The digital identity sector is urging the government to adjust its upcoming data legislation and rethink the policies surrounding the Gov.uk Wallet, which Peter Kyle, the technology secretary, highlighted in his digital strategy.
In an open letter to Kyle, a coalition of organizations that supply online safety and age verification technology expressed their concerns about the government’s plans. They highlighted that the announcement of the digital wallet, set to launch in January, sent shockwaves through their industry. The Association of Digital Verification Professionals, the Age Verification Providers Association, and the Online Safety Tech Industry Association pointed out that allowing the Gov.uk Wallet to be used for commercial purposes—like verifying age for buying restricted items—raises serious issues.
The letter stated that this decision has created uncertainty among suppliers and investors. The groups are particularly worried about the potential for a government monopoly on digital identity, which could stifle innovation, reduce consumer choices, and lead to substantial costs for taxpayers for services the private sector already provides.
A recent study from Juniper Research backs up these concerns. It predicts that the number of people using digital identity apps in the UK will grow by 267% annually, reaching 25 million by 2029. The report suggests that over 45% of UK adults will adopt the government’s app, while private providers will see only a 9% increase during the same period.
The Data (Use and Access) Bill, currently in Parliament, aims to facilitate the broader use of digital identity tools backed by government data. The organizations behind the open letter are requesting amendments to prevent issues stemming from exclusive access or unfair pricing subsidized by the state.
They specifically propose that:
– The Gov.uk Wallet and the One Login tool should be restricted to public service authentication to avoid competition with private sector options.
– Digital identity software compliant with the government’s trust framework should be allowed for public service authentication, rather than granting monopoly access to One Login.
– Government-issued credentials, like the digital driving license, should be usable in any certified wallet, not just the government’s.
To foster better cooperation, the industry groups have suggested creating a technical working group that includes both government officials and certified identity providers. They argue that enshrining principles of equality, portability, and interoperability in the Data (Use and Access) Bill would help reassure investors.
Concerns have been mounting since Computer Weekly reported on this issue, highlighting the unease among digital ID suppliers about the government’s plans to enter their market. Iain Corby, executive director of the Age Verification Providers Association, emphasized that clear collaboration is crucial to dispel fears that the government aims to create a national digital identity scheme. He explained that the sudden announcement without prior consultation left many in the industry feeling as though digital identity was being nationalized, which could lead to public fears of a hidden national ID card.
Corby added that they felt compelled to act swiftly instead of waiting for a consultation meeting scheduled for next month, as there’s still a chance to amend the Data (Use and Access) Bill to ensure fair competition between governmental and private digital IDs.
A government spokesperson responded, stating that citizens have endured slow processes for too long. The Gov.uk Wallet promises to offer millions of Britons easy access to their government credentials, like driving licenses, right from their phones, saving them valuable time. The spokesperson assured that the government would collaborate with the UK digital identity sector to create the best experience for users of this technology.