Digital IDs under fire as cash campaigners fear ‘total Government control of peoples finances’

Estimated read time 4 min read

Campaigners are warning that Government’s plans for digital ID could be the next step in providing the state “total control” over people’s financial freedoms if given the green light. This system will eventually allow people to prove their identity for paying tax to opening bank accounts, using a Government-backed app, The Times reports.

Martin Quinn, the campaign director of Campaign for Cash, is sounding the alarm that digital identification will compromise individual liberty. The policy proposal comes amid growing backlash to contactless payments and bank branch closures which analysts believe jeopardise cash access.


His comments come as ministers prepare to expand digital identity verification across various Government services. Digital ID verification for alcohol purchases is set to be introduced in shops and bars from next year.

As part of this new system, landlords and retailers will be able to scan digital identities to verify a customers’ age without revealing personal details like names or addresses.

It is understood that the verification process will involve quick checks such as scanning QR codes or using contactless card-style technology, similar to how people make payments today.

However, these plans have sparked anxiety among communities who feel disenfranchised from the changing banking environment and the dwindling access to cash services.

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Man worried and person on phone

Campaigners are voicing their concern over the introduction of digital IDs and the impact on banking services

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On his concerns, Campaign for Cash’s director said: “Digital IDs seems to be another way for the Government to have total control over our lives. If you can control peoples finances, the state has the final say, an individual could in effect be switched off.”

Quinn emphasised the importance of maintaining payment choice freedoms. “We must have the freedom to pay how we choose, and spend our money how we wish and not be dictated to by the state,” he added.

A recent consultation showed support for updating the Licensing Act 2003 to accommodate digital identities for alcohol sales. Providers of digital ID services will need to meet Government-approved standards under the UK digital identity and attributes trust framework.

The Data (Use and Access) Bill, which is currently moving through Parliament, will require these providers to be verified by the Government before their digital identities can be accepted alongside traditional forms like passports and driving licences.

Digital ID will feature a single sign-on system for all Government services, including benefit applications, replacing the current two-step verification process. This approach mirrors Estonia’s e-ID system.

Estonian citizens have used state-issued digital IDs for 20 years to access services including bill payments, online voting, and health information. Research suggests Estonians save five days a year when dealing with bureaucracy through this system.

Despite fears from campaigners, Government ministers have explicitly ruled out mandatory ID cards, despite former Prime Minister Sir Tony Blair’s calls for universal online identifiers.

Recent LINK data has revealed a declining trend in cash withdrawals, coinciding with branch closures. Research indicates that nearly half of people expect the UK to become cashless within their lifetime.

Woman looking upset, Lloyds Bank branch and NatWest closed branch sign

Britons have become increasingly concerned about cash access amid recent bank branch closures

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Natalie Ceeney, the chair of the Access to Cash Review, has previously warned Britons about the potential dangers of moving towards a cashless society.

“Despite a massive growth in digital payments over the past five years, there are still millions of people who depend on cash, and half of the UK population is concerned about the prospect of a cashless society,” she said.

In a statement to GB News, a Government spokesman said: “This is wrong. Nothing in the government’s approach will make digital identity services mandatory and people will be able to continue using existing, non-digital forms of ID.

“When people chose to use them, our digital identity trust framework will help digital identity services prove that they follow stringent security and privacy standards.”

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