Digital identity companies in the UK are urging lawmakers to include statutory provisions for interoperability and portability in the Data (Use and Access) Bill, arguing that the absence of such guarantees could entrench a government-led monopoly and undermine private sector innovation. Their appeal comes in response to the expanding role of the government’s One Login and Gov.uk Wallet systems, which have already been integrated with over 50 government services and are projected to reach 100 by 2025.
One of the key concerns raised by industry stakeholders is the potential use of the Gov.uk Wallet for commercial applications, including age verification for alcohol purchases. In an open letter to Parliament, digital identity providers and investors called for statutory limits confining these systems to government use only. They also pressed for legal recognition of any certified digital identity software for authentication across public services and asked that government-issued credentials, such as digital driving licenses, be made portable so they can be stored in any certified wallet, not exclusively in government platforms.
The letter further recommends the formation of a joint technical working group to ensure collaboration between government and certified identity and wallet providers. According to the signatories, such cooperation would help guide the development of digital ID standards while preventing fragmentation and promoting innovation.
The push for legislative amendments comes amid mounting scrutiny of the One Login system’s security architecture. Whistleblower reports have alleged a range of deficiencies, including unresolved vulnerabilities, inadequate staffing for security assurance, use of non-compliant administrative devices, and the absence of formal risk assessments. These concerns have reportedly drawn attention from both the National Cyber Security Centre and the Cabinet Office’s data protection officer, raising questions about the resilience of centralized digital identity platforms.
Industry representatives argue that without structural safeguards, public sector exclusivity could distort competition and threaten the viability of privately developed solutions. They estimate that the digital identity sector contributes £2 billion in annual revenue and supports approximately 11,000 jobs in the UK. The government’s policy shift toward commercial deployment of its own tools, without prior consultation, has reportedly caused a drop in investor confidence and raised broader concerns about fairness and transparency in the regulatory process.
In response to these developments, Parliament established the All-Party Parliamentary Group on Digital ID earlier this year to oversee the direction of national digital identity programs. While the group is intended to ensure accountability, some industry stakeholders have gone further, calling for the Gov.uk Wallet project to be paused or abandoned altogether. They argue that a single government-backed solution risks creating redundancy, displacing existing innovations, and limiting user choice in a rapidly evolving market.
Sources: MLex, Computer Weekly
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April 23, 2025 – by the ID Tech Editorial Team
