“Technology now makes it possible for digital identities to be more secure than physical ones, but we are clear that they will not be made mandatory.”

The virtual licenses could be used at supermarket self-checkouts, The Times said., external This allows customers to verify their own age without having to wait for an employee.

The new digital licenses will be rolled out later this year, the newspaper reported.

One possible feature could allow users to hide their address in certain situations, such as in bars or shops.

According to government figures, there were more than 50 million driving license holders in the UK in 2023., external

The digital licenses are likely to be rolled out as part of a “wallet” within a new government app called Gov.uk.

It is understood that the wallet is secured in a similar way to many banking apps and would only allow the genuine license holder to access it.

It will leverage features found on many smartphones, such as biometrics and multi-factor authentication, such as security codes.

The government is reportedly considering integrating additional services into the app, such as tax payments and benefit claims.

Other forms of identification could also be added, such as social security numbers. However, it is not expected that physical identification will be completely replaced.

The new technology appears to be a long way from being a comprehensive digital ID card – as previously called for by Sir Tony Blair and Lord William Hague.

At the time, the head of privacy campaign group Big Brother Watch said such a move would be “one of the biggest attacks on privacy ever seen in the UK”.

In 2016, the then head of the UK Driver and Vehicle Licensing Authority (DVLA) said digital driving licenses were being developed.

Virtual licenses are already used in Australia, Denmark, Iceland and Norway, as well as some US states.

In the European Union, every member state is obliged to introduce at least one form of digital ID by 2026.