The Minister of State, Department for Energy Security and Net Zero (Lord Vallance of Balham) (Lab)

I thank the noble Viscount, Lord Camrose, and the noble Lord, Lord Clement-Jones, for the points that they have raised with the Government. Unsurprisingly, I have no doubt that this is an area in which there will be strong interest across the House. I remind the noble Viscount, Lord Camrose, of the comment of the noble Lord, Lord Hague, that the: “Arguments against digital ID are paper thin”. I shall address the concerns that have been raised by the noble Viscount, Lord Camrose, and the noble Lord, Lord Clement-Jones. In the context of the Data (Use and Access) Act, we were clear that the services under that legislation were not mandatory, nor were they ever designed to be, and they cover many of the areas that have been discussed so far. This new national digital ID will be required, specifically and only, for right-to-work checks by the end of this Parliament. It is a very narrow use for a very specific purpose. However, we have always believed and continue to believe that there are huge upsides for a digitally enabled society, one where everyone feels able to participate, everyone feels a sense of agency and everyone’s lives are made easier by a digital key that indeed unlocks access to services—something that is a big upside to a digitally enabled society. Those businesses that enable this, as we have seen in other countries that have introduced a digital ID, and the services that those businesses provide will have an important role to play. We expect the digital identity market to be able to build on the national digital pass and offer value-added services for individuals and businesses. In countries where digital ID is well established, the private sector has built a wide range of services around it, making everyday tasks such as open banking, renting a flat and applying for a mortgage faster, simpler and more secure, but that is not a mandatory use of this. The required use is for the right to work. I turn to the subject of illegal migration, a problem that obviously has grown enormously over the past 10 to 15 years. I absolutely agree that there is no silver bullet to solving illegal migration, but ensuring that there is a single digital system to prove that you have a right to work will simplify the process and drive up compliance, making it easier for businesses and providing the Home Office—this is an important point—with an overview of employers conducting checks that they can use to audit those suspected of hiring illegally. It will be possible for it to see where there are a large number of employees but only two or three who have been checked for work. Ultimately, it should be easier for honest, legitimate employers to get started and much harder for those employing illegally. The noble Lord, Lord Clement-Jones, said that this was an invasion of privacy and civil liberties. I do not agree, and I think those countries that have introduced it would not agree. Digital identities preserve and increase privacy by limiting the information that individuals have to share when proving something about themselves. The credentials in play here are name, date of birth, information on nationality or residency status, and a photo. That is what you need for a right-to-work check, and the display may be as simple as a yes or no, with none of the information shared with the third party. We will ensure that strict safeguards are in place to prevent illegal tracking or misuse of data by the Government or anyone else. On the point that has been raised about how this actually works and whether we end up with a big target —a honeypot—this will be a federated system, as it has rightly been pointed out that it should be, not a single repository, increasing security and not creating a honeypot of data. A question was asked about those aged 13 and upwards. This is a system designed for 16 year-olds and above. As part of the consultation, there will be consultation about younger age groups and whether there may be utility for them. Any use of personal data will continue to be regulated by the independent Information Commissioner’s Office, and our consultation, which will be launched later this year, will consider whether further safeguards will be needed or appropriate. The question of cost was raised. While I cannot give exact details of the cost, I can say that it will be met within the existing SR budget over the SR period. OneLogin was raised. Indeed there were problems at the beginning, and that is not unusual with a system as it is getting set up. Those problems date from 2023 and have been resolved, and the National Cyber Security Centre is working hand in hand to get the OneLogin system to the place where it needs to be. The National Cyber Security Centre will be central to getting this system set up as well. Finally, I want to talk about digital inclusion, a key point raised by the noble Viscount, Lord Camrose, and an area that is increasingly important for the times we live in. That is why this Government have made digital inclusion a priority. We set out a range of first steps in the Digital Inclusion Action Plan, published in February this year, and are working across government to improve inclusion. We know that those who do not own or cannot afford a smartphone, do not already have photo ID or have additional accessibility requirements will require special attention. One in 10 people already struggles to prove their identity and access the service that they have a right to because they lack a photo ID. This scheme is an opportunity to get them a free digital credential that proves their identity and helps them to access those services. We will deliver a comprehensive inclusion programme, including face-to-face support to ensure that everyone eligible is able to access the new digital pass and benefit from it if they want to, including those using it for right-to-work checks—the only required need for this. It will provide targeted support to those who currently struggle to engage with digital services, including options for a digitally enabled physical alternative for those without a smartphone or who may experience data poverty, such as those unable to afford data use on their phone. We have already started to engage with a range of expert organisations and community groups, including the Digital Inclusion Action Committee, and we look forward to continuing to do so throughout the credential’s design and development—a process that, as the noble Viscount, Lord Camrose, has pointed out, must be done in an agile way and will require both external input and government technical need. This is an important development that, although with a narrow requirement, has a broad use that I think many people already take advantage of in different forms in this country. Digital ID will make life easier for people.