U.K.’s Burnham drops digital ID scheme to prioritise cost of living, say allies

Britain’s next leader Andy Burnham will scrap the government’s plans for a digital identity scheme when he takes office, signaling his intention to focus resources on kitchen table issues such as the cost of living, his allies have said.

Burnham, who is known as the ‘King of the North’ for his work as the mayor of Greater Manchester in the northwest of England, will replace Keir Starmer as Prime Minister, saying that he will also announce his cabinet team of senior ministers on Monday, July 20, 2026.

Mr. Burnham’s office said one of his first moves would be to abandon a plan for all employees to hold digital credentials; it was a plan designed to tackle illegal immigration but was judged a “debacle” by a cross-party committee of MPs.

Mr Starmer removed the ID requirement in January following criticism.

Desire to refocus resources

“Any time and resources that would have been spent on the national identity plan will instead go where it is needed most, such as helping with living costs,” Mr Burnham’s spokesman said in a statement.

Identity cards were abolished in the United Kingdom after the Second World War, and Britons generally use documents such as passports and driving licenses to prove their identity.

In November, Britain’s Office for Budget Responsibility estimated the cost of the identity scheme between financial years 2026/27 and 2028/29 at around £1.8 billion ($2.4 billion).

Julia Lopez, an MP from the opposition Conservative Party, said: “Labour has spent millions of pounds on this project and now they are trying to act like Andy Burnham is coming to the rescue.”

Lucy Powell, Labor deputy leader and Mr Burnham’s ally, said the savings from scrapping the plan might not be large but the move was “a small example of reprioritisation”.

“This is an opportunity to start over, to refresh, to look at things that maybe not only consume resources but also distract from government priorities,” he said. BBC’s On Sunday, July 19, with the program of Laura Kuenssberg.

Both on the BBC and in interviews Sky News, Powell did not address other policies or details of Mr Burnham’s cabinet team but said he would stick to the previous government’s commitments on new oil and gas drilling in the North Sea.

“Labour’s 2024 manifesto pledged to not issue new licenses but honor existing licenses such as the Rosebank and Jackdaw areas in Scotland, with regulators only agreeing to cancel these licenses in 2025 following a legal challenge.

US President Donald Trump was quick to consider a possible change, saying on his Truth Social platform that “the people of Aberdeen in Scotland are dancing in the streets” as Mr Burnham “has stated that he will open up the priceless North Sea Oil”.

In another area where Mr Burnham could take action, Powell also said the government had the power to place struggling water companies such as Thames Water into “special measures”. “Let’s see if the government will do this.” he said. Sky News.