House of Commons - Home Affairs

Select Committee on Home Affairs Written Evidence

21. Memorandum submitted by the Home Office

INTRODUCTION

1. This memorandum provides background to the government's decision to build a base for a compulsory national identity cards scheme which the Home Secretary announced to the House on 11 November (Official Report Column 171). The card scheme, to be phased in over a number of years, will include basic personal information, a digital photo and a "biometric" which can include iris pattern images and/or fingerprints. For most UK citizens, the card will take the form of a biometric passport card which will be issued when the passport is due for renewal. The Government expects that 80% of the adult population would have an identity card by 2013 if passports and, in due course, driving licences are issued on the proposed biometric basis. The card would become compulsory thereafter for all residents after a decision by the Cabinet and a vote in Parliament.

2. The aims of the scheme are summarised below:

— to tackle illegal working and immigration abuse;

— to disrupt the use of false and multiple identities by organised criminals and those involved in terrorist activity;

— to help protect people from identity fraud and theft;

— to ensure free public services are only used by those entitled to them;

— to enable easier and more convenient access to public services.

The identity cards scheme should be seen in the context both of the development of increasingly sophisticated technology and of international requirements to which the UK has an obligation to respond.

3. The Home Affairs Committee has undertaken inquiries on this topic before, the most recent being in the 1995-6 session.[17] We set out to show in this memorandum why the government has decided that now is the right time to introduce an identity cards scheme and how such a scheme would work.

4. Paragraphs 5-15 set out the results of the consultation exercise and other related studies. Paragraphs 16-37 expand on the aims of the scheme set out in paragraph 1 above. Paragraphs 38-50 set out the legal basis for the envisaged scheme and how the Government plans to proceed. Paragraphs 51-56 deal with costs, and paragraphs 57-65 explain the position on some of the issues most commonly raised about the scheme. The final section, paragraphs 66-67, describes the next steps to be taken. Annex A gives details of the way in which foreign nationals will be brought into the scheme and Annex B describes a potential scheme for different levels of card checks.

BACKGROUND

Consultation and research

5. In February 2002 the Home Secretary announced that he would publish later that year a consultation paper on what were then called entitlement cards. In July 2002 the Government published the consultation paper "Entitlement Cards and Identity Fraud".[18] In this the Home Secretary set out the aims of a card scheme that would provide a secure proof of identity as well as helping to demonstrate entitlement to services. To enable the debate to be as well-informed as possible the paper explained in some detail how a cards scheme might work in practice. The Home Secretary stressed, however, that: "Whether we go ahead with the scheme will be dependent on the assessed will of the people of the United Kingdom". The consultation exercise, which was carried out according to Cabinet Office guidelines, lasted until January 2003.

6. In parallel with this, the Home Office commissioned a quantitative survey by placing questions on attitudes to identity cards in the Research Services of Great Britain (RSGB'S) General Public Omnibus survey. Qualitative research in the form of focus groups was also carried out as were surveys among people attending demonstrations of the use of iris and fingerprint biometrics in Passport Offices. The focus groups were representative in terms of age and other demographic variables. There was also direct contact with diverse stakeholder groups, ranging from local government to groups representing travellers.

7. The consultation paper included 35 consultation points[19] on which views were invited. A total of 4942 responses to the consultation paper were received by the beginning of March 2003. Of those who expressed an opinion, 2602 (61%) were in favour and 1587 (38%) against. The remaining 48 (1%) were neutral. The government published its response to the 35 points on 11 November 2003.[20] The results of the consultation and research were published on 11 November as CM 6019.

Results of the research

8. Qualitative research commenced in November 2002 with 15 Focus Groups covering different income groups, located around the UK, and Black and Minority Ethnic groups. Findings confirmed that most people who participated were broadly in favour. Detailed findings can be found on the Home Office's website.[21] Following the results of this research we then commissioned quantitative surveys including the Black and Minority Ethnic groups.

9. The quantitative research was carried out in stages; the first, in December 2002, covered Great Britain, the second, in February 2003, used almost the same questions with one additional option, and also included Northern Ireland. In the second survey the results from Northern Ireland were analysed separately, and also weighted back to represent their actual incidence within the UK population. In both surveys the figures showed:

— 13% were against;

— 8% were unsure.

10. When Northern Ireland was analysed separately, the results were similar to the UK wide ones, with 76% in favour and 11% against. However, in Northern Ireland fewer respondents were "very much in favour" than in the whole UK sample (23% as opposed to 35%).

11. Separate quantitative research was undertaken with Black and Minority Ethnic groups in order to investigate further the views expressed by some focus group members that a card scheme would be discriminatory. The research showed that while some people in those groups did have this concern, more shared the same concerns as the white population eg about privacy. The respondents were divided into those of Black African/Caribbean, Indian, Pakistani/Bangladeshi and Chinese origin. There were differences between these groups, as shown below:

— Of Indian respondents, 79% were in favour and 15% against;

— Of Pakistani/Bangladeshi respondents, 62% were in favour and 25% against;

— Of Chinese respondents, 68% were in favour and 16% against.

In addition responses from those over 65 showed a higher proportion in favour (85%) than did those of younger respondents (78%).

From entitlement cards to identity cards

12. The phrase "entitlement cards" was used in the consultation paper and the Home Office research. However, results from the qualitative focus group research and comments received from members of the public showed a preference for the more familiar term "identity cards" over a phrase which most people associated with receiving benefits. This term has, therefore, been adopted in all subsequent debate on the topic.

Identity fraud study

13. In July 2002 the Cabinet Office published "Identity Fraud: A Study".[24] Identity fraud has been recognised as an important and growing problem which costs the UK economy an estimated £1.3 billion per annum. The study complemented the consultation carried out by the Home Office on entitlement cards. One of the study's conclusions was that the "creation of a single document (an entitlement card) could be beneficial in replacing the present `mosaic' of documents used to establish identity if accompanied by much more secure processes for the issue and use of the document."

14. Identity-related fraud is only a small part of the total assessed cost of fraud and error in the benefit system, but it possibly amounts to £20-£50 million per year which is a significant sum. There has been no up-to-date detailed study of possible savings to DWP once an effective comprehensive national identity scheme had been established but the total could amount to up to £100 million a year. These possible savings would come from the counter-fraud and process saving benefits related to the scheme.

15. Alongside the work on identity cards, the Home Office is leading on work with both public and private sector organisations to implement some measures against identity fraud which can be put in place in advance of an identity cards scheme. Examples of early progress on this include aligning the penalties for making fraudulent applications for passports and driving licences in the Criminal Justice Act 2003 and setting up in December 2003 a UKPS database of lost and stolen passports. UKPS is also running a pilot in 2003-04 to improve identity verification and counter identity fraud by using comparative information from public and private sector databases.

The Citizen Information Project (CIP)

16. On 6 January 2004 the Registrar General for England and Wales published a feasibility study into developing a UK population register, which would act as an index to existing records held in different databases. Ministers will not take a decision on whether to proceed with the project until further development work has been carried out. This is a different function from what is proposed for the National Identity Register, which would authenticate a single unique identity for each UK resident and maintain a record of that unique identity information in a new, secure central database.

WHY IS THE GOVERNMENT PLANNING TO INTRODUCE IDENTITY CARDS NOW?

17. During the course of the consultation many people asked what had changed since the previous debate and why identity cards would be the most appropriate response. One significant factor is that international developments, particularly as a consequence of the events of 9/11,mean that British citizens will increasingly need to possess secure biometric travel documents. The technology needed for this is already being developed in the UK[25] and will be used in passports in the future. The development of identity cards based on this technology is a logical next step, which will help to ensure that British citizens are not disadvantaged within the international community.

18. The Home Secretary stressed, in his foreword to "Identity Cards: The Next Steps" (published on 11 November Cm 6020), the impact of globalisation and its effects on society. People move between countries on a scale unthinkable 50 years ago. Nearly 90 million people each year arrive at UK ports. Technology has made our lives easier in many ways, but it has brought problems with it, in the possibilities it provides for organised and international crime. We have already indicated the estimated cost of identity fraud to the economy, and it is known that many terrorists use multiple identities. Many other countries, including most of our EU partners and the new EU accession states, use identity cards[26], and work is ongoing with the EU and the USA on enhancing the security of all travel and identity documents. Drivers in the UK are already familiar with the photocard driving licence, and most people are used to producing a variety of different forms of identity for anything from opening a bank account to renting a video.

19. The identity cards scheme will be built up in incremental steps,based wherever possible on existing work being carried out by the main delivery partners. For example, the UK Passport Service (UKPS) has a programme of work to improve identity verification and reduce identity fraud. The change programme is aligned with the Identity Card Programme. High-tech biometric passports will be able to build a base for a secure identity cards system.

20. With the increased security surrounding, particularly, air travel the UKPS has investigated the options available for placing electronic data in the Passport Book, and has, for some time, been considering the use of personal identity technologies such as biometrics to provide additional security whilst improving customer service. Advancements in personal identity technology, and biometrics, have enabled the UKPS to begin work on its project to record and store biometrics directly in the passport book and on the passport database- producing a biometric enabled passport book which will be issued from mid 2005.

21. A biometric is a digital record of a particular physical characteristic that is unique to each individual, such as fingerprints or the shape of a person's face. This technology has reached a sufficient level of maturity that it will make a significant step-change in countering fraud involving multiple identity. The result will be the creation of a single new record of identity tied permanently to an individual and capable of being used in any situation where identity needs to be established. The process of creating this record will be intensive. At the point of an individual's first enrolment we will undertake a very rigorous background check on the individual based on the information that they supply in the application procedure. This will include looking at their "biographical footprint" which would show, for example, what contact the individual has had with other Government departments in the past. Information on the nature of this contact would not be recorded on the National Identity Register.

22. The UKPS is initially implementing a facial recognition biometric (which can be taken from a passport photograph) in the British passport book in accordance with emerging international standards, in 2005. The UKPS will subsequently launch a passport card also holding biometric information. The card will be in a convenient to use, credit card size format. The UKPS is also considering the inclusion of a secondary biometric, either the image of the bearer's iris pattern or fingerprints, in a later version of the passport/passport card. The passport card will, in turn, be issued as the passport identity card from the beginning of the rollout period.

23. The UKPS (in collaboration with the Driver and Vehicle Licensing Authority (DVLA), the Immigration and Nationality Directorate (IND) and the Home Office identity card programme team) is also running a biometric enrolment project in 2004.[27] The trial will evaluate issues around biometric registration using face recognition, iris and fingerprint. Over six months it will enrol 10,000 volunteers using several locations (including mobile units) to ensure a representative coverage of the population

24. The US Enhanced Border Security and Visa Entry Reform Act of 2002 requires that countries which are in the US visa waiver programme (which includes the United Kingdom) have a programme to issue machine-readable passports that incorporate biometrics and that comply with applicable biometric and document identifying standards established by the International Civil Aviation Organisation (ICAO). As described above, the UKPS now has its programme of work in place to offer its customers passport books that would include a biometric identifier. The UKPS has presented its plans to the US to support the UK's continued participation in the US visa waiver programme. The US legislation refers to a biometric established by ICAO. The UKPS has been supporting ICAO to develop international standards for biometric information. ICAO recently nominated facial recognition as the primary biometric for travel documents with iris and fingerprint as backup but not mandatory.

25. All these factors, we believe, make this the right time for the UK to take a lead in producing a secure card, incorporating biometric technology. We have the opportunity not merely to accept international requirements, but to be in the vanguard of developing secure methods of demonstrating identity.

WHY DO WE NEED AN IDENTITY CARDS SCHEME?

26. The identity cards scheme will benefit society through:

— tackling illegal working and immigration abuse;

— disrupting the use of false and multiple identities by organised criminals and those involved in terrorist activity;

— helping protect people from identity fraud and theft;

— ensuring free public services are only used by those entitled to them;

— enabling easier and more convenient access to public services.

Illegal migration and illegal working

27 An identity cards scheme, fully enforced, would provide more effective internal controls because every individual here legally would have a document that proved who they were and, if a foreign national, their immigration status. Specifically it would provide employers with a more reliable, quick and easy method of verifying identity and employment eligibility of potential employees, and ensure that they were able to comply with more certainty and ease with the requirements of Section 8 of the Immigration Act 1996.[28] It would also reduce the "pull factor"—the perception that, once in the country illegally, people can work and obtain benefits and public services with impunity.

28. If our communities have confidence in our immigration controls, they will be more welcoming of new arrivals, helping to promote a more cohesive society. It is also important to remember that lawful migration brings economic benefits (an estimated net fiscal contribution of £2.5bn per annum), and the government continues to encourage people to come to the UK to work legitimately.

Terrorism and serious and organised crime

29. A card scheme would disrupt the use of false and multiple identities by terrorist organisations. Serious and organised crime also misuses identities, for example in money laundering or in drugs and cigarette smuggling. If banks, building societies and other financial institutions were to do a full check on the identity card of those applying for new accounts, loans, mortgages and money transfers, by confirming the biometric on the identity card, it would be a deterrent and would close down loopholes which allow identity fraud, money-laundering and illegal transactions which support large scale and serious organised crime.

Reduced identity fraud

30. Identity cards will help to combat identity fraud because the register will be starting from the electronic equivalent of a blank sheet of paper, not an existing database. Any incorrect data in an existing database would not be imported into the register; the only way for an individual to have a record added would be by going through the full identity card registration process with all the checks that would entail. An identity card with a biometric unique to that person will, therefore, give an individual absolute confirmation that they are the owner of an identity. Lost and stolen identity card numbers can be put on a "stop list" so that the card can be taken out of circulation if another person attempts to use it fraudulently. If biometric checks become widespread as a means of verifying identity, identity theft would be significantly reduced, because once an identity had been registered, any attempt to change it would show up automatically and would therefore lead to an investigation. If the scheme were set up and an identity thief had, on the rare occasion, already stolen an identity, it would allow the genuine owner to work with the authorities to put things right.

31. Another development which has the support of the government is the use of chip and PIN (Personal Identification Number) for credit and debit cards. This is a finance and retail industry initiative that aims to reduce plastic card fraud by requiring card transactions to be authorised by the customer keying in a PIN rather than signing a receipt. The use of PINs will make it harder to use stolen cards. However, we need to be aware of the potential consequences of this as stolen cards become of less value to fraudsters, who may instead attempt to steal someone's identity to obtain a card in their name. This possibility makes it even more important that there is a reliable method of proving identity before credit or debit cards are issued.

Preventing fraudulent access to public services

32. Across public services there are already many situations in which statutory services require an individual to produce proof of identity, for example, in claiming benefits, in taking up a higher education place, applying for a student loan. An identity cards scheme would allow public services in particular to be able to check whether an individual's entitlement, for example to benefits, had expired or had never existed. Establishing an identity card scheme with special arrangements for the socially excluded and the elderly (eg offering an identity card at a reduced cost for certain groups) would give everyone a means of proving their identity in a way which many others take for granted. An identity card would give everyone a recognised Government-confirmed proof of identity, would mean that an individual did not need to provide many different cards or pieces of paper, and would combat impersonation and identity fraud.

33. As an example, the Department for Work and Pensions already has systems for verifying identity before allocating a National Insurance number (NINO) or allowing access to the benefits system. The process can also be applied to any UK nationals who for some reason have not previously been allocated with a NINO. The Jobcentre Plus infrastructure ensures that such a service is readily available to all adult NINO applicants. Best practice identity verification drawn from UKPS, DWP and DVLA expertise could provide a single effective national system of establishing identity, and an identity card scheme would become increasingly useful as a means of simplifying the Government Departments' business processes. For example, the possession of an Identity Card and a check against the supporting database would allow DWP staff quickly to verify an individual's identity.

34. In time, possession of the Card would confirm an individual's status in the UK, right to work and assist in access to, for example, Social Security Benefits. Identity Card presentation could become a prerequisite to accessing those of the Department's services involving face to face contact if the Government decides to move to the compulsory stage of the scheme. However none of the Department's customers would be disadvantaged in their dealings with DWP during the take up period should they not have an Identity Card and entitlement to benefits would always remain subject to relevant conditions of entitlement.

35. Benefits would accrue as the scheme rolls out. A widely held card could for example prove a deterrent against those travelling to the UK to work illegally. A scheme which covered everyone would also help individuals who do not need a driving licence or passport to prove their identity in all spheres of their daily life. While a service might not be able to rely on the card to determine entitlement, it could give a clear indication that someone is not entitled to a service, eg because of their immigration status.

36. However, only with a compulsory scheme would the full benefits in countering terrorism and organised crime be delivered as it would have a 100% coverage rate of all those with a legal entitlement to be resident in the UK. It would also encourage services to make use of the card scheme more quickly and would help avoid inconsistent implementation. A compulsory scheme would be non-discriminatory—everyone should have a card and so would soon become accustomed to using it. Likewise, employers and other service providers would be more confident that they could expect everyone to be able to produce a card.

More convenient access to services

37. Identity cards will provide every person legally resident in this country, including foreign nationals, with an easy and secure way of demonstrating their right to be here, of asserting their place in the community and of accessing both public and private services. Across public services there are already many situations in which statutory services require an individual to produce proof of identity, for example, in claiming benefits, in taking up an HE place, applying for a student loan, or in applying for social housing. An identity card could also be used to prove identity for the use of non-statutory services. From contact with the utilities, to getting "cash back", to using libraries and renting videos, individuals are already being asked to provide proof of whom they are. An identity card that was recognised by the range of service providers across both the public and private sectors would considerably ease an individual's life. This will be particularly important for those people who do not have a driving licence or a passport, and who may currently experience difficulties in proving their identity, and therefore their entitlement to services, in those situations where proof of identity is routinely asked for.

38. Our liberties will be strengthened if our identity is protected from theft, if we are guaranteed access to the services to which we are entitled, and if our community is better protected from terrorists and organised criminals, and from those who seek to abuse the immigration rules and public services.

HOW WILL THE SCHEME BE IMPLEMENTED?

39. We intend to proceed, by incremental steps, to build a base for a compulsory national identity cards scheme. Experience shows that the "big bang" approach is not the way to introduce a complex programme involving new technology and major business change. We will proceed in two stages:

First stage

40. Once the Office of Government Commerce (OGC) has confirmed that the programme is ready to proceed[29] , we will publish draft legislation to enable the scheme to be introduced and pave the way for the establishment of more reliable means of proving people's identity. The identity cards scheme will require:

— Establishing a National Identity Register;

— Developing more secure passports and subsequently passport cards and photocard driving licences based on biometric technology;

— For those who do not need a passport or driving licence a voluntary plain identity card. This would not become compulsory until the further Parliamentary decision—see below;

41. The costs of these steps, and all start up costs, will be met from charging or from existing departmental budgets.

42. The introduction of plain identity cards on a phased basis will, on current plans, start from 2007-8 and, together with the incremental roll-out of biometric passports and in due course driving licences, might be expected to cover 80% of the economically active population within five years.

43. There will be close work across Government to develop effective technology particularly on biometrics and to introduce systems to ensure that biometric data can be collected, stored and used effectively. This includes a 6 month project, referred to earlier in this memorandum, which is being run by the UK Passport Service to evaluate the time taken to record and recognise biometric information, ie, face, iris and fingerprint. This project had its origins in a study undertaken for the Home Office by the National Physical Laboratory, the recommendations of which were taken into account in the UKPS project. NPL's study was also published on the Home Office website on 11 November.

Second stage

44. If the conditions were right, this first stage phased roll-out could then be followed by a move to a compulsory card scheme in which it would be compulsory to have a card—though not to carry one—and to produce a card to access public services in ways defined by those services. In the case of those services for which the devolved administrations have responsibility (eg health and education), decisions on production of a card to access those services would be a matter for them.

45. The move to compulsion would require full debate and a vote in both Houses of Parliament. Clearly the Government would only take this step after a rigorous evaluation of the first non-compulsory stage, when it was confident that everything was in place to enable the scheme to work successfully, that its benefits outweighed any costs and risk, and that it was fully affordable within future agreed spending plans. In particular, we would want to be confident that:

— Roll out during the first phase has already delivered significant coverage of the population;

— There is clear public acceptance for the principle of a compulsory identity card which would be used to access free public services. This would already have included a scheme of charges based on cost recovery and subsidy for those on low incomes;

— Use of the card for access to free public services would not prevent people without cards from accessing emergency services, and those on low incomes and vulnerable groups would not be disadvantaged;

— The scheme would make a further significant difference to tackling fraudulent access to free public services, and to tackling illegal working at an acceptable compliance cost to business; and

— The technology is working and public services have implemented the technology and business changes necessary to take full advantage of the scheme.

How will we issue identity cards?

46. As we suggested in the consultation document published in July 2002, it is intended that the scheme will be based on the existing processes for issuing passports, and subsequently passport cards, and driving licences and, as such, will be incremental in its approach. As existing holders of these documents, most people will obtain a card when they first renew either their driving licence or their passport, and their new document will be one of a "family" of identity cards. They will not have to obtain an additional identity document because they already hold a passport or driving licence. If they hold both a passport and a driving licence they will be able to use both documents as an identity card. However, although the scheme will be based on existing processes, the data generated on application and enrolment will be specific to the identity cards scheme and will be stored on the National Identity Register, not on any existing database. It is also important to bear in mind, as we show in paragraph 20, that the background checks involved in card issue will be very thorough.

47. For those who do not drive or do not travel abroad, and therefore do not have a driving licence or a passport, a plain identity card will be available. As already discussed, this would not be compulsory until the appropriate further Parliamentary decision has been taken. For foreign residents—including EEA nationals—coming here for more than 3 months[31] the card would take the form of a more secure residence card than that currently available.

48. A National Identity Register of basic personal information will be created as part of the scheme. The data will be generated specifically for this register, not taken from existing databases. The Register will link each individual's identity record to biometric information, which may include facial recognition in the form of a digital photograph, iris patterns and fingerprints. The information could be stored on a chip on the card as well as on the National Identity Register. The uniqueness of biometric information will help prevent people's identities being stolen and also can confirm securely a person's identity when a card is checked. There will also be other enhanced back office checks as there are now to check the "historical biographical footprint" to ensure that applicants are not trying to link their biometric to another person's identity.

How will cards be used to check identity?

49. The card scheme would be flexible enough to allow different ways of checking the Register with services using the appropriate checks for them. These range from the regular visual check of the photograph and the card's security features through to the highest level of check using biometrics to confirm with the National Identity Register that the card has been genuinely issued and that the biometrics information of the holder, card and the record held on the Register match. A potential scheme for the various level of checks is set out in Annex B.

Will a card be needed to access services?

50. References to services in this context mean those public services which are free at the point of access. Across public services there are already many situations in which statutory services require an individual to produce proof of identity. An identity card would mean that an individual would not need to provide many different cards or pieces of paper, and would combat impersonation and identity fraud. As well as providing a more convenient way for those entitled to services to access them, an identity card will also help to prevent unauthorised access to services. In the first—voluntary—stage identity cards would not be mandatory for verification of identity, though as the cards become widely held we would anticipate that more public and private sector services would start to make use of them. If we proceeded with stage two of our proposals, it would eventually become compulsory to have an identity card. At this stage, organisations would be able to specify when an identity card must be produced to access their services, subject to approval where necessary by Parliament or the devolved administrations. In the devolved administrations the authorities responsible for services which are devolved would make the decisions about whether, and if so how, services would be linked to identity cards.

51. No one would ever be refused medical treatment in an emergency or emergency social security benefits nor would vulnerable groups be refused critical services such as access to hostels or refuges because they were unable to produce an identity card. The cards scheme will be designed to help people access services to which they are entitled.

How much will this cost?

52. Most people will join the scheme when they apply for or renew their driving licence or passport for which charges are already levied. The minimum charge to obtain a 10 year passport is £42; from March 2004, the full cost of obtaining an initial 10 year driving licence will be £38. In practice the cost that many people currently pay for these documents is around £8-£10 higher when taking account of the cost of photographs and services which check that forms have been completed correctly and the right documentation enclosed. These costs would be included in a national identity cards scheme. Recent research confirms that the majority of people would be willing to pay something for an identity card which has individual and social benefits, a long-lasting document which increases the convenience to them of proving their correct identity.[32]

53. We recognise that paying for anything places a burden on the individual and therefore we will minimise the cost and inconvenience. However, the developments in incorporating biometric information into documents such as passports mean that it is almost inevitable that the cost of these documents will rise. If we did not implement a wider scheme but concentrated purely on implementing more secure passports and driving licences including biometrics, current best estimates suggest that the 10 year cost of passports would rise to around £73 and driving licences to around £69.

54. Under the national identity cards scheme, our best estimate at this stage is that:

— a 10 year plain identity card would cost most people in the order of £35;

— a combined passport/identity card would cost £77; and

— a combined driving licence/identity card would cost £73 (though holders of both documents would only pay the full cost for the first one they renewed).

In other words this represents around £4 more per person spread across 10 years than if we did not implement the wider scheme and simply included biometrics on existing documents.

55. This would fund free cards for all 16 year olds and a reduced charge of £10 for those on low incomes. We are looking at how those who have been in retirement for some time over the age of 75 could obtain a lifelong card, requiring no further payment and are also looking at whether plain identity cards could be paid for by instalments.

56. For very frail and elderly citizens it would be possible to issue a non-biometric card (for instance those with severe learning disabilities who are in residential care or those over 80).

57. These cost estimates include a contingency factor.

KEY ISSUES

58. A number of issues were raised during the consultation exercise, and subsequently, where it might be helpful to the Committee to have more information on the Government's position.

Civil liberties

59. Access to a cardholder's record on the identity cards database without the cardholder's consent would be subject to legal and procedural safeguards and independent oversight and complaints procedures. Access would only be authorised in specific circumstances, for example the investigation of serious crime.

60. There will be no new powers for the police to stop someone and demand to see their card.[33] However, the police[34] already have the power when an arrestable offence is involved to make checks (including biometric checks) to determine someone's identity if it is in doubt. In the case of a non-arrestable offence, if the police are not satisfied with the name and address supplied or if the person refuses to provide this information, they have powers of arrest. There are similar powers in Scotland.

61. Our proposals are compatible with the European Convention on Human Rights (other signatory countries operate similar schemes) and with the Data Protection Act 1998. We will continue to work with the Information Commissioner on the data protection aspects of our proposals.

Privacy

62. The legislation will allow the cards scheme to be used by any services to establish identity with the consent of the card-holder, but with strict limits on the information available. Organisations using the National Identity Register to verify identity will not be able to access other personal information, for instance health or tax records, via the Register.

Security

63. When cards are issued, the detailed background checks will be of the highest level of assurance that the identity used by the applicant belongs to them and will be based on the recommendations set out in the Cabinet Office Identity Fraud study. Because of biometrics and the rigour of the database, an individual's biometric could only be registered once, and as long as the biometric is checked a fraudster will not be able to use someone else's card or register multiple identities. To protect data on a card that has been issued, the card will contain a "chip" on which some information could be held in a format which protects data from being read except by authorised readers.

Compulsion

64. We intend to proceed by incremental steps, to build a base for a compulsory national identity cards scheme, with a final decision to proceed to a compulsory card later when the conditions for moving to a compulsory card are met.

65. We have no plans to make it compulsory to carry an identity card; this was ruled out before the consultation began and was clearly stated in the Consultation Paper. It will be mandatory in time for foreign nationals (other than those coming for short visits) to get a card to reside here legally, or in the case of EEA nationals to demonstrate their status. The Immigration Service has powers to ascertain the identity of people suspected of being in breach of immigration rules, including a power of arrest.

Function Creep

66. "Function creep" is the term used to describe the way in which technology, or an application, takes on a function which was not envisaged originally. The identity cards scheme will have clear rules and safeguards to ensure that there is no such expansion without proper justification and authorisation so that the range of information held by the identity cards scheme and the statutory purposes of the scheme could only be amended following Parliamentary debate.

NEXT STEPS

Programme management

67. The Government is determined to ensure that the development of a national identity cards scheme is managed to the highest standards, and that the major business change and IT challenges which we face are dealt with effectively. The Identity Cards Programme Board has, therefore, been set up, under the chairmanship of the Home Office, to co-ordinate and drive forward the Government's proposals for the development of a national identity cards scheme, The Board is chaired by the senior responsible owner, currently John Gieve, Permanent Secretary at the Home Office, and brings together the main Departments and Agencies involved in the delivery of the Identity Cards Programme.

Legislation

68. A draft Identity Cards Bill was announced in the Queen's Speech. The draft Bill will set out the legal framework to enable identity cards to be introduced throughout the United Kingdom and to build a base for a compulsory scheme. The legislation will enable an identity card scheme to be introduced that will include:

— Establishing a National Identity Register—and data-sharing powers to conduct background checks on applicants for cards and rules for accessing the Register;

— The use of passport cards and driving licence photocards as identity cards and therefore proceeding toward more secure passports and driving licences based on biometric technology with personalised specific identifiers;

— For those who do not need a passport or driving licence and choose to take it up, making available a voluntary plain identity card. This would not, of course, become compulsory (or be mandatory for access to services) until the appropriate Parliamentary decision;

— Introducing mandatory biometric identity documents for foreign nationals coming to stay in the UK for longer than 3 months.

The government's intention is to publish the draft Bill in early 2004. This will be after the Gateway 0 Review has been completed, which is scheduled for the end of January. The government will introduce a substantive Bill following completion of scrutiny on the draft Bill and when Parliamentary time allows.

January 2004

17 HC 172-I 26 June 1996, and see also the then government's response Cm 3362 August 1996 Back

18 Cm 5557 Back

19 Annex 1 of Cm 5557 Back

20 On the Home Office website www.homeoffice.gov.uk/comrace/identitycards/index.html Back

21 www.homeoffice.gov.uk/comrace/identitycards/index.html Back

22 References to "in favour" include "in favour" and "very much in favour"; the same is true of responses against. Back

23 See note 6 above. Back

24 www.cabinet-office.gov.uk/cabsec/2002/idfraud.htm. Back

25 See, in particular, paragraphs 21-23 below. Back

26 In the EU, only the UK, Ireland and Denmark do not have identity cards. All the accession states except Latvia and Lithuania have identity cards. Of the EEA states which do not belong to the EU, Norway and Iceland do not have cards and Liechtenstein does. Switzerland, which is not an EEA member, but which benefits from free movement under the Treaties, does have identity cards. Some EU countries are planning to introduce biometrics in their national identity cards, but our proposals are more comprehensive than anything currently planned within the EU. Back

27 This was announced in Home Office News Release 356/2003 on 3 December 2003 Back