IfG.CC - The Institute for eGovernment

An independent analysis of the Government's proposed national identity cards scheme has concluded that the costing methodology produced by the Home Office is 'robust and appropriate' for the current stage of development.

The review, carried out by consultancy firm KPMG, also confirmed that the majority of cost assumptions for the scheme are based on appropriate benchmarks and analysis from the public sector and suppliers. It concludes by offering a number of recommendations for consideration 'as potential improvements to an already high quality outline business case'.

Welcoming the report, Home Office Minister Andy Burnham said: "We are confident in our cost estimates for the ID Cards Scheme and I am very pleased that confidence is shared by KPMG. There has been lots of discussion of the potential costs of identity cards, much of it based on misinformation and misunderstanding. This review provides independent confirmation that, while estimates will continue to be refined as new information becomes available, the methodology is fundamentally robust and reliable.

"Being able to prove who we are is a fundamental requirement in modern society, whether one is travelling, applying for a job, opening a bank account or performing any of numerous other everyday tasks. We need a secure way to establish that identities are real and not fabricated.

"No Government would introduce identity cards if the costs to the public are seen as unreasonable. For the individual, the Home Secretary has made clear that within current financial estimates the charge for a stand-alone ID card, valid for 10 years, will be £30. That is a fair price to pay for the identity protection that this system will bring."

The Home Office also published today a summary of work in progress on the areas of the ID Cards Scheme highlighted by the KPMG review.

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Notes to Editors

1. KPMG was commissioned to undertake an independent review of the costing methodology and key cost assumptions of the Identity Cards Programme Outline Business Case (OBC).

   Work was based on the latest version of the OBC available at the time of the review and considered any material cost changes up to the end of August 2005. The review analysed the following costs areas:

   • Card production costs and card life;
   • Enrolment processing times and resourcing;
   • National Identity Register (NIR) ICT costs; and
   • Identity Card take-up.

   These cost areas amount to about 60% of the total operating costs.

   The published extract of the KPMG Cost Methodology and Cost Review is available at www.identitycards.gov.uk together with a summary of the Home Office's work in progress on the areas of the ID Cards Scheme highlighted by the review.

2. The current best estimate is that the total average annual running costs for issuing passports and ID cards to UK nationals is £584m.

3. The Home Secretary Charles Clarke answered a Parliamentary Question announcing the charge of a stand-alone ID card in Parliament on Thursday 13 October 2005.

4. The 10-year stand-alone ID card, costing £30, will be available to those who choose not to hold a passport but will be valid as a travel document within the EU.

   The current best estimate for the average unit cost of the combined passport and ID card package is £93. This will give people the full benefits of having the most secure travel documentation as well as an ID card.

5. The Identity Cards Bill was published on 25 May 2005 and is available at www.publications.parliament.uk/pa/pabills.html. The Bill completed its Committee Stage in the House of Commons on 21 July. It has its Second Reading in the House of Lords on 31 October.

Quelle: Government News Network, 09.11.2005