The UK Government has announced plans to introduce a national digital ID system with mandatory use for right to work checks, expected before the end of this Parliament.
Although right to rent has not yet been confirmed as part of the mandatory rollout, ministers have indicated that tenancy checks are also under review.
News of the so-called ‘Brit Card’ was met with widespread debate. Ministers say the GOV.UK digital wallet will make right to work checks faster and more secure, and that it could also extend to right to rent. But critics argue it risks creeping surveillance, exclusion of those without digital access and further complexity for employers and landlords already grappling with compliance rules.
The changes will not take effect immediately, but the consultation scheduled for later this year signals that organisations should begin preparing for a move towards digital-only verification, potentially by 2029. Right to rent may follow, though that remains subject to consultation. For employers and landlords, this means preparing for another major shift in compliance obligations at a time when civil penalties for breaches are already at record levels.
Digital ID Proposals for Right to Work
The new digital ID scheme will provide every UK citizen and legal resident with a free digital identity held in a GOV.UK digital wallet. The digital ID will be the authoritative proof of who someone is and their residency status, containing their name, date of birth, nationality or residency status and a photo.
The Government intends to make digital IDs mandatory for right to work checks by the end of the current Parliament, which runs until 2029.
While references have been made to rental checks, the Government has not yet confirmed that right to rent will be included from the outset.
A consultation later this year will inform decisions about delivery, scope and the exact information that digital IDs will hold. The consultation is expected to focus on:
- The information fields to be included in the digital ID
- How the GOV.UK wallet will operate in practice
- How non-smartphone users and digitally excluded groups will be accommodated
- How the new system will interact with existing share code processes
- The timeline for rollout across right to work and potentially right to rent checks
Following consultation, the Home Office will develop detailed rules, legislative changes and guidance. Employers can expect a phased rollout of mandatory wallet checks for right to work, with right to rent decisions still to be taken.
Implications for Right to Work and Employers
The direction of travel is towards a single digital check replacing today’s mixed system of manual document checks, share codes and ID service provider routes. Employers would instead verify a government-issued credential from the applicant’s GOV.UK wallet. The aim is to simplify the process, reduce the risk of forged or fraudulent documents and improve audit trails for enforcement.
Until new legislation is passed, the existing right to work rules continue to apply. Employers are required to follow the Employer’s Guide, which sets out three permitted methods:
- Manual checks of original acceptable documents
- Digital identity service provider (IDSP) checks for British and Irish passports
- Online share code checks for individuals with eVisas or other digital status
Share codes remain central for non-British and non-Irish workers. Employers must continue to obtain a valid share code, access the official Home Office portal, confirm the photo matches the individual and retain the profile page as evidence.
The penalties for employing an illegal worker remain unchanged. Employers face fines of up to £45,000 per illegal worker for a first offence, increasing to £60,000 for repeat breaches. The statutory excuse only applies if the check is completed in the prescribed way and evidence is retained. The digital ID system is designed to make this simpler, but employers will still carry legal liability for carrying out checks properly.
Employers should take practical steps to prepare:
- Review current onboarding processes and map where digital ID checks will sit
- Plan for a period of overlap where share codes and wallet credentials are both in use
- Ensure audit trails and record-keeping policies are updated to capture wallet checks
- Factor in accessibility for employees without smartphones or digital access
- Begin planning data protection impact assessments to cover new data flows
The Future of Share codes and eVisas
For the time being, share codes remain the backbone of the system for both right to work and right to rent where individuals hold digital status. IDSP checks for British and Irish nationals also remain permitted. eVisas continue to replace physical biometric residence permits, and expired BRP cards cannot be used for checks.
The consultation and eventual rollout will determine how digital IDs interact with these existing processes. In practice, wallet checks are likely to coexist with share codes in the short term, before potentially replacing them as the default method.
DM Perspective
The digital ID proposal has far-reaching implications for compliance, recruitment and housing. While the Government presents it as a simplification measure, the practical reality will depend on how it is implemented and how organisations adapt. The promise of centralisation is clear: a single digital wallet should, in theory, provide employers and landlords with an authoritative proof of status. Yet liability for compliance will not shift. The statutory excuse will still rest with the organisation, and the onus will remain on employers and landlords to follow the process exactly as prescribed and to retain evidence.
Any efficiency gains will only materialise if organisations take the opportunity to redesign their processes. Simply grafting a wallet check onto legacy onboarding or letting systems risks carrying forward the same errors and inefficiencies that undermine compliance today. A digital ID may reduce forged documents, but it does not automatically create efficiency unless it is embedded properly within wider systems.
Inclusion also remains a significant concern. A substantial number of individuals either do not own smartphones or have limited digital access. If the system fails to accommodate these groups, the risk is stalled recruitment processes, delayed tenancy agreements and potential claims of discrimination. Employers and landlords will need to plan alternative routes to ensure that checks can be completed consistently for everyone.
Right to rent, although not yet formally included, looks increasingly likely to follow right to work into the digital wallet ecosystem. For landlords and agents, that means treating this as an inevitability and ensuring processes can flex between employment and tenancy checks without duplication. Preparing now, rather than waiting for confirmation, will reduce disruption later.
The most strategic move organisations can make is to use the consultation window as preparation time. Reviewing current systems, updating contracts with third parties and carrying out data protection impact assessments will create the agility needed to adapt once the wallet becomes live. Those who treat this as an opportunity for forward planning will be far better placed to handle the transition than those who delay until the changes become mandatory.
The critical insight is that digital ID will not remove employer or landlord liability. What it will do is reshape how that liability is managed. The real advantage lies in redesigning compliance frameworks so that, when the wallet is introduced, it acts as a streamlined trigger rather than a disruptive overhaul. Organisations that take this approach will be the ones to turn a compliance burden into a smoother, more resilient process.
Need Assistance?
For now, the rules on right to work and right to rent remain unchanged. Employers and landlords must continue to follow existing Home Office guidance and retain evidence of checks in the prescribed way. But with digital ID moving closer to reality, the smart approach is to use this period to get ahead. Reviewing policies, updating contracts and mapping current processes against likely future requirements will make the eventual transition far less disruptive.
Given the complexity of compliance and the potential penalties for mistakes, speak to our compliance specialists top discuss what steps to take now and how to plan for the changes ahead. We can help with assessing risks, training personnel and ensuring your systems are ready to accommodate a digital ID regime when it becomes mandatory.
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.
