Andy Burnham became prime minister on Monday, and within hours he scrapped his predecessor's flagship digital ID scheme, redirecting the £1.8 billion earmarked for it toward cost-of-living support. For millions of UK households struggling with rising bills, this is the first tangible sign of a government promising to focus on 'the daily priorities facing people across the country.'
The basics are straightforward: Burnham, the former Greater Manchester mayor, succeeded Sir Keir Starmer after Labour MPs decided Starmer had become an 'electoral millstone.' In his first major policy pledge, Burnham's office announced the complete abandonment of plans for a government-issued digital ID that had been mandatory for right-to-work checks and was envisioned as a 'one-stop app' for everything from childcare to tax returns. Instead, the time and resources will go 'where it's most needed, such as helping with the cost of living.' Burnham has also hinted at two further policies: raising the £12,570 income tax personal allowance, which has been frozen since 2021 and acts as a stealth tax, and introducing a £2 cap on bus fares nationwide, building on a similar scheme he ran in Greater Manchester.
“Andy Burnham scraps digital ID, hints at tax cuts and bus fare cap in first moves as PM.”
The background to these moves lies in the troubled history of the digital ID scheme. Starmer announced it ahead of Labour's conference last year, arguing it would crack down on illegal immigration and modernise the state. But it faced fierce opposition: nearly three million people signed a parliamentary petition against it, and a cross-party committee called its rollout 'nothing short of a fiasco.' The Office for Budget Responsibility estimated it would cost £1.8bn over three years – a figure Downing Street rejected without offering its own estimate. After initially watering down the plans to make them voluntary, Starmer's government left the scheme in limbo. Burnham's decision to scrap it outright fulfils a campaign promise and signals a sharp change in priorities.
For UK readers, the practical impact is immediate. The scrapping of digital ID means no compulsory app or card to access services or prove your right to work – a relief for privacy campaigners and those worried about government overreach. The redirected funds are intended for cost-of-living measures, though Burnham's team has not yet specified what those will be. On tax, raising the personal allowance would put more money in the pockets of millions of basic-rate taxpayers who have seen their tax bills rise as their wages grow but the threshold stays stuck at £12,570. A £2 bus fare cap would cut the current £3 cap introduced by Labour in January 2025, saving regular commuters hundreds of pounds a year – though allies caution it depends on Treasury approval.
Q: What happened to the digital ID scheme? Andy Burnham scrapped it entirely on his first day as prime minister. The £1.8 billion that was estimated to cost over three years will be redirected to cost-of-living support.
Q: Will my income tax go down? Burnham has said he heard 'frustration' about the frozen personal allowance of £12,570 and hinted he would like to raise it, but he has not committed to ending the freeze, which would cost billions.
Q: Are bus fares going to be capped at £2? Burnham's allies say he wants to introduce a £2 cap on single bus fares across England, but it depends on making a strong economic case to the Treasury. The current cap is £3.
What happens next? Burnham will name his cabinet later today, with speculation that Ed Miliband could become foreign secretary with a mandate to prioritise climate goals and a roadmap to restore the aid budget to 0.7% of GNI. On the domestic front, his first budget – likely in the autumn – will reveal whether the tax and bus fare pledges become reality. For now, the new PM has set out a '10-year plan' for the country, warning that 'we're not in the right place structurally.'
