The UK government has announced plans to develop its national digital ID system entirely in-house, moving away from reliance on private-sector developers. The announcement was made by Chief Secretary to the Prime Minister Darren Jones while presenting a prototype of the “Government by app,” with support from the Government Digital Service.

A key feature of the initiative is that it will not rely on a centralized database. Instead, citizens’ data will remain with the respective government departments. For instance, benefits data will stay with the Department for Work and Pensions, driving records with the DVLA, and tax information with HMRC.

The government aims to significantly reduce administrative costs by digitizing services. Currently, the DVLA processes around 45,000 letters daily, while HMRC handles approximately 100,000 phone calls. Automating these processes through the app could result in savings of tens of billions of pounds.

Health services will not be included, as they will continue to operate through the NHS app. However, services such as childcare, pension statements, and additional HMRC features may be added in the future, though not within this year. Any new services integrated into the app will likely require parliamentary approval.

Further details are still being finalized through an ongoing eight-week consultation, including whether the digital ID will be available only to individuals aged 16 and above or extended to younger users.

The total cost of the project remains uncertain. Earlier estimates suggest an investment of £1.8 billion over the next three years, though officials note that a definitive figure is not yet available. Despite this, the government projects net economic benefits of £4.3 billion over the next decade.