Liberal budget quietly pushes for new digital ID system

Despite repeated promises that the government wouldn’t usher in a digital identification system, the Liberals appear to be moving ahead with one for Employment Insurance and Old Age Security.

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Despite repeated promises that the government wouldn’t usher in a digital identification system, the Liberals appear to be moving ahead with one for Employment Insurance and Old Age Security benefit claimants.

According to a budget note tucked away in the Liberals’ newly unveiled Budget 2025, the Department of Employment will reverse course and push for a digital ID process for claimants.

Without providing any legal background, the note proposed amendments to the Department of Employment and Social Development Act that would “enable the delivery of more integrated and efficient services across government.”

“These amendments would benefit all Canadians by enabling the development of more efficient and convenient government services,” reads the budget note.

“Modernizing legislative authorities to support information sharing and digital services would particularly benefit groups facing barriers due to outdated, paper-based processes, particularly seniors, newcomers, persons with disabilities and rural residents.”

Digital ID systems have long been criticized by privacy advocates, as they often require large amounts of personal information, including banking information, biometric data, and vaccination records.

Once consolidated, such systems make fertile ground for a centralized surveillance state, making it much easier for invasive government control.

Canada’s privacy commissioner sounded the alarm of having large swaths of data online via digital platforms in a 2024 report, citing “limited trust, particularly when it comes to social media companies, and growing concern about how personal information is protected in the digital age.”

The report also noted the rapidly increasing, complex and sophisticated nature of personal data breaches, “including state-sanctioned ones.”

The Budget 2025 amendment summary goes on to say that such amendments will also benefit Canadians by “reducing the burden of repeatedly providing personal information across government services.”

It also purports to help “lower-income people” access income support programs and benefits.

“Digital literacy gaps among seniors, connectivity issues in rural and remote areas, and language barriers for newcomers can create obstacles to navigating digital platforms and accessing online government services,” it reads.

The Department of Employment first began hiring external consultants last year

to centralize benefits claims through a digital ID system after estimating that Canadians currently access more than 60 different systems to access more than 200 government services online.

All of these systems require usernames and passwords to access federal documents.

However, the Carney government says it is “committed to establishing a modern and secure approach to enable individuals and businesses to quickly and easily sign in and verify their identities to obtain federal services.”

“The use of an online service channel will remain voluntary and will not replace existing in-person, mail, or telephone-based services,” reads a Question Period note from May.

Meanwhile, research presented by the Privy Council in 2023 found it “may be difficult” to convince Canadians to hand over their personal information, given the level of distrust in public institutions.
“Widespread adoption of digital credentials by Canadians may be difficult to achieve, especially among cohorts of society who may already be somewhat distrustful of public institutions,” reads the report.