Incoming British Prime Minister Andy Burnham is set to abandon the government’s planned digital identity scheme after taking office on Monday, with resources allocated to the project expected to be redirected towards tackling the rising cost of living. A spokesperson for the new Labour Party leader said the decision reflects Burnham’s focus on immediate economic priorities rather than continuing with a programme that has faced political and public opposition.

The digital ID proposal, introduced by outgoing Prime Minister Keir Starmer’s government in September, was designed to create a national digital identity system for workers as part of efforts to address illegal migration and respond to growing support for the right-wing Reform UK party. However, the plan faced criticism from several groups, and Starmer later removed the requirement for the ID to be mandatory following public backlash.

Burnham, who was elected leader of the governing Labour Party on Friday, will become Britain’s seventh prime minister in a decade when he replaces Starmer. The former mayor of Greater Manchester has promised to focus on issues affecting households, including living costs, while attempting to strengthen Labour’s position against Reform UK, which has gained significant support in recent opinion polls.

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A spokesperson for Burnham said the time and resources that would have been spent developing a national digital ID system would instead be directed towards areas where people need the most assistance. The move marks a major policy shift from Starmer’s administration, which had presented the scheme as a tool to improve immigration controls and modernise identity verification.

The digital ID programme had already faced questions over its financial impact. In November, the Office for Budget Responsibility estimated that the scheme could cost around £1.8 billion ($2.4 billion) between the 2026/27 and 2028/29 financial years. Critics, including opposition Conservative Party lawmakers, accused Labour of wasting public money on a project that had little public support.

The United Kingdom has historically had a cautious approach towards national identity systems. Identity cards introduced during the 20th century were abolished after World War Two, and British citizens have traditionally relied on documents such as passports and driving licences for identity verification. Burnham’s decision to scrap the digital ID plan signals a renewed emphasis on cost-of-living measures and public spending priorities under the incoming government.

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