ID cards will save businesses "millions"

ID cards will save businesses millions of pounds, Home Secretary Charles Clarke has insisted.

The government has been rocked by criticism of its controversial ID cards scheme. Earlier this week former MI5 chief Dame Stella Rimington said that nobody in the security services would be pushing for the cards because they could be forged.

But writing in the Financial Times, Clarke claimed the cards will not only help solve crime and check whether an individual is entitled to government services but will also bring major benefits for business.

He wrote: "The government believes the private sector would be the biggest financial winner from ID cards with up to £425m of benefits."

Clarke said the cards will allow higher value transactions to take place online and help companies speed up checks on customers and new staff. He highlighted banks, airlines and telecoms operators as companies that could benefit.

He added: "By using the scheme, businesses can expect significant benefits. It will allow them better to prevent and detect fraud, verify identity and speed up processes that are now time consuming."

He said the most sophisticated card readers needed for this would cost £750 but that there will be lower cost options.