Incoming UK PM Burnham to scrap Starmer's digital ID scheme

LONDON — July 19, 2026 — Andy Burnham's incoming government will abandon Keir Starmer's planned digital ID scheme, a close ally to the next prime minister has confirmed, marking a significant break from his predecessor's agenda.

Deputy Labour Leader Lucy Powell told the BBC's Laura Kuenssberg that scrapping the controversial programme would allow ministers to remain "laser focused on the cost of living" and on "rewiring the economy" and "rewiring the political system."

"It takes attention away [from tackling the cost of living]."

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— Lucy Powell, Deputy Labour Leader

Cost and Reprioritisation

Starmer announced the digital ID scheme last September as a measure to crack down on illegal working, but it sparked widespread concerns about personal data security.

Asked about the financial implications, Powell said the Office for Budget Responsibility estimated the scheme would cost approximately £1.8 billion over the coming years.

"That's not an insignificant amount of money. That will obviously be re-prioritised and redistributed in different ways," Powell said. "But as I say, it's not just about the money. It's actually about the attention and the focus, so that the whole of government machinery can work in service of the agenda and the vision that the Labour government is setting out under Andy Burnham."

A 'Bolder' Approach

Powell claimed Burnham would deliver on the Labour manifesto by being "bolder" and "clearer" about what the party stands for, as he seeks to put his own stamp on government and distance himself from Starmer's most divisive policies.

North Sea Oil and Gas: A 'Change of Emphasis'

Powell also confirmed there would be a "change of emphasis" on North Sea oil and gas drilling under Burnham.

While the 2024 Labour manifesto pledged not to issue new drilling licences, there has been widespread speculation that Burnham might do so to boost the UK's energy security. Powell did not confirm the new PM's exact intentions but said he would take a "more pragmatic approach."

"We've been really clear that the way to achieve, in the long term, energy security and lower bills is by ensuring that we do have our own homegrown, clean, much cheaper energy," Powell said. "But we've been absolutely clear that North Sea gas and oil is an important part of that transition."

She added: "It's an important part of the mix, and I think what Andy's talking about is taking a more pragmatic approach and working with the industry to make sure that it can contribute to that transition and to the mix that is needed over the long term. So let's see what he's got to say about that. But I don't think it's a change of policy. It's more a change of emphasis."

Andy Burnham is set to become prime minister on Monday, July 20, 2026.