It says it will also disrupt the use of false and multiple identities which are used by organised criminals and in one third of terrorist-related activity, tackle illegal working and immigration abuse, ensure free public services are used only by those who are properly entitled to them and ensure British citizens are able to travel freely as international requirements for secure biometric identity documents develop.
"The national identity cards scheme will give people confidence, convenience and security in an increasingly vital aspect of modern life – proving and protecting their identity," said Home Secretary David Blunkett.
According to the Government, the identity cards scheme will build on ongoing work to make passports more secure by including biometrics – unique personal identifiers such as facial images, fingerprints or iris images.
Biometric identifiers combined with a secure database will, the Government believes, enable anyone's identity to be accurately verified and will prevent fraud and attempts to register multiple identities.
The scheme will cover all those resident in the UK, including all foreign nationals here for more than three months. Newly arrived foreign nationals will have to register from 2008. British citizens will initially enrol on the scheme as they renew their passports. Ultimately, when Parliament decides, it will become compulsory to register – though it will not be compulsory to carry the card.
A new executive agency will issue the identity cards, starting in 2008. It will incorporate the functions of the United Kingdom Passport Service and work closely with the Home Office's Immigration and Nationality Directorate.
A National Identity Scheme Commissioner will also be created. The Commissioner will have oversight of the whole scheme, including provision of information from the National Identity Register.
"Publication of the Bill marks a further step in the careful process of consultation and refinement which we began almost three years ago. This is an ambitious, long-term project and we are taking the time and care, drawing on outside expertise, to ensure we get it right," said Mr Blunkett.
The Bill replaces a previous draft published in April, and reflects some of the comments and criticisms made during the subsequent consultation period.
In particular, according to Home Office Minister Fiona Mactaggart, amendments have been made that will extend the remit of the National Identity Scheme Commissioner to cover oversight of the whole scheme, not just issues relating to provision of information from the Register. Amendments have also removed the bar to an individual's information contained in the access records of the Register being made available to that registered individual.
Both of these issues had been raised by civil rights groups, anxious about the privacy implications of the proposals.
The Government has also agreed to extend the prohibition on requirements to produce identity cards for services, so that neither production of an ID card nor a check would be lawful before Parliament agreed the necessary regulations. In addition it has confirmed that the absolute prohibition on making it compulsory to carry a card at all times remains.
Finally, the Government has amended the false documents offence in the Bill so that it does not include those who knowingly use false documentation to enter the UK to apply for asylum.
In general the Bill now provides for:
The estimated cost of introducing the scheme has now doubled to £5.5 billion, according to the Financial Times. The Government explains that some of this money would have to have been spent anyway, in order to bring UK passports up to the standards soon to be required for entry to other countries, notably the US.
The cost of failing to register with the scheme has also been clarified, amounting to £2,500. Other civil penalties being created in connection with the scheme include fines for not notifying the register of changes in personal details – such as name or address – and for not renewing the card.
"The penalties are outrageous," Phil Booth, spokesman for activist group NO2ID, told the Independent newspaper. "Millions of people oppose the plans; people are telling us that they would rather go to prison than sign up."
One point that has not been detailed in the proposals is the date on which the Government is likely to create legislation to make it compulsory to register.
The Home Secretary has said in the past that this is likely to be in 2012 or 2013 and that the legislation will be pushed through once a critical mass of the people have voluntarily received identity cards, or been issued with them when updating their passports.
However, the Bill published yesterday is quiet on this issue, leaving Ministers with the power to enact the "compulsory" aspects of the Bill at an earlier stage if so required.
"The Government of course takes seriously the privacy and freedom of people, the ID cards register will only hold the basic information which is already held by different departments and public bodies," said the Prime Minister at a press conference yesterday. "The biometric identifiers will ensure the privacy of that information is protected and correctly tied to an individual. Security of that database is also vital, and we are determined to get it right, which is why we have always said that ID cards will be introduced on a gradual basis, starting from 2008."
"I believe this is responsible government, not as some have called it 'Big Brother government'," he added. "I simply point out that without proper security then there can be no opportunity."
The Bill sets out the purposes for establishing and maintaining the National Identity Register. The list is finite, but goes beyond the themes of identity and entitlement that were initially put forward by Blunkett. They now include what appears potentially to be a very broad and general purpose: "for the purpose of securing the efficient and effective provision of public services."