Burnham government to drop digital ID and tech department

Controversial ID Scheme and government technology department to be tossed on scrap heap as new prime minister enters 10 Downing Street

Karl Flinders

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Published: 20 Jul 2026 12:00

Andy Burnham’s premiership is set to start with the scrapping of controversial plans for a digital ID scheme for all UK adults.

The Department for Science, Innovation and Technology (DSIT) is also likely to be dumped as Keir Starmer ends his time in Number 10.

The digital ID scheme aims to create a national ID to make public services quicker and more secure to access, with the potential to include private sector services, such as gym memberships or parcel collections.

It was first announced by prime minister Keir Starmer in September 2025, but has since been watered down. It was originally planned to be mandatory for right-to-work checks, but in January 2026, the government backtracked on this and removed the compulsory aspect, following uproar from privacy campaigners.

According to reports, a Burnham spokesperson said the ID scheme would be ended to allow the government to redirect resources. “The time and resource that was going to be spent on a national ID scheme will go instead to where it’s most needed, such as helping with the cost of living,” the spokesperson was reported as saying.

Just months ago, the King’s Speech indicated Starmer’s government would make a renewed effort in the implementation of the ID plan.

Tech department to be cut

Burnham’s reported plans to ditch DSIT and spread its activities across other departments has come in for criticism from the IT sector. IT industry trade bodies TechUK and the Startup Coalition have written to Burnham describing it as the “wrong change at the wrong moment”.

The letter from TechUK’s CEO Julian David and executive director at Startup Coalition Dom Hallas warned Burnham that scrapping the department will send a “terrible signal to a sector growing at 10% a year”.

“DSIT works because it brings researchers, AI practitioners, innovators and policymakers together in one department – a single front door that gives the tech sector clarity, pace and a government partner that understands technology and champions the sector in the Cabinet,” the incoming Prime Minister was told in the letter.

He was warned that “breaking up the work of DSIT endeavours” such as the AI Safety Institute, the Sovereign AI fund and Government Digital Service “would slow momentum at a time when pace is essential for both the growth of the economy and our standing on the global stage”.

The IT trade bodies said they supported Burnham’s vision to bring growth to every postcode in Britain, but added: “We want you to be able to leverage the tech sector to deliver on your ambitions to change our economy and society for the better. To do so, we should use this moment to strengthen tech leadership at the heart of government, not dismantle it.”

Burnham has already stated that he will continue to fuel the government’s strategy to insource government work, including IT.

According to a Financial Times report, he told a meeting of Labour MPs he would curb outsourcers and bring government contracts in house, putting control into public hands.

Burnham is quoted as criticising “an outsourced state with little accountability” as he spoke to MPs. His desire to bring government contracts in house is already a policy of the Labour government, but his statement to MPs adds urgency as he will be eager to hit the ground running with his stated plan.

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