Andy Burnham Scraps Digital ID to Fund Cost-of-Living Support

Incoming Prime Minister Andy Burnham will scrap the flagship digital ID program introduced by his predecessor, Sir Keir Starmer, upon taking office on Monday, July 20, 2026. Described by his team as a "reset of priorities," the decision redirects resources estimated by the Office for Budget Responsibility at £1.8 billion over three years toward the cost-of-living crisis and local community growth.

Burnham is prioritizing immediate economic relief, including the reopening of the Warm Home Discount scheme in October 2026. This program provides automatic £150 payments to approximately six million eligible households. While abandoning the ID project, Burnham will maintain mandatory right-to-work checks for employers and extend them to the gig economy to combat illegal immigration.

Other early policy shifts include a potential departure from the 2024 Labour manifesto by approving new oil and gas drilling at the Rosebank and Jackdaw fields in the North Sea, as well as increasing public control of water and energy sectors.

Reactions have been polarized. Civil liberties group Big Brother Watch and the Liberal Democrats welcomed the cancellation of the ID scheme. Conversely, Conservative leader Kemi Badenoch dismissed the move as "airy-fairy stuff," characterizing Burnham as a "people pleaser," while Shadow Technology Secretary Julia Lopez accused him of attempting to "pretend he’s riding to the rescue" after the previous government wasted millions on the project.