nIn Hong Kong, identity cards are an integral part of life. Whether enrolling in school, opening a bank account, renting a property, or getting a job, this small card is indispensable. Its necessity is unquestioned. Across Europe, most countries have long established identity card systems and are progressively digitizing them. The UK, however, remains a “cardless nation,” lacking both physical identity cards and a unified national digital version. In 2010, the coalition government abolished the previous administration’s identity card scheme and destroyed the database the following year. This absence of a system is increasingly becoming a vulnerability in the digital age. Without a convenient and reliable identity tool, public services operate sluggishly, and opportunities for illegal activities abound.n
nThe UK’s identity verification system is highly fragmented. Different procedures exist for tax filing, welfare claims, healthcare, employment, and housing. Citizens repeatedly submit the same information across various departments, leading to high administrative costs and frequent errors. In contrast, many European countries have established unified electronic identity infrastructures, enabling both public and private sectors to verify identities within a secure framework. Users need only authenticate once, allowing them to handle data with the “minimum disclosure principle,” such as confirming age eligibility without revealing birth dates. If the UK could establish such a foundational system, it would not only reduce document duplication but also enhance privacy protection and trust. For those lacking smart devices or internet access, the government could still provide non-digital options and on-site assistance to ensure no one is excluded.n
nImmigration and labor market pressures further highlight the issue. Without a unified identity system, frontline personnel often struggle to verify an individual’s true identity promptly. Illegal immigrants can present fake documents claiming to be British citizens, while unscrupulous employers or landlords can argue in court that they “did their best to check but couldn’t distinguish between real and fake,” thus evading responsibility. The current “Right to Work” and “Right to Rent” verification systems are fragmented and complex, leaving room for document forgery. Adopting verifiable, traceable, and revocable digital identities would allow employers and landlords to instantly verify the legal status of individuals, while maintaining audit records. This would close loopholes in illegal employment and black market rentals, offering greater protection to law-abiding businesses and citizens.n
nFiscal integrity and trust are also affected. HM Revenue and Customs estimates that tax losses due to evasion, misreporting, and fraud amount to tens of billions of pounds annually. The Daily Telegraph suggests that enhancing verification through digital identities could help the government recover approximately £600 million in taxes each year. This is not about increasing taxes but plugging gaps, ensuring honest taxpayers no longer foot the bill for fraudsters. When welfare claims and tax filings are based on verified identities, processes become faster and more accurate, raising the cost of fraud and enabling quicker approval for genuinely eligible individuals. Such systemic reform would enhance fairness and instill confidence in public finances.n
nNaturally, privacy and surveillance risks must be handled with care. The UK’s previous attempt to implement identity cards failed due to societal distrust in the government’s ability to protect data. Any new initiative must prioritize rights protection. First, information disclosure should be minimized and not centralized in a single database. Second, system design must be transparent and subject to external oversight, ensuring any cross-purpose data usage is legally justified and traceable. Third, offline options must be retained for vulnerable groups to prevent new forms of social exclusion due to technology. If these principles are upheld, digital identities could enhance rather than diminish privacy, empowering citizens to have greater control over their personal data.n
nThe implementation should start with high-risk and high-frequency scenarios, such as work rights, rental rights, and tax verification, gradually extending to healthcare and local government services. The government should also publish performance metrics, such as reductions in illegal employment cases, declines in tax error rates, and improvements in public service efficiency. Most European countries have already demonstrated that identity systems are not antithetical to freedom. With clear boundaries, strict oversight, and defined purposes, identity infrastructure is the foundation upon which a free society operates. Hong Kong’s experience also shows that with reasonable system design and sufficient credibility, identity cards can simultaneously safeguard privacy and efficiency. For the UK to restore order and trust, rebuilding a credible digital identity system is no longer a question of whether to implement it, but how to do so.n
