UK digital identity could be lifeline for Post Office, and vice versa

Digital identity is one of four areas of major opportunity for the UK Post Office as it undertakes a transformation plan in the wake of falling revenues, the Horizon IT scandal and the broader shift towards digital public service delivery.

The first comprehensive government review of the Post Office in 15 years took the form of a July Green Paper. The paper sets out the government’s vision for the Post Office as a service delivery option of last resort, a community economic support and an adaptable, sustainable organization. It also lays out more drastic longer-term options, like changing the ownership structure of the institution.

Among the roles for the Post Office going forward, the government sees potential in “enabling future participation in digital government, including how Post Office could play a role in supporting digitally excluded individuals by signposting to local digital inclusion support, where this represents good value for money. For example, Post Office’s digital identity offering has already had success acting as the in-branch verification check for GOV.UK One Login; a function which could be extended to other applications and services as government expands upon its digital government programme.”

The paper cites Lloyds’ estimate that 1.6 million people in the UK live offline.

The mandate to transform comes with a £118 million subsidy. The government has also been running a consultation on the future of the Post Office, which closes on October 6.

Digital inclusion and in-person identity verification

The response from the post office comes in the form of a paper dated October, 2026. It questions several claims in the government Green Paper.

The Post Office tabulates its social value at £6.5 billion and its economic impact at £4.7 billion per year, significantly higher than the government. It also attributes the 79 percent decline in Post Office revenue from government services more to the removal of services like Biometric Residence Card collection than to the removal of the Post Office Card Account, which the government says is the chief cause.

The institution has its own five-year transformation plan, which identifies digital identity as one of four opportunities to target. The other three, in-person government services, expanded government services like advice for small businesses and support for digital inclusion, and bill payments, could each also encompass digital identity issuance or verification.

The overarching message is that the future of the Post Office should include an enhanced role in government service delivery.

“Make post offices the trusted place for essential government services, like digital identity or pharmacy prescription collection.”

The Post Office has already made some steps in that direction, providing in-person identity verification for GOV.UK One Login using Yoti’s face biometrics and offering its own digital ID. The Post Office’s digital ID is certified to provide a range of regulated verifications, including background checks and Right to Work confirmation.

It could be designated the preferred partner for in-person interactions needed for the government’s digital identity scheme. As digital ID is used for more transactions, from online and in-person alcohol sales to KYC checks, an official provider for in-person digital identity verification services will be increasingly important, the paper says.

Article Topics

digital government  |  digital ID  |  digital identity  |  digital inclusion  |  identity verification  |  UK digital ID  |  UK Post Office