Fujitsu to win digital ID cards contract despite Horizon scandal

In January, Fujitsu admitted that staff had known about bugs and errors for years and apologised for its role in the scandal.

The company said in January that it would not seek public sector contracts for the next two years as a penance for the Horizon scandal. Fujitsu said the tender process for the digital ID project began before it made the commitment.

Fujitsu is expected to be granted a contract to handle an incoming system that would scan digital IDs to check smartphone owners’ ages, meaning they do not need a driving licence or passport.

The Government is consulting on legal changes that would allow digital ID cards stored on a smartphone to be used when buying alcohol from shops, pubs and self-service tills.

Multiple companies will be able to issue the IDs but a single company is likely to provide the software to verify them through a smartphone app or barcode scanner.

The three-year contract is believed to be worth less than £1m in total but providing the technology could be useful when selling hardware such as supermarket tills, which is a significant business for Fujitsu.

The contract is being handled by the Proof of Age Standards Scheme (PASS), a Home Office-endorsed body that will handle the digital ID system.

PASS is a private company funded by the age verification industry, meaning that taxpayer money is not involved.

However, PASS is seen as a de facto regulator and the contract describes the system as “in effect strategically important national infrastructure”.

Fujitsu said: “The tender process for this work started in May 2022 and Fujitsu submitted a bid in response to the tender in June 2022. The tender process and being selected as preferred bidder pre-dated the guidelines that Fujitsu has put in place regarding bidding for new work with customers in the public sector.”

It is understood that rival companies are considering a potential contingency bid if Fujitsu’s role delivering the technology becomes untenable.

The Age Verification Providers’ Association (AVPA), the industry body for age verification which includes Fujitsu among its members, said PASS should consider the findings of the public inquiry into the Post Office scandal when making its decision. The inquiry’s findings are expected later this year.

An AVPA spokesman said: “We have worked with the Proof of Age Standards Scheme to reach a consensus across industry for the best technical mechanism to enable digital IDs, certified by PASS, to be universally accepted in any supermarket, pub or casino in the UK.  

“Using digital methods for age verification, both in person and for self-service tills, will not only be welcomed by a smartphone generation but also dramatically improve compliance rates and reduce the risk of conflict with staff.

“Fujitsu emerged in 2022 as the industry’s preferred supplier through an open competition, but any decision to award a contract is for PASS, and we would expect their board to consider the findings of the public inquiry as part of their due diligence.”