They’re Missing the Point. Why Digital ID Could Change Retail More Than Immigration

They’re Missing the Point. Why Digital ID Could Change Retail More Than Immigration 

What does a future where every UK citizen must carry a Digital ID look like? What does it mean for businesses and consumers today? 

In the last 24 hours, the government’s announcement of a nationwide Digital ID scheme has dominated headlines, with Prime Minister Sir Keir Starmer positioning it as a cornerstone of Labour’s plan to curb illegal migration and modernise access to services. The scheme will be mandatory by 2029, requiring every citizen and legal resident to hold a Digital ID in order to work in the UK. 

The new ID will be app-based, stored on smartphones much like the NHS App or mobile bank cards, and will include personal details such as name, date of birth, nationality, residency status and a photograph. Employers will no longer be able to rely on paper documents or National Insurance numbers, which the government says are too easy to borrow or forge. 

While the government insists citizens will not need to carry their ID day-to-day, it will soon become the only accepted proof of Right to Work. Over time, it is also expected to unlock simpler access to public services, from driving licences and childcare to welfare and tax records. 

With all the political focus on immigration and security, there are bigger questions about what this change means for retailers and young people — especially when it comes to age-restricted sales. In particular, how can retailers make confident investment decisions in such an uncertain landscape, where government, private providers and big tech are all moving in different directions? 

Retailer Focus: Supporting Clients Through Uncertainty 

With nearly 20 years’ experience supporting the UK’s leading retail and hospitality businesses, Serve Legal is looking beyond the Right to Work implications of mandatory Digital IDs. Our focus is on how these changes will impact both retailers and their customers when it comes to the sale of age restricted goods. While government and media narratives centre on immigration control and access to public services, the reality for retailers is more complex — and the questions they face are very different.

'Retailers lack clarity and already feel sidelined in the wider debate around Digital ID in the UK. This latest announcement only deepens uncertainty for those relying parties, whose concerns go far beyond migration policy. It’s time for government, private providers, big tech, relying parties and end-users to come together in one coordinated conversation about the outcomes we actually want.'

- Kate Rand – Serve Legal’s CEO 

The government remains confident that changes to legislation will enable Digital IDs to be accepted as proof of age for alcohol sales by the end of 2025. Private providers such as Yoti and Luciditi are already active in this space, offering Digital proof of age for a variety of restricted products, including e-cigarettes and tobacco. The arrival of a state-mandated scheme, however, raises important questions about how these existing solutions will fit alongside the government’s approach in the years leading up to 2029, and how both retailers and consumers will adapt. 

For retailers, the challenge is immediate. Many were already working through the practical difficulties of introducing Digital ID into their systems, from technology integration and interoperability to budgeting and staff training. The latest announcement compounds that uncertainty, leaving businesses with a difficult decision: whether to invest in the software to accept the existing Digital ID solutions now, or hold back until the government mandated system arrives in 2029. 

At Serve Legal, we are asking the questions that matter most to retailers: 

• How can retailers make confident investment decisions in a Digital ID landscape that is so uncertain, where government, private providers, and big tech are all moving in different directions?
• How should retailers prioritise their spending and staff training in the face of this uncertainty? 

• How will smaller independent retailers, with fewer resources, cope compared to large supermarkets and pub chains? 

• How will consumer trust and adoption affect uptake — and what happens if customers resist using Digital IDs? 
• What support or guidance will government provide to ensure a smooth transition for retail businesses? 

Opinions: Public Sentiment and Insights from 16-25 Year Olds 

The announcement of a mandatory Digital ID scheme has sparked significant public debate within the last 24 hours. Civil liberties groups have voiced concerns around privacy and data security, while more than one million people have already signed a petiton opposing the introduction of Digital ID cards, a number that continues to rise rapidly. The rollout is scheduled to be completed before the end of the current Parliament, no later than August 2029, but the backlash has shown how divisive the policy already is. 

Serve Legal’s own research, carried out with our auditor community — most of whom are aged 16–25 and therefore a key demographic directly affected by this change — highlights similar concerns. In a survey conducted earlier in 2025, 59% of our auditor community said they believed Digital ID would eventually become mandatory, but few expected it to happen so soon — and enthusiasm among young people was limited. Uptake was extremely low, with only 17% of respondents saying they had and used a Digital ID. The majority, 83%, did not. Their main reasons were a lack of awareness, the belief that Digital ID was unnecessary, and a preference for physical identification. 

Trust in the technology remained a significant barrier. Only 11% of respondents had even heard of the government’s Digital Attributes Framework, and of those, two-thirds expressed little confidence in it. Fewer than one in five respondents believed that Digital ID offered stronger privacy protections to physical ID. Overall, scepticism significantly outweighed enthusiasm. 

These findings underline a clear challenge: while government is confident that Digital ID can be successfully mandated by 2029, both consumers and retailers remain far from ready or confident.  

Serve Legal’s Position 

Serve Legal recognises the government’s ambition to modernise identification and strengthen compliance. However, our position is clear: retailers must not be left in limbo. Without clarity on timescales, interoperability, and the role of private solutions in the years leading up to 2029, retailers cannot make informed decisions about investment, training, or customer experience. 

Our role as market leaders in age-verification compliance is to support and inform our clients through periods of uncertainty like this. We will continue to monitor both public opinion and government progress, while ensuring the concerns of retailers remain central to the national conversation.