the UK digital wallet a reality

On January 21, the GDS published its progress update on the U.K.’s digital wallet program, launched a year ago, after the Government’s ambitious ‘Blueprint for modern digital government’ named it one of five “kickstarter initiatives.”

Since then, the GDS has been working on designing, building, and implementing a wallet to store government-issued credentials digitally within the GOV.UK One Login app.

“As well as holding verifiable digital credentials, the wallet will provide a more personalised user experience and access to next-generation public services,” said the department. “Over the past 12 months, GDS has been working hard to make the UK government’s first digital wallet a reality.”

The update outlined several landmarks that had already been achieved on this road to bringing the project to life. First and foremost, the GDS said it had built a digital wallet in the GOV.UK One Login app which can store certain government credentials. This system has already been tested, as it was used to deliver the ‘digital Veteran Card,’ with more than 15,000 veterans successfully adding their card to their GOV.UK One Login app.

Building on this, the GDS said it had also developed a set of credential patterns, guidelines, and style components for use by other government departments in the future. For example, it began private testing of a ‘digital driving licence’ on GOV.UK One Login app, in partnership with the Driver and Vehicle Licensing Agency (DVLA).

Beyond its achievements, the GDS was keen to note its “close working” relationship with the private sector on the project.

“Our relationships with the private sector are crucial for the roll-out’s next stage, and for enhancing in-person checks and enabling people to share their new digital credentials in day to day situations,” said the update. “We will continue to work closely and regularly with the technology industry throughout 2026.”

In terms of specific sectors, the GDS singled out the Digital Verification Service (DVS) industry, which it said was “crucial to enabling programmatic checks.”

Unlike physical credentials, the security features of digital credentials aren’t visible to the naked eye. Therefore, programmatic checking allows whoever is doing the ID check to access these, with a user’s consent.

“This means reduced fraud, fewer fake credentials, and greater confidence in everyday interactions with your credential, whether it’s in a shop or online,” explained the GDS.

Going forward, the GDS stated that “now that we’ve built the foundations for the wallet and introduced our first credentials,” the next phase of the roll out will be to enable programmatic verification.

It added that “our efforts continue, so we can support the Blueprint’s ambition that all government services can issue a digitally verified credential alongside any paper/card-based credential or proof of entitlement eligibility.”

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Watch: Why using transparent ledger for digital identity ensures trust