In December 2024, DSIT released a festive video featuring Secretary of, Science, Innovation and Technology, Peter Kyle. This video announced planned changes to legislation that would enable the use of Digital ID for purchasing alcohol in pubs and the retail environment. Peter Kyle proudly showcased a Yoti digital ID and highlighted privacy preserving features promising that by Christmas 2025, everyone would have the ability to prove their age with ease.
At the time, things looked promising for digital ID providers. The government was poised to unlock a use case that has hindered the widespread adoption of digital IDs. Previously, many retailers had hesitated to establish clear acceptance policies for digital IDs or even engage with it due to restrictions around alcohol sales, which could lead to greater confusion at the point of sale, rather than deliver on the efficiencies promised. A government-backed push in this space appeared to be a step toward broader acceptance.
The digital ID market and government had already made significant investments in establishing the DIATF (Digital Identity and Attributes Trust Framework) to create a competitive and level playing field, with interoperability as a key principle. This framework seemed to offer a solid foundation for private-sector growth and innovation.
However, just a month later, in January 2025, another government announcement shifted the landscape. The government revealed that its GOV.UK Wallet would allow users to store a mobile (digital) version of their driving licence (mDL). The lack of clarity around the role and function of the GOV.UK Wallet positioned it as direct competition to the DIATF network. The concern is twofold: the GOV.UK Wallet carries the weight of becoming the de facto form of digital identity, and the uncertainty over whether these credentials will be shared with the private sector raises the risk that some DIATF certified providers may no longer have a viable market.
Unsurprisingly, this development raised concerns within the private digital identity market. The potential implications for the private sector are significant, with businesses and investors worried about their future in a market that may shrink dramatically.
As a keen observer of digital ID developments in the UK, Serve Legal’s Data Director, Matthew Houliston, attended the All-Party Parliamentary Group (APPG) on Digital Identities in Parliament to hear firsthand the private sector's concerns and the questions they are posing to the government. The packed room, stifling on one of the first warm days of spring, was a testament to the high level of interest and frustration felt across industry.
The discussion featured a range of panellists and contributors from different sectors, including age assurance, digital ID, financial institutions, and supporting bodies, with Baroness Uddin presiding over the event.
Financial Impact
Stifling User Choice
Government by Press Release/Transparency
Understanding Potential Use Cases and Risks
Government Track Record on Technology Projects
Serve Legal’s priority is to support our clients in complying with age verification requirements and testing the processes they implement, regardless of how digital ID evolves. We are committed to keeping you informed so that you can adapt swiftly to changes in the landscape. Whatever comes next, we are here to help you navigate.
To stay up to date on digital ID and age estimation, check out our latest articles or visit our Serve Legal Labs page to learn more about our dedicated audit services.
As one contributor noted, discussions around digital identity have been ongoing for over 25 years. It will be fascinating to see how this develops in the coming months and how the government chooses to move forward. With the number of unanswered questions and work the government has to do to implement the necessary changes, my gut is telling me that I won’t be using a digital ID at my 2025 Christmas party.