First official cost estimate for UK gov’t digital ID plan: £1.8B over 3 years

A provisional estimate for the cost of the UK’s national digital ID system pegs it at £1.8 billion (approximately US$2.4 billion) over the next three years.

The Office for Budget Responsibility included its estimate for “digital ID cards, for which no specific funding has been identified,” in its “Economic and fiscal outlook for November 2025.” It breaks down into  £1.3 billion ($1.7 billion) in capital expenses (CDEL) and £0.5 billion ($0.65 billion) in operating expenses (RDEL). The body therefore forecasts an annual cost of £0.6 billion ($0.8 billion) for the digital ID program.

The UK government has not set aside any new funding for its planned digital identity wallet and credentials, with Digital Minister Ian Murray telling a parliamentary committee that the cost will be covered with funding drawn from existing investments.

“The Government has announced its intention to meet the costs of this through existing DEL budgets, however no specific savings have yet been identified,” the report acknowledges.

OBR notes that Home Office is planning to end paid hotel stays for asylum seekers, and expects to save £1.1 billion ($1.45 billion), but that figure is built into the budget.

The Age Verification Provider’s Association (AVPA) used an estimate of £1-2 billion ($ billion) in arguing that the public sector didn’t necessarily need to be involved any more than it was prior to PM Kier Starmer’s announcement of national digital ID ambitions. ADVP Chair David Crack told Biometric Update that a lower cost of delivery from the private sector would be accompanied by faster achievement of the government’s policy goals and stronger privacy protections.

Article Topics

ADVP  |  digital ID  |  digital identity  |  digital wallets  |  GOV.UK Wallet  |  UK  |  UK digital ID