A report from the National Audit Office warns that the UK government still faces hurdles to modernise digital access to public services, after its digital identity plans were scrapped in July 2026.
The “Lessons Learned” report, released by the UK’s independent public spending watchdog, states that while the government has halted its centralised digital ID proposal, the underlying problem has not vanished. Questions remain over how citizens can securely and conveniently prove their identity and access essential public services in an ever online world.
According to the NAO, the challenge is not just creating a single digital login, but untangling decades of fragmented government systems. Public services currently rely on isolated identifiers, for example National Insurance numbers, Unique Taxpayer References, and NHS numbers, stored across legacy systems with varying data quality standards.
“Establishing a trusted digital identity to access multiple services is only part of the challenge,” the report notes. “Government also needs to link that identity to the correct record within each service.” Connecting these disparate records across departments remains a persistent technical and operational barrier.
The NAO observed that successful digital identity adoption globally depends on public trust and everyday utility rather than state mandates. Overseas governments are advancing toward phone-based digital wallets, reusable credentials, and cross-sector identity systems that span both public and private services.
For non-mandatory identity models to succeed, the report emphasises, citizens must find them practical and beneficial for daily use, supported by robust security and privacy protections.
Speaking on the launch of the report, Gareth Davies, head of the NAO, said that the issue remains pressing despite the recent policy reversal.
“Despite government’s recent announcement that it will not be going ahead with its digital identity plans, questions about how people can conveniently and securely prove who they are or something about themselves in a digital world remain relevant,” Davies said. “Experience from other countries suggests digital identity works best when people find it useful and want to use it in their everyday lives, together with effective security and privacy protections.”
