Doubt has been cast about the future of digital identity after a parliamentary committee published a highly critical report on the Government’s plans.

It has prompted warnings from cross-industry group MyIdentity that companies should suspend further investment in digital identity systems until confidence is restored in the Government’s approach.

Plans for mandatory digital ID doomed to fail and destroyed public confidence from the outset.”

The committee’s report, Mandatory to manageable: the government’s plans for digital ID, concluded that “weak policy development and a rush to announce left plans for mandatory digital ID doomed to fail and destroyed public confidence from the outset”.

Published just seven days after the King’s Speech reaffirmed the Government’s commitment to digital identity, the report also criticised ministers for failing to articulate a compelling case for digital ID and highlighted concerns over policy development and implementation.

MyIdentity says conflicting views across Government departments, regulators and industry bodies have created uncertainty about how digital identity will be implemented in property transactions, leaving the firms involved legally exposed.

Support withdrawn

As a result, MyIdentity and the Home Builders Federation have met officials from the Department for Science, Innovation and Technology (DSIT), the Ministry of Housing, Communities and Local Government (MHCLG) and the Digital Property Market Steering Group (DPMSG) to tell them they could no longer support current initiatives.

The group says it has also now advised around 250 companies to suspend further investment in the sector.

MyIdentity was established with public funding to develop a digital identity trust framework for residential property transactions.

Its framework was built with DSIT involvement and input from 106 organisations, including five Government departments, regulators and industry trade bodies.