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Burnham shelves digital ID scheme in cost-of-living push

Prime minister-designate drops £1.8bn scheme as allies signal shift to household priorities

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Leader of the Labour Party Andy Burnham takes a selfie on Gravesend Town Pier, as he makes his first official visit as leader on July 17, 2026 in Gravesend, England.

(Photo by Dan Kitwood/Getty Images)

Highlights

  • The digital ID programme was estimated to cost about £1.8 billion between 2026/27 and 2028/29.
  • Deputy Labour leader Lucy Powell said the decision was part of a broader reprioritisation of government resources.
  • Powell said Burnham would maintain Labour's policy of honouring existing North Sea oil and gas licences while ruling out new ones.

ANDY BURNHAM will scrap government plans for a digital ID scheme when he takes office, signalling his intention to focus resources on kitchen table issues such as the cost of living, his allies said.


Dubbed the 'King of the North' for his work as the mayor of Greater Manchester in northwestern England, Burnham will replace Keir Starmer as prime minister on Monday (20), when he says he will also unveil his cabinet team of top ministers.

Burnham's office said one of the first things he would do was ditch a plan for all employees to hold a digital identity document, a scheme designed to tackle illegal migration but deemed to be a "fiasco" by a cross-party committee of lawmakers.

Starmer dropped the requirement for the ID to be mandatory in January after criticism.

"All the time and resource that was going to be spent on a national ID scheme will go instead to where it's most needed, such as helping with the cost of living," Burnham's spokesperson said in a statement.

Identity cards were abolished in the UK after World War Two, and Britons typically use documents such as passports and driving licences to prove their identity.

Massive cost

In November, Britain's Office for Budget Responsibility estimated the cost of the digital ID scheme at around £1.8 billion between financial years 2026/27 and 2028/29.

"Labour have wasted millions of pounds on this project and now Andy Burnham is trying to pretend he's riding to the rescue," said Julia Lopez, a lawmaker from the opposition Conservative Party.

Lucy Powell, deputy leader of the Labour Party and a Burnham ally, said while the savings from scrapping the scheme might not be large, the move was "one small example of reprioritising".

"This is an opportunity to reset, to refresh, to look at those things that are perhaps not just taking resource but are taking attention away from government priorities," she told the BBC's Sunday with Laura Kuenssberg programme.

In interviews with both the BBC and Sky News, Powell would not be drawn on other policies or details of Burnham's cabinet team, but said he would stick to the previous government's commitment on new oil and gas drilling in the North Sea.

The Labour Party's 2024 manifesto pledged to issue no new licences but to honour existing ones, such as two oil and gas fields in Scotland - Rosebank and Jackdaw - which regulators approved but were overturned in 2025 after a legal challenge.

She also said the government has powers to put struggling water companies, such as Thames Water, into "special measures". Let's see if the government does so," she told Sky News.

(Reuters)

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