Digital identity verification used by mortgage lenders, brokers and other regulated firms is unaffected by the Government’s decision to abandon its national digital ID scheme.
Prime Minister Andy Burnham scrapped the planned government-issued digital identity programme after entering Downing Street, with its proposed funding redirected towards cost-of-living measures.
The abandoned programme was developed under Sir Keir Starmer and would have provided a digital identity document to UK citizens and legal residents. Its use was due to become mandatory for Right to Work checks by the end of the Parliament.
It was separate from the digital verification services already used by financial services firms for customer onboarding, identity checks and fraud prevention.
EXISTING CHECKS REMAIN
Commercial providers can be independently certified against the Government’s UK Digital Verification Services Trust Framework, which includes standards covering privacy, data protection, fraud management and cyber security.
Version 1.0 of the framework was finalised in June under provisions in the Data (Use and Access) Act 2025. Firms can confirm the certification held by providers through the Government’s digital identity and attribute services register.
David Jones (main picture, inset), CEO of Click2Check, said: “There has been some confusion in the market in recent days since the Government announced it was scrapping its digital ID scheme.
“This scheme should not be confused with digital identity verification, which is being used every day by millions of people to prove who they are securely when buying property, opening bank accounts, starting employment or accessing professional services.”
REGULATORY RESPONSIBILITY
The policy reversal does not alter the identity and customer due diligence obligations applying to lenders, brokers and other businesses covered by anti-money laundering regulations.
Digital verification can support those processes, but firms remain responsible for taking a risk-based approach, keeping appropriate records and conducting additional checks where necessary.
The Government has previously committed to providing clearer guidance on how trust framework-certified services can be used to meet obligations under the Money Laundering Regulations.
DIGITAL MORTGAGES
HM Land Registry also permits conveyancers to verify borrowers and other transaction parties digitally where its identity standard is satisfied. Official guidance applies to applications requiring identity evidence, including property transactions involving mortgages.
Jones added: “The UK has a mature identity verification market and significant expertise in this area.
“As fraud becomes more sophisticated and consumers increasingly expect digital services, trusted digital verification remains more important than ever.”
