The UK government has abandoned plans to introduce a mandatory digital identity system for workers to prove their right to work, marking another policy shift under Prime Minister Sir Keir Starmer’s Labour government.

Instead of requiring workers to register for a new digital ID, Labour ministers announced that existing right-to-work verification methods will be fully transitioned online by 2029. The current system relies on documents such as biometric passports and immigration records, which will be digitised rather than replaced with a standalone ID scheme.

The decision follows concerns from businesses and civil liberties groups that a compulsory digital ID could create unnecessary bureaucracy and raise privacy issues. Ministers said the revised approach would modernise checks while avoiding disruption for employers and workers.

The move drew criticism from Conservative leader Kemi Badenoch, who accused Prime Minister Starmer of being “clueless” and lacking “any sense of direction,” arguing that repeated policy reversals are undermining confidence in the government’s leadership.

Business Secretary Peter Kyle acknowledged the need for clearer communication, saying Labour ministers must do more to explain policy changes to businesses and the public to ensure certainty and stability.

The reversal is the latest in a series of adjustments by the government, following recent changes to inheritance tax rules for farmland and revisions to business rates for pubs. Analysts say the pattern reflects Labour’s effort to balance reform ambitions with political and economic realities as it settles into office.

Ministers insist the shift to fully digital right-to-work checks by 2029 will still streamline hiring processes and reduce fraud, while avoiding the controversy associated with mandatory digital identification.