The UK government has announced plans to introduce a new digital verification system that has the potential to transform our interactions with digital services and data.

The proposed Digital Information and Smart Data Bill introduced in today’s King’s Speech outlines innovative data use and sharing methods to enhance the user experience in public services.

The government anticipates that three major data uses will drive innovation, investment, and productivity across the UK. These include digital verification services, a national underground asset register, and smart data schemes.

The first focuses on digital identity, aiming to reduce costs, time, and data breaches for businesses. Secure digital identities are estimated to bring £600 million per year to the UK economy, supporting products and services such as assistance with moving house, pre-employment checks, and purchasing age-restricted goods and services.

The new Labour Government has recognized that the UK’s digital identity infrastructure lags behind the European Union’s. The EU has recently passed laws to implement a secure and trustworthy digital wallet for all Europeans.

This digital wallet will allow citizens to link their national digital identities with other personal attributes, such as driving licenses, qualifications, and bank accounts.

Citizens will be able to prove their identity and share electronic documents from their digital wallets via their mobile phones. Users will have control over the information in their wallets, ensuring that only necessary information is shared.

By 2026, each member state will need to provide a digital identity wallet to its citizens and accept wallets from other member states in the spirit of interoperability.