Protecting security, tackling crime and coping with the complexities of a globalised economy require the introduction of a national identity card scheme, the home secretary has said.

Publishing the draft ID Cards Bill on Monday, David Blunkett said a "secure" system would benefit both the state and the public.

The legislation is intended to help the fight against serious and organised crime such as terrorism, drug trafficking, money laundering, illegal working and the £1.3 billion cost of fraud through ID theft.

A 10 year plain identity card would cost members of the public around £35, a combined passport/identity card would cost £77 and a combined driving licence/identity card would cost £73.

Blunkett also pledged that the cards would enable people to access services more easily, while preventing access to those with no entitlement. 

The public would also benefit from a watertight proof of identity for use in daily transactions and travel, he added.

"We are taking action now to prepare the UK for the challenges of the 21st century - the challenges of crime, security, the speed and nature of communication and international travel, and the number of sophisticated and complex transactions that we as individuals need to do effectively and securely," Blunkett explained.

"In an increasingly technologically complex and global world, correct identification has become critically important, and we want to ensure that UK citizens are properly protected and equipped to deal with this emerging world."

Civil liberties

Rejecting civil liberty objections to the cards, Blunkett said that the era of "trusting [people] to be who they say they are" is over.

"We must take the opportunity offered by new biometric technology which allows for a completely new level of verifying identity."

He added: "There has been a growing recognition that, rather than threatening our vital freedoms, ID cards would actually help preserve them."

The home secretary added that the introduction of ID cards would be an "ambitious, long-term project".

"Right across the world there is a drive to increase document security with biometrics, including the development of biometrics in passports and visas.

"We need to continue to play a leading role in shaping the way the world responds to the challenge of secure identification, so that our citizens can reap the benefits," he said.

Cost concerns

With the cost of the cards likely to be a key issue, Blunkett said the project would use "outside expertise and stringent reviews".

"Costs are inevitable if biometrics are included in passports and visas," he added.

"Recognising that the main cost will have to be met in achieving secure documents, the identity cards scheme will also provide a way of helping the least well off to have the same means of proving their identity as those who can afford to travel abroad."

The card will include basic personal information, a digital photo and "biometric information" which could include facial recognition, iris images or fingerprints.

The Home Office said that for most UK citizens, the card will take the form of a biometric passport which will be upgraded when it comes up for renewal.

At the same time, all EU and foreign nationals coming into the country for more than three months will have to obtain a biometric residence permit.

The government expects that 80 per cent of the economically active population would have an ID card by 2013 if passports are issued on the proposed biometric basis.