Licensed premises in England and Wales can now accept digital ID to check that customers are aged 18 or over for the sale or supply of alcohol. This development has been brought into effect by the Licensing Act 2003 (Mandatory Licensing Conditions) (Amendment) Order 2026, which came into force on 15 September 2026.
These recent changes to the Licensing Act 2003 are most relevant to businesses in the retail and hospitality sectors which handle high volumes of age-restricted sales, such as shops, pubs, bars and nightclubs, and they are also relevant for events such as live concerts and festivals. Only secure digital identity apps provided by certified and registered Digital Verification (DVS) such as Yoti, Post Office EasyID and Luciditi will be accepted. Together, it has been reported that these apps have already surpassed 8 million downloads in the UK. Certified digital services check that an ID is genuine and belongs to the person presenting it, which can help to reduce the risk of fake or borrowed identification going undetected.
Before the changes, proof of age when purchasing alcohol had to be demonstrated using a physical document, as there was a requirement for the document to include a hologram or ultraviolet feature – both of which are not possible on a digital screen.
The new rules aim to preserve the privacy of customers, as they remove the need to carry physical documents that contain sensitive personal information such as names and addresses, which are not necessary to hand over to prove one’s age. Thus, digital ID can verify a customer’s age in a more convenient and efficient manner.
How will the new digital identification system work for alcohol purchases?
Customers purchasing alcohol will need to complete an authentication process to prove they are using their own ID. This involves scanning their face or entering a pin code.
In some instances, a photo will be sent to the bartender or person behind the till so that they can verify the buyer’s identity.
The app will then generate a QR code which will be valid for around 30 seconds, allowing the sale to go through.
What action can licence holders take to prepare?
Licence holders will not be required to accept digital proofs of age to sell or supply alcohol to customers, as traditional physical ID documents such as passports and photocard driving licences will continue to be accepted. Therefore, digital verification does not replace the existing forms of acceptable identification and will become an additional option for licence holders to voluntarily accept. Customers will also be able to continue using physical ID documents to prove their age.
However, Digital Government Minister Stephanie Peacock has highlighted that it may take businesses time to widely adopt the changes, as they may incur costs to implement the appropriate training policies, procedures and infrastructure to be able to accept digital ID.
Licence holders can review their existing age verification policies and procedures and decide whether to update them in light of the new rules. If they decide to adopt digital verification, they should follow government guidance and ensure their staff members know how to recognise certified digital credentials to maintain compliance with the guidance and legislation. It is also important for licence holders to maintain safeguards against misuse, particularly around underage access and fraudulent credentials.
What is the aim of the changes?
The changes aim to modernise the age verification process to better reflect changing consumer habits and the growing use of secure digital identity technology. The Home Office has stated it is focused on bringing licensing legislation in line with modern consumer habits. The new rules demonstrate a large shift in the UK, as businesses adapt to respond to legislative changes, consumer demand and generational changes.
Australia has operated a similar system since around 2021, whereby citizens are able to access a range of services using their digital ID, including banking and purchasing alcohol, reducing the need to use paper and maintain multiple separate accounts.
How is the use of digital identification being perceived in the hospitality and retail sectors?
Allen Simpson, the Chief Executive of UKHospitality – the main trade body for the hospitality industry in the UK, has described the digital proof of age system as, “a positive step for hospitality, providing greater flexibility and convenience for customers and businesses.”
Additionally, Julian David OBE, the CEO of techUK – the trade association that represents the technology sector in the UK, has stated, “we welcome the coming into force of digital identity as a trustway to prove your age when buying alcohol. This is a practical, everyday example of the value that robust digital identity services can bring to consumers, cutting friction and making lives easier, while maintaining high standards of security and privacy.”
The new legislation follows the outcome of the 2024 Alcohol Licensing: Age Verification Consultation, a UK government review whereby 72% of survey respondents supported using digital identities for age verification when purchasing alcohol. The government has highlighted that the new rules update the licensing framework while maintaining the safeguards designed to prevent underage alcohol sales.
However, concerns have been expressed regarding data privacy and personal freedoms in relation to the new digital ID system. There are also concerns regarding achieving consistent implementation across the hospitality sector, which is why clear guidance for licence holders will be essential. Furthermore, research conducted by the University of East Anglia has highlighted that digital ID could lead to greater state access to linked personal data and serious consequences when records contain errors.
There is also the possibility that some premises may not have the capability to verify a digital ID, and customers who do not carry physical ID documents would then need to be refused service despite having valid proof of age. Alternately, an apps-based system risks excluding people without suitable smartphones or the ability to use them.
Therefore, it is important that the changes are communicated clearly to both operators and consumers.
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