The Westminster eForum Policy conference convened to delve into digital identities in the UK. The conference comes at a pivotal moment, with the UK’s data economy representing 6.9 percent of GDP, according to insights shared by Baroness Neville-Rolfe DBE CMG, who was appointed Minister of State on 20 September 2022.
Following this, what was stressed was the significance of digital identities in reducing fraud, improving productivity, and fostering economic growth. Citing the Online Safety Act and the Data Use and Access Bill, the minister outlines legislative efforts to enhance governance and standards in digital verification services.
Key highlights included the importance of digital ID systems for small and medium enterprises (SMEs), which constitute over 99 percent of UK businesses. The minister emphasized the role of innovation in addressing challenges posed by rising costs and regulatory requirements.
A vision for trusted digital ecosystems
Yiannis Theodorou, senior advisor and global lead, digital identity at the Tony Blair Institute for global change introduced the concept of trusted wallets, secure digital platforms that could store credentials like passports, driving licenses, and health information. Theodorou emphasizes the potential of digital IDs to streamline public service delivery and foster trust between citizens and the state.
“Imagine a world where your identity is not a piece of paper or plastic but a secure digital ID key that unlocks hundreds of services seamlessly,” Theodorou states. He underscores the impact of digital IDs on economic growth and societal trust, advocating for robust government support to accelerate adoption.
Global trends shaping digital identity
Theodorou highlights that the pandemic has accelerated governments’ efforts to digitize public service delivery, aligning with citizens’ expectations for convenience. Wearables and other smart devices are generating vast amounts of personal data, which could be leveraged for preventive healthcare and other benefits.
Trusted digital ID systems could enhance the accuracy of AI tools by providing reliable data. As consumers and businesses seek authenticity, digital IDs could play a critical role in certifying qualifications and ethical sourcing.
Findings reveal the MyGovID framework in Ireland has proven to be a resounding success, delivering a positive return on investment in under five years and saving an estimated €206 million (roughly $216 million). Today, 80 percent of Ireland’s internet users rely on their electronic ID (EID) to access online services in both public and private sectors, with nearly 87 percent of these users utilizing MyGovID to engage with public services.
In Australia, the impact of the myID digital identity system has been equally transformative. With its multi-factor and biometric authentication capabilities, the system serves over 13 million users, enabling them to verify their identity for access to more than 150 government and private sector services. Recognizing the need for clarity, the Australian government rebranded the initiative to distinguish it from the myGov web portal, a move that aligns with evolving public understanding of digital identity systems.
Estonia continues to set the benchmark for digital identity adoption, with 99 percent of its citizens holding a digital ID. The technology saves the government approximately 2 percent of the nation’s GDP annually and has facilitated over 1.4 billion digital signatures to date, translating to individual time savings of five working days each year.
E-services have changed administrative tasks in the country: electronic voting saves 11,000 working days during elections, tax filings take an average of three minutes, and registering a new business requires just 15 minutes. Notably, the only government service unavailable online is obtaining an official divorce.
Singapore’s SingPass offers access to over 2,000 services from more than 700 government and private entities, allowing residents to pre-fill digital forms with government-sourced data. Similarly, Sweden’s digital BankID, issued by banks and recognized by the government, is used by nearly all adult citizens for identity authentication. It facilitates services such as booking medical appointments, accessing health records, and receiving prescriptions online. Over 5,000 entities in the public and private sectors use BankID, making it an integral part of daily life.
The opportunity for the UK
The UK stands at a critical juncture in exploring digital identity frameworks, with an opportunity to merge the EU’s privacy-centric digital wallet strategy with a private-sector-driven approach.
Research by the Tony Blair Institute estimates that the digital ID system could save the UK government at least £2 billion ($2.5 billion) annually through reduced benefit fraud, increased tax revenue, and improved targeting of support programs. Over the current electoral term, such a system could achieve cumulative savings of £4 ($5 billion) billion, with long-term productivity gains reaching £40 billion ($50.4 billion) per year by enabling AI-driven public services.
The general take-home from the conference is that biometric authentication and anti-spoofing measures are critical to securing digital IDs against emerging threats, including deepfakes. Additionally, interoperability with EU and other international systems will be essential for seamless integration.
Initiatives such as government-supported kiosks for digitally excluded individuals and training programs could also level up digital literacy, and regulatory sandboxes, like those in the EU’s digital ID wallet pilots, could help safeguard user trust.
Article Topics
biometrics | digital economy | digital ID | digital identity | government services | interoperability | Tony Blair Institute | UK
