10. Memorandum submitted by
the Department for Work and Pensions
1. Thank you for your letter of 3 February
2004 about the inquiry you are undertaking into all aspects of
identity cards, including the practical aspects of the Government's
proposals. My Department's response is set out below. I would
of course be happy for a Minister or officials to be called to
give evidence to the Committee in due course, if this would be
helpful.
2. In your letter you asked me to provide
information on two very important issues; how the DWP expects
to use identity cards to provide access to benefits and services;
and what the practical issues are likely to be. It must be remembered
that the initiative is still in its early stages and our responses
are fairly high-level. We are discussing with the Home Office
the impacts on costs and benefits for DWP.
3. My Department has supported the Identity
Card initiative from the outset, and we see tangible benefits
flowing from the use of identity cards in relation to access to
benefits. DWP already has robust identification procedures in
place, but we see the development of a single cross-Government
standard of identity checking as a significant aid in the fight
against fraud. Identity fraud losses are currently assessed up
of £50 million a year.
4. Having said this, I do not think that
provision of an identity card should be compulsory from the outset
of its introduction. I favour a gradual approach to take up. As
well as building public confidence in the card and providing a
sensible period to ensure that the system is working properly,
this will ensure that DWP customers are not disadvantaged in their
dealings with the Department in the take up period should they
not have an identity card. When a decision has been made on compulsion
we anticipate that possession of an identity card would be required
to confirm not only identity but also an individual's status in
the United Kingdom including the right to work. It would thus
help govern access to Social Security Benefits.
5. The application of the identity card
must be aligned to the DWP Modernisation Strategy if is to provide
help with access to benefits. Use of the identity card in identity
verification must link in with the fact that many of our customers
(for example those over pension age) do not need to visit DWP
premises. We envisage the use of electronic back-room checks with
the identity card database for most of these customers. Where
customers do attend DWP offices (under the new Jobcentre Plus
process) the introduction of an identity card check will be particularly
useful in the fight against fraud.
6. Turning to the practical issues involved
in the introduction of an identity card, the data standards and
authentication levels applied in obtaining an identity card will
be crucial in assessing its value. DWP data standards are very
robust and could have wider application across Government.
7. The charging regime for identity cards
is being discussed with the Home Office. A reduced or nil cost
for some benefit recipients and low income groups are being considered
to ensure that the more vulnerable members of society are not
discouraged from applying for a card during the take on period.
8. One aspect on which we are working closely
with the Home Office is the impact the choice of the unique numerical
identifier for the identity card will have on our supporting information
technology systems and databases. As you may know we share joint
ownership of National Insurance Number issues with the Inland
Revenue. We are working closely with the Home Office and the Inland
Revenue to progress this issue.
9. Another important issue is data disclosure
provisions. DWP's access to the identity card database need to
be sufficient to facilitate the counter fraud benefits we envisage
following the introduction of the Identity Card.
10. DWP officials are continuing to work
closely with Home Office officials to take forward the important
issues set out above. Discussions have been positive.
Rt Hon Andrew Smith MP, Secretary of State for
Work and Pensions
March 2004
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