The UK government will introduce digital identities to streamline alcohol purchases

By the end of 2025, the UK will take a significant step towards the digitalisation of its identity verification processes. In an effort to improve security, efficiency, and convenience in everyday interactions, the government plans to implement a legal framework that will allow the use of digital identities to verify age when purchasing alcohol.  

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his change is part of a broader push to replace traditional verification methods, such as passports or driving licences, with digital solutions. Instead of carrying physical documents to pubs and shops, consumers will be able to use digital identities verified by certified providers. 

With this initiative, the aim is not only to streamline the age verification process but also to reduce the risks associated with the loss or theft of personal documents. By adopting digital identity technologies, the UK is aligning itself with global trends towards digital security and user convenience, ensuring that everyday interactions are both secure and efficient. This move also paves the way for greater adoption of digital identity technologies across other sectors, from banking to healthcare. 

The adoption of digital identities for age verification 

Currently, the Licensing Act 2003 in the UK does not allow for the use of digital methods for age verification when purchasing alcohol, requiring consumers to present physical documents. This process can not only be inconvenient but also poses security risks, as these documents often contain personal information, such as the holder’s address, which may be unnecessary for making a simple purchase. 

To address these concerns, the UK Department for Science, Innovation, and Technology has proposed a solution that modernises the age verification process. The new proposal will allow consumers to choose digital identities to verify their age when purchasing alcohol at pubs, bars, shops, and other points of sale. Digital methods, such as QR codes or NFC technology, will enable users to validate their age directly from their mobile phones. 

Physical documents will still be accepted as an alternative for those who prefer not to use the technology. This approach allows for a gradual transition, with the government promoting a balanced approach. 

Benefits according to UK authorities: Positive impact on consumers, businesses, and the economy 

The proposal to introduce digital identities for age verification when purchasing alcohol will not only bring individual benefits but will also have a significant impact on businesses and the UK economy. According to Technology Secretary Peter Kyle, the benefits are clear and span various key aspects for consumers, businesses, and the economy as a whole. 

• For consumers: One of the main advantages for users will be the reduction in waiting times at bars and shops. By eliminating the need to present physical documents, the age verification process will be faster and more efficient, allowing consumers to spend less time waiting in line and more time enjoying their shopping experience. Additionally, the added convenience of not having to carry physical documents such as passports or driving licences will simplify users’ daily routines, making their everyday lives easier. Another crucial benefit is the increased security, as unnecessary personal information, such as addresses, will not be disclosed. This will be achieved through the use of digital identities that only share the strictly necessary data to validate the user’s age, effectively protecting their privacy. 

• For businesses: For businesses, the adoption of digital identities will contribute to improvements in operational efficiency by reducing delays and waiting times during age verification. This will streamline internal processes, allowing for faster and smoother service. On the other hand, the push towards digitising the age verification process will provide economic support and increase productivity within the sector. The improved efficiency and process optimisation will allow businesses to save not only time but also resources, leading to improved financial results. 

• For the economy: The proposed measures will also have a significant macroeconomic impact. The adoption of digital identities is expected to boost the UK economy by £4.3 billion over the next decade. This growth will stem from operational savings generated by increased efficiency, as well as from higher productivity across the commercial sector and other areas related to digitisation. 

Certification and security standards: Ensuring trust in digital identities 

The adoption of digital identities for age verification in alcohol purchases in the UK not only depends on the availability of technology but also on trust in its security and reliability. To ensure that the use of digital identities is secure and suitable for all users, the UK government will establish a set of security standards through the Digital Identity and Attributes Trust Framework (DIATF). 

This framework will provide a clear and rigorous foundation for digital identity service providers, ensuring they meet high levels of security and privacy. By adhering to these standards, providers will ensure that digital identities are verified in a proper and secure manner, protecting both consumers and businesses that use these technologies. 

In addition, more than 50 certified providers will be available to pub owners and retailers, offering a wide range of options to choose the digital identity solution that best suits their needs, encouraging competition among providers. 

The certification and security standards established by the DIATF ensure that, by opting for age verification through digital identities, both businesses and users will be protected by a robust system that guarantees the integrity of personal data and the security of transactions. 

Use of Biometric Authentication 

One of the most significant innovations in the proposal is the use of biometric authentication. This technology adds an extra layer of security to the system, ensuring a reliable link between digital identities and their respective users. 

Biometric authentication provides a higher level of certainty than traditional methods by preventing the fraudulent use of digital identities by unauthorised individuals. 

Economic and security impact: A growing sector 

The digital identity sector is experiencing significant growth. In 2023, it generated £2 billion in revenue and employs over 10,000 people in the United Kingdom. This market continues to evolve, driven by the increasing demand for more secure, faster, and convenient identity verification solutions. 

Criticism on the exclusion of age estimation technologies: The case of FAE 

One of the points of controversy in the proposed age verification system in the UK is the exclusion of Facial Age Estimation (FAE) technologies. FAE is an artificial intelligence-based technology that uses algorithms to estimate a person’s age from their face in real time. This technology could significantly simplify the verification process, as seen in supermarket payments or accessing services that require quick age validation. 

However, the system proposed by the UK government is based on verified digital identities, which must be preloaded onto the user’s device and authenticated through biometric methods, such as facial recognition. Unlike FAE, which estimates age without the need for prior credentials, the government’s system requires a more robust and secure verification process. 

FAE is not covered by the DIATF framework or the UK’s Data Bill, which led the government to decide against including it in the current regulation. However, critics, such as Robin Tombs, CEO of Yoti, argue that this decision could have negative repercussions for the UK’s tech sector, as it would miss a key opportunity to develop and adopt an innovative technology. According to Tombs, this could benefit other countries, such as Spain and India, which are advancing in the use of facial age estimation technologies. 

2024 consultation outcome: Acceptance and challenges to overcome 

In the 2024 public consultation, 72% of respondents expressed support for amending the Licensing Act 2003. 

However, the consultation also revealed that a comprehensive framework regulating all age verification technologies has yet to be developed, excluding tools such as FAE. This poses challenges as the government works on implementing the new legislation, requiring a balance between technological innovations and security and privacy requirements. 

Option to retain physical IDs: Flexibility in the transition 

Although digital identities are presented as the preferred option for age verification, physical IDs will remain valid proof of age. This means that consumers who choose not to use digital identities can continue to use passports, driving licences, and other traditional documents to purchase alcohol. This flexibility ensures individual freedom of choice. 

Another criticism that has emerged regarding the project relates to the government’s promotional campaigns, which have implied that traditional identification methods are obsolete. Some argue that by promoting digital identities as the only modern solution, the government may be discouraging the use of physical documents and creating a more complicated transition for those who are not familiar with new technologies. 

Centralisation vs Decentralisation: The UK’s model and Self-Sovereign Identities 

The UK’s digital identification system will be overseen by a centralised authority that will certify and regulate digital identity service providers through the UK Digital Identity and Attributes Trust Framework (DIATF). This model contrasts with decentralised approaches, such as those based on self-sovereign identities (SSI) and verifiable credentials, where no central authority oversees the process. In these systems, users have greater control over their personal data, allowing them to manage their identity more autonomously and privately. 

Nonetheless, authorities state that digital identification will not be mandatory, and citizens will still be able to use other documents, such as utility bills and driving licences, to verify their identity.