The digital identity sector is calling on the government to amend its forthcoming data legislation and to change policy around use of the Gov.uk Wallet – which was technology secretary Peter Kyle’s flagship announcement as part of his new digital strategy.

In an open letter to Kyle, secretary of state for science, innovation and technology, a group representing suppliers of online safety and age verification technology said the launch in January of the government’s digital wallet “sent shockwaves through the sector”.

The Association of Digital Verification Professionals, the Age Verification Providers Association and the Online Safety Tech Industry Association outlined a number of concerns arising from Kyle’s plans to allow the Gov.uk Wallet to be used for commercial purposes, such as proving a shopper’s age when purchasing restricted goods like alcohol.

“The news has triggered widespread uncertainty among suppliers and investors,” said the groups in their letter.

“We are concerned about the inadvertent creation of a government monopoly in digital identity – one that could stifle innovation, limit consumer choice and impose billions of new costs on the taxpayer for functions the private sector currently provides, such as customer service and integration support.”

A recent independent study suggests the industry’s fears are well founded. A report from Juniper Research into the UK digital ID market predicted a 267% annual growth in the number of people using digital identity apps, reaching 25 million by 2029. Juniper forecasted that more than 45% of UK adults will use the government app – whereas private sector providers will see just 9% growth over the same period.

The Data (Use and Access) Bill, which is making its way through Parliament, includes legislation that will help to enable the widespread use of digital identity tools supported by government data. The signatories of the open letter want to see amendments to the bill that will avoid “distortions caused by exclusivity or unfair state-subsidised pricing”.

Specifically, they are calling for:

• The Gov.uk Wallet and the government’s One Login single-sign-on tool to be statutorily limited to authentication for public services, to avoid competing with private sector alternatives.  
• Digital identity software that is certified as compliant with the government’s trust framework to be accepted for authentication with public services, rather than One Login having a monopoly for online government access.
• Government-issued credentials such as the digital driving licence that Kyle announced alongside the Gov.uk Wallet should be allowed to be held in any certified wallet, not just the government’s own product.

The industry groups have proposed a joint technical working group to ensure collaboration between government and certified identity and wallet providers.

“Investors will be further reassured if these equality, portability and interoperability principles are enshrined in the Data (Use and Access) Bill,” they wrote.

Computer Weekly reported in February about significant concerns among digital ID suppliers and their investors about the government’s plans to compete against them for commercial uses.  

Iain Corby, executive director of the Age Verification Providers Association, said that better collaboration would also avoid accusations that the government is attempting to introduce a national digital identity scheme.

“This is not an area where government by press release is wise – the sudden and very public announcement, made without any consultation, gave many in the industry the impression that digital identity was being nationalised, and that could easily translate to the wider public as a threat of a national ID card by the back door,” he said. “If that happens, the benefits of digital ID will be lost for another decade.

“We have had to act now, rather than wait for a consultative meeting scheduled for next month after Computer Weekly first reported this story, because there is still time to amend the Data (Use and Access) Bill to guarantee equality and consumer choice between private and government-issued digital IDs.”

A government spokesperson said: “Citizens have dealt with sluggish processes for too long. Our Gov.uk Wallet will give millions of Britons access to all their existing government credentials – like their driving licence – from their phones and save them hours of wasted time. We will work with the UK digital identity sector to provide the best possible experience to people who choose to use digital identity technology.”

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