Digital ID will be mandatory in order to work in the UK, as part of plans to tackle illegal migration.

Prime Minister Sir Keir Starmer said the new digital ID scheme would make it tougher to work in the UK illegally and offer “countless benefits” to citizens.

The government has said it wants to ensure the scheme works for those who are not able to use a smartphone and will launch a consultation on how the service will be delivered later this year.

Opposition parties have criticised the scheme, with shadow work and pensions secretary Helen Whately arguing it would “make law-abiding people have to jump through more hoops and employers have more red tape”.

Sir Keir’s government has been under pressure to tackle the issue of illegal migration, with more than 50,000 migrants arriving on small boats since Labour came to power.

Announcing his plans for the new digital ID scheme, Sir Keir said: “I know working people are worried about the level of illegal migration into this country.

“A secure border and controlled migration are reasonable demands, and this government is listening and delivering.”

He added: “Digital ID is an enormous opportunity for the UK. It will make it tougher to work illegally in this country, making our borders more secure.

“And it will also offer ordinary citizens countless benefits, like being able to prove your identity to access key services swiftly – rather than hunting around for an old utility bill.”

Separately writing in the Telegraph, the prime minister said: “There is no doubt that for years, left-wing parties, including my own, did shy away from people’s concerns around illegal immigration.

“It has been too easy for people to enter the country, work in the shadow economy and remain illegally.”

He added that Labour was being forced to counter the “rise of the populist right”, noting the increasing popularity of Reform UK posed a challenge for both the Conservatives and the left.

The consultation for the scheme is expected to last three months, with legislation being introduced to Parliament early next year.

There will be no requirement for individuals to carry their ID or be asked to produce it, Downing Street said, though digital ID will be mandatory as a means of proving right to work in the UK by the end of the Parliament, expected to be 2029 at the latest.

The new digital ID will be held on people’s phones, in a similar way to contactless payment cards or the NHS app.

It is expected to include a person’s name, date of birth, nationality or residency status and a photo.

The consultation will also consider whether additional information such as an address should be included.

Employers already have to carry out checks on prospective candidates.

Since 2022, they have been able to carry out checks on passport-holding British and Irish citizens.

There is also a Home Office online scheme which can verify the status of a non-British or Irish citizen, whose immigration status is held electronically.

However, it is understood that officials have been exploring whether a digital ID scheme could reduce the use of fake documents and provide a more consistent approach to verifying workers’ identity.

Conservative shadow work and pensions secretary Helen Whately said she could “see the rationale” for ID to make sure people are living in the UK legally but that her party was “opposed to mandatory, compulsory ID cards”.

She told BBC Radio 4’s Today programme the Labour government’s proposals would “make law-abiding people have to jump through more hoops and employers have more red tape, while in the grey economy illegal working will just go on”.

“That’s why it is not an answer to the problem of stopping the boats,” she added.

Liberal Democrat MP and tech spokesperson Victoria Collins said: “Liberal Democrats cannot support a mandatory digital ID where people are forced to turn over their private data just to go about their daily lives.”

A Reform UK spokesperson said that government plans were a “cynical ploy to fool voters that something is being done about illegal immigration”.

The SNP-led Scottish government has said it is “opposed to the introduction of any card that is compulsory to have, compulsory to carry or that anyone can demand to see, including that of a digital ID”.

First Minister of Northern Ireland, Michelle O’Neil, called the proposal “ill-thought out” and “an attack on the Good Friday Agreement and on the rights of Irish citizens in the North of Ireland”.

The government said the roll-out would eventually make it simpler to apply for services like driving licenses, childcare and welfare – as well as streamlining access to tax records.

It added that the new scheme will “send a clear message that if you come here illegally, you will not be able to work”, deterring people from crossing the Channel in small boats.

Sir Keir set out his plans for the new digital ID scheme and defended his party’s approach to immigration in a speech at the Global Progressive Action Conference in London, attended by leaders from more than 20 countries, including Australian Prime Minister Anthony Albanese and Canadian Prime Minister Mark Carney.

Sir Keir told the gathering of left-leaning politicians that they must “look ourselves in the mirror and recognise where we’ve allowed our parties to shy away from people’s concerns”.

“For too many years it’s been too easy for people to come here, slip into the shadow economy and remain here illegally,” he said.

“It is not compassionate left-wing politics to rely on labour that exploits foreign workers and undercuts fair wages.”