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Licensing Act 2003 (Mandatory Licensing Conditions) (Amendment) Order 2026

My Lords, I thank the Minister for presenting this SI and for continuing the work that the previous Government started. I declare my interests in that I was chair of the Select Committee that reviewed the Licensing Act 2003 and I currently chair the National Proof of Age Standards Scheme board. I also thank the Minister for meeting me yesterday; it was extremely helpful and I am grateful to have had that opportunity.

I welcome the regulations before us this afternoon, both personally and as chair of the Proof of Age Standards Scheme board. It is particularly appropriate, for the reasons that the Minister has set out, that physical

cards will exist alongside the digital dPass. As a community interest company, PASS places the interests of young people at the heart of everything we do. We are mindful of the fact that, during Covid, there were not many options or opportunities open to young people to access cinemas, bars, restaurants or indeed any aspects of the night-time economy in general. We therefore welcome the regulations and wish to see them implemented but, as was the case with the Licensing Act 2003, the key to proper implementation will be how Section 182 guidance is drafted. In that regard, I will write giving fuller detail, but I would like to raise a number of issues this afternoon.

A particular concern is the potential weakening of PASS’s established recognition in the Section 182 guidance. I seek an assurance from the Minister and the department that cards bearing the PASS hologram will continue to be named as the preferred physical proof of age method. The Minister set out the reasons why the physical PASS card and others of that nature have been so successful. Many people use them: older people often do not drive or have passports and younger people are not necessarily old enough to have passed their driving test, so there will continue to be a market in that regard. I further ask the Minister that no change affecting recognition of the PASS hologram will be made before OfDIA has provided its supporting analysis and PASS and others have had a proper opportunity to respond.

I am delighted to say that PASS has reviewed its standards and will amend them from October this year to ensure that any PASS card capable of being used as evidence to create a digital proof of age is issued to the medium level of confidence required by the new secondary legislation before us, although I would emphasise that existing compliant cards should continue to be accepted when presented directly as physical proof of age. The revised guidance should also give appropriate recognition to dPass-enabled services once certification and registration are complete. The additional operational matters identified through subsequent review should be addressed in the statutory guidance or, if necessary, confirmed by the Government before Parliament.

There are other technical issues on which I have said I would write to the Minister, but I shall raise two now. I think I am right that Parliament was not consulted on the statutory guidance under Section 182, so I think it is appropriate that we make the point now before that guidance is drafted and adopted. There are two brief points of clarification on which I will write and give further detail. The first is to confirm that no manual visual inspection is required, so that the regulations are to be understood as requiring secure technological validation, not a member of staff simply looking at a phone screen. I can go into more detail when I write to the Minister.

The second is to clarify what the DVSP, to which the Minister referred, must deliver to the responsible person. The draft regulations require the relevant DVSP to

“deliver identification to the responsible person that reaches at least a medium level of confidence”.

It would be very helpful if that classification could be further clarified. We would welcome confirmation in the upcoming updated mandatory licensing conditions guidance and the Secretary of State’s Section 182 guidance

that the meaning of the words “deliver identification” includes the delivery of a verified age result or age attribute. There are a number of other specifications that are very technical. I would like to write to the Minister on that.

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Finally, the Minister referred to a key aspect of the new regulations and dPass going forward: it remains the retailer’s responsibility to ensure that no under-age sales take place. I am very grateful to the WSTA—the Wine and Spirit Trade Association— which is a member of PASS and has written to me separately, as it raised a specific instance in this regard.

One other issue I would raise, which the Minister referred to, is training. It is absolutely imperative that the retailers are allowed enough time to train the staff. The Minister will be aware—his own department has the figures—of the number of violent incidences that take place at the point of sale when the sale is prevented because age is unable to be verified or the identity proved.

The legal clarity offered by the legislation is, of course, welcome, but there are significant implementation considerations for retailers, and there will be a cost to contracting providers or building in-house DPoA systems at scale. Retailers will be required to ensure that they comply with the wider licensing obligations in operating digital proof of age—for example, ensuring that sales are not made to intoxicated persons, which is already a crime, and that proxy sales are not taking place. This means that human interaction could still be required in a significant number of transactions in addition to general consumer familiarisation with the digital proof of age process at the point of sale.

As I referred to, because of the current environment of heightened retail crime and staff safety concerns, limiting staff customer friction at the point of sale will be a key concern for retailers. Many of these practical considerations will be clarified in the updated Licensing Act Section 182 guidance, and it would be helpful to know what that might be in advance and the date of publication of the legislation coming into force. I just make a final plea to the Minister that government communications have regard to and support retailers in this transition.