Government Outlines Next Steps for UK's Use of Digital Identity

Today, the UK Government has announced plans to enable the use of digital identity across the UK, with plans to update existing laws and a new set of guiding principles for policy development.

While this follows from government consultations in areas of consumer protection in the online space and the use of data in the economy more widely, further prompting came after it was revealed 2.6 million people made a claim for the Self-Employment Income Support Scheme online since its launch on 13 May 2020, with 1.4 million having no prior digital identity credentials and needing to pass through HMRC’s identity verification service.

following a call for evidence published by the Department for Digital, Culture, Media and Sport alongside the Cabinet Office, the government plans to update existing laws on identity checking to enable digital identity to be used as widely as possible.

It will consult on developing legislation for consumer protection relating to digital identity, specific rights for individuals, an ability to seek redress if something goes wrong, and set out where the responsibility for oversight should lie. It will also consult on the appropriate privacy and technical standards for administering and processing secure digital identities.

The six principles are:

1) Privacy - When personal data is accessed people will have confidence that there are measures in place to ensure their confidentiality and privacy; for instance, a supermarket checking a shopper’s age, a lawyer overseeing the sale of a house or someone applying to take out a loan.

2) Transparency - When an individual’s identity data is accessed when using digital identity products they must be able to understand by who, why and when; for example, being able to see how your bank uses your data through digital identity solutions.

3) Inclusivity - People who want or need a digital identity should be able to obtain one; for example, not having documentation such as a passport or driving licence should not be a barrier to not having a digital identity.

4) Interoperability - Setting technical and operating standards for use across the UK’s economy to enable international and domestic interoperability.

5) Proportionality - User needs and other considerations such as privacy and security will be balanced so digital identity can be used with confidence across the economy.

6) Good governance - Digital identity standards will be linked to government policy and law. Any future regulation will be clear, coherent and align with the government’s wider strategic approach to digital regulation. For example, firms verifying your identity will need to comply with laws around how they access and store data.

John Mitchison, DMA Director of Policy and Compliance said:

“The proposals today are a positive further indication that the Government is committed to improving consumer rights in the digital and data sphere.

The use of digital identity online has the potential to improve customer experience while providing greater protections over identity and related details.

Naturally, these proposals are wrapped in issues of data protection, and we look forward to working with the government on ensuring privacy, transparency and trust are developed to the highest degree.”

Digital Infrastructure Minister Matt Warman said:

“Digital technology is helping us through the pandemic and continues to improve the way we live, work and access vital services.

“We want to make it easier for people to prove their identity securely online so transactions can become even quicker - it has the potential to add billions to our economy.

“Today I’ve set out further detail on our proposals and I look forward to working with partners in the private sector to unlock the UK’s digital identity economy.”

The Government's press release can be found here.