The government cancelled its national digital ID scheme, but infrastructure, pilots and legal changes show use cases and a competitive market are advancing. A coordinated long-term strategy is the missing element.
Cancellation of the national scheme did not stop practical rollouts: Gov.uk Wallet, One Login and the DVS trust framework remain active.
New secondary legislation allows digital proof of age for alcohol and a digital driving licence is in development for the Gov.uk Wallet.
A competitive market of trusted providers under the DVS, plus interoperability with private wallets, is the path to wider adoption — supported by a clear, industry-backed roadmap.
# What happened A few weeks before Max Elphick joined TechUK as head of digital identity, the prime minister announced cancellation of the UK's national digital identity scheme. That announcement grabbed headlines, but the practical work on digital identity in the UK has continued.
# Current state of the market The key building blocks remain in place and are advancing:
None of the technical or regulatory infrastructure has disappeared because of the policy reversal. Instead, adoption is being driven by a competitive market of providers operating under the DVS rules.
# Economic and practical potential Digital identity already contributes financially: the sector generates about £2bn a year. Wider adoption could add billions in economic value and enable cross-border interoperability for trade, travel and business using international standards.
The author also notes an emerging role for digital identity in verifying AI agents as their use grows across services.
# What's missing — policy and coordination To capture the full potential, government and industry should agree a long-term, coordinated strategy. Recommended elements include:
# The next steps
Max Elphick is head of digital identity at TechUK and wrote this view drawing on the present state of UK digital ID projects and policy developments.
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