In July 2024, the King’s Speech announced the new Digital Information and Smart Data Bill (DISD). The Bill aims to harness the power of data for economic growth, including setting up a regulatory framework for digital identities in the UK.
The specific contents of this Bill are still undisclosed, and so it is unknown at this stage if it will take a different approach to its predecessor, the Data Protection and Digital Information Bill (DPDI).
With Parliament reconvening after the summer break, we have shared our suggestions and hopes for what we’d like to see in the new DISD Bill. The Bill is likely to have a broad scope (potentially covering reforms to the Information Commissioner’s Office (ICO), access to commercial and research data, and more). In this blog, we specifically focus on the provisions related to digital identity.
Generally, we would like to see most of the provisions of the Data Protection and Digital Information Bill (DPDI) return. We are particularly supportive of the Digital Verification Service (DVS).
Formally setting up a new national digital identity framework
The Digital Verification Services will provide a formal framework, enabling UK residents to use digital identities to access more services. It will give digital identities the same confidence as paper documents in an ever-growing range of situations. The government has said it will support “the creation and adoption of secure and trusted digital identity products and services from certified providers to help with things like moving house, pre-employment checks, and buying age-restricted goods and services”.
These digital identities can also streamline access to government services. In a recent interview, Peter Kyle, Secretary of State for Science, Innovation and Technology, said he wants to make “government services as convenient as shopping or banking”.
We hope that there is clear engagement across government departments such as HMT, the FCA and the Joint Money Laundering Steering Group. We heard earlier this year from the CEO of the FCA Nikhil Rathi who said, “One of our priorities at the DRCF is to conduct and publish research on digital identity. We know other countries have made progress on this and we know mistakes were made in the past in this country as to how it was proposed. But technology and the opportunities have moved on, it is time also for us to revisit this.”
We look forward to seeing a clear roadmap from Ofdia and a range of government departments to allow people to use their digital identity across different sectors and use cases. This will give them a more convenient and reliable way to prove information about themselves (such as their age or name). Use cases could span retail, education, travel, utilities, health, gambling, insurance, pensions and more. This will create more secure and seamless online transactions, give people greater control over their personal information and enhance security and privacy.
And for businesses and government services, they can use digital identities to streamline verification checks, save time and money, reduce the chance of human error or non-compliance with the law, and improve the customer experience.
Forming the UK’s national digital identity trust framework
If the new DISD Bill is based on its predecessor, it will introduce the ‘Live’ or ‘1.0’ version of the trust framework. We hope that this new version will tighten up the requirements for digital identity providers, set a high standard of fraud protection and data privacy, and introduce new use cases to further digital identity adoption in the UK. We hope to see a clear distinction between the rules providers must follow to be certified to the Digital Verification Service (DVS), and more general practices they may find useful to consider.
The Bill will also introduce the DVS register, which will list all certified providers and enable residents and businesses to search between the different services they offer. People will also be able to check a provider’s certificate before choosing a trusted digital identity, and be reassured that they are not trading off their privacy for convenience. These new measures will enhance trust for citizens and businesses alike, and help streamline and improve everyday experiences.
Introducing the Holder Service Provider
We welcome the inclusion of the new ‘Holder Service Provider’ (or ‘HSP’ role), and await to see more detail as to future requirements.
This inclusion will clarify how the role of a digital identity wallet or personal data store (PDS) can interact and be certified within the Trust Framework. Key points it is hoping to achieve are:
- Describing how the Trust Framework will include verified attributes and broader data such as travel and transport, insurance and retail. The legal status of a digital identity wallet or PDS; acting as a proxy on behalf of the individual to consent to the use of their data.
- Introducing Common Data Standards and language; to be able to use the data an individual shares from their digital identity wallet or PDS data needs to be standardised.
- Structure of the consent model; how the digital identity wallets and PDS allows individuals to consent to their data being used by multiple entities.
Recognising the importance of choice
We do not believe any digital identity should be compulsory. It is important that people can choose to use a digital identity, with non-digital options offered alongside these.
The new DISD Bill needs to make it clear that digital identities can be used with the same confidence and acceptance as paper documents, for those who choose to use them. But they are not mandatory or the start of a national digital identity scheme.
Setting up Ofdia as an independent body
Although we are supportive of many of the provisions of the DPDI Bill and hope to see these included in the DISD Bill, there are some elements we believe should change.
One suggestion is for the Office for Digital Identity & Attributes (Ofdia) to be set up as an independent regulatory body which oversees the digital identity industry, rather than as an entity within the Department for Science, Innovation and Technology (DSIT).
This approach would guarantee the body’s independence, preventing any perception of the regulator as an extension of the government. This would, in turn, ensure trust and not hinder adoption in digital identities. Additionally, obtaining regulator status would allow Ofdia to join the Digital Regulation Cooperation Forum (DRCF), so that it may participate in collaborative work and research projects with other members. This would ensure a cohesive and integrated UK digital regulation framework, and enable Ofdia to represent the UK in international forums.
Inclusion of deed poll data
The government plans to move to an electronic system for the registration of births and deaths. We would like to see deed poll data included in the same standard records because changing your name by deed poll carries risks related to identity fraud. It could potentially be exploited to create multiple identities or evade criminal records.
If not properly monitored, this process can allow individuals to obscure their past, making it difficult for authorities to know their true identity, especially if the name change is not consistently updated across all official records. These risks highlight the importance of legal safeguards and the need for timely notification of name changes to relevant authorities.
Unlocking economic growth with digital IDs
There is a clear consensus across government and industry that digital identity has significant potential to improve public services and drive economic growth in the UK. Digital ID is predicted to contribute £800 million annually to the UK economy, and the development of a strong digital identity ecosystem could see UK businesses secure a share of a global market projected to be worth $40.44 billion by 2027.
As Parliament returns, the government is likely to push through several bills simultaneously, making it difficult for businesses to stay informed and respond effectively. Although there is a strong majority in the Commons, there isn’t one in the Lords, which means the final shape of the DISD remains unknown at this stage.
Businesses that embrace digital identity early will benefit the most, leveraging its transformative potential to remain competitive and attractive. To learn more about our Digital IDs, please get in touch.