Keir Starmer Digital ID Cards: What the Policy Shift Means for Workers and Employers by 2029

The UK government has confirmed that digital identity cards will not be made compulsory for workers, marking a significant change to plans first outlined by Prime Minister Sir Keir Starmer last year. Instead, digital IDs will be introduced as an optional form of identification alongside existing documents such as passports and visas.

The revised approach forms part of the government's wider programme to modernise right-to-work checks, which will still become mandatory in digital form. Ministers say the system will be rolled out by the end of the current Parliament, with full implementation targeted for 2029.

The shift follows months of debate over privacy, civil liberties and digital exclusion, and has implications for both workers and employers as the government attempts to balance enforcement with public trust.

From Compulsory Cards to Optional Digital Identity

Starmer announced plans for a government-issued digital identity in September 2025, describing it as a way to simplify right-to-work checks and reduce illegal employment. Under the original proposal, workers would eventually have been required to hold a digital credential to prove eligibility.

That position has now changed. In January 2026, ministers confirmed that holding a digital ID would not be mandatory. Instead, individuals will be able to choose whether to use a digital ID, while employers will continue to accept traditional documents for verification.

The government has stressed that mandatory digital right-to-work checks will still go ahead, meaning employers must verify eligibility through approved digital systems. Officials have said this distinction allows enforcement to proceed without forcing all workers to adopt a single form of identification.

What The Changes Mean for Workers

For employees and jobseekers, the revised policy removes the immediate requirement to adopt new technology in order to work. Civil liberties groups had raised concerns that compulsory digital IDs could create barriers for people without smartphones or reliable internet access.

Digital IDs will remain available to UK citizens and residents with legal status, including those on visas or with settled status, according to The Financial Times. Supporters argue the system could make onboarding quicker, reduce document fraud and provide a single point of access for services.

However, opposition to compulsory IDs has been significant. A parliamentary petition calling for the plans to be scrapped attracted close to three million signatures, citing fears about data privacy and the potential expansion of digital identity into other areas of life.

Employers Face a Phased Transition

For employers, particularly smaller businesses, the decision removes the need to enforce digital ID cards across workforces. However, firms will still need to comply with mandatory digital right-to-work checks as these are phased in.

This means businesses may need to manage multiple verification routes, including passports, visas and approved digital systems. Employment law firms and HR advisers have said employers should begin reviewing compliance processes well ahead of 2029.

The government has pledged to consult publicly on how the revised framework will operate in practice. Details are expected later this year and will shape employer responsibilities across sectors including hospitality, retail and financial services.

Looking Ahead to 2029

The evolution of the digital ID policy reflects the political and practical challenges of reforming identity checks in a digital economy. While the revised plan eases immediate concerns for workers and employers, it leaves open questions about how widely digital IDs will be adopted in practice.

As consultations continue and timelines are refined, the government faces the task of delivering a system that improves enforcement while maintaining public confidence. With full implementation still several years away, digital identity is set to remain a live issue in debates over work, privacy and technology in the UK.