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By 2012, it is estimated that 80% of workers will have the card or a combined driving licence or passport. The Home Office hopes the scheme will be compulsory by 2014.
On Thursday, Mr Blunkett said the ID cards would probably be free for young people and there would be concessions for the elderly and those on low incomes.
He said the biometric system proposed would end multiple identities and give a boost to the fight against terrorism and organised crime.
2008: 80% of economically active population will carry some form of biometric identity document Estimated cost of £3.1bn Consortium of companies in UKPS trials led by Schlumberger