The digital identity industry said it is concerned the UK Government aims to compete directly with the private sector digital ID market by extending the scope of the One Login programme beyond access to government services.
In January, the government announced a GOV.UK Wallet, which will support non-government use cases like proof of age. This has sparked fears within the industry that it will compete with wallets issued by the 50+ identity providers that have already been certified under the UK [Digital Identity & Attributes Trust Framework] DIATF.

In an open letter to the Secretary of State for Science Innovation And Technology, Peter Kyle MP, the Age Verification Providers Association, the Association of Digital Verification Professionals and the Online Safety Tech Industry Association, said the move has “sent shock waves through the sector” and “triggered widespread uncertainty among suppliers and investors.”
They said the UK Government risks creating monopoly in digital identity, “that could stifle innovation, limit consumer choice, and impose costs on the taxpayer.”
“The absence of any reference to the thriving private market, are of reassurance that non-government digital IDs will remain equally viable risks history repeating itself by damaging the prospects for this technology as a whole,” said the letter.
The associations said the taxpayer could face “billions of new costs” based on the functions the private sector currently provides, such as customer service and integration support to restore confidence and maintain momentum.
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“We urge the government to clearly reaffirm the vision for digital ID in the UK, and in particular, the interplay between public and private roles.”
Specifically, the letter asks that the GOV.UK Wallet and One Login, single sign on are statutorily limited to authentic authentication for public services.
“Critically, this mitigates the risk the initiative is perceived as seeking to introduce a border broader national government ID scheme,” it said.
It also asks for Trust Framework compliant digital IDs to be accepted for authentication to public services, “giving consumers choice and the ability to interact online with government without a state issued ID.”
Lastly it wants government issued credentials, such as digital driving licences, to be allowed to be held in any certified wallet, not just the GOV.UK Wallet.
“These actions would support a fair, competitive and innovative digital identity ecosystem in the UK, one that offers genuine choice while avoiding distortions caused by exclusivity or unfair states subsidised pricing,” it said.