ADVP Expects Digital Identity Consultation to Play by Rules of Data Act, DIATF

Why It Matters

A government‑centric model could stifle competition, raise costs, and undermine the UK’s digital‑identity market, jeopardising economic growth and user control over personal data.

Key Takeaways

• ADVP seeks plural market per Data Act
• Government‑only wallet risks lock‑in
• Calls for transparent cost‑benefit analysis
• Advocates independent oversight of data ecosystem
• Digital‑ID sector drives £500 M investment

Pulse Analysis

The UK’s digital‑identity agenda is at a crossroads as the government prepares a public consultation. The Data (Use and Access) Act 2025 sets out a framework for a plural, regulated market, yet the current GOV.UK proposal appears to funnel users into a single, state‑issued wallet. ADVP’s statement frames the consultation as a pivotal moment to decide whether identity remains a personal asset or becomes a state‑controlled commodity, echoing similar debates in jurisdictions like Utah’s State‑Endorsed Digital Identity model.

Industry analysts warn that a monopolistic approach could inflate public spending, limit innovation, and erode consumer trust. Private‑sector providers certified under the Digital Identity and Attributes Trust Framework (DIATF) already deliver millions of Right‑to‑Work checks and billions of global identity verifications, supporting a robust ecosystem that aligns with the Data Act’s requirement for user choice and competition. By benchmarking cost‑effectiveness, security, and accessibility against DVS alternatives, policymakers can avoid the pitfalls of a costly, single‑route system and preserve the sector’s £500 million inbound investment pipeline.

Beyond the UK, the outcome will signal how advanced economies balance sovereign oversight with market‑driven innovation in digital identity. Independent oversight, clear governance, and transparent impact assessments are essential to sustain the 11 000 skilled jobs and the sector’s export potential. If the consultation embraces a plural framework, the UK could cement its position as a leader in secure, user‑centric digital identity, fostering long‑term economic benefits and reinforcing data sovereignty for citizens.