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It could be years before smart ID cards came to fruition said one expert, who advised the government on the ID scheme.
BBC: Technology trips smart card plans
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William Heath, chairman of public service research body Kable, is one of the most outspoken critics of the ID scheme and argues the current way of accessing medical services is the best.
BBC: NEWS | Technology | Call for ID cards to get smart
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But it is still heavily involved in the department's ID card scheme.
BBC: Home Office guilty of data breach
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Going further, he believes the ID card scheme in its current form could sound the death knell for government services online at a time when they are just beginning to be adopted by people.
BBC: NEWS | Technology | Call for ID cards to get smart
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Asked about whether Trident nuclear deterrent scheme and plans for ID cards could be cancelled as part of Labour's savings programme, Lord Mandelson said nothing had been decided or ruled out.
BBC: Labour 'must not lose its nerve'
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It has been reported that Alan Johnson, who replaced Jacqui Smith as home secretary in the recent cabinet reshuffle, might be considering a U-turn on ID cards, after ordering a review of the scheme.
BBC: Tories warn firms off ID scheme
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Microsoft and Google were early adopters of the scheme, and took seats on the board of the Open ID Foundation in 2007.
BBC: Typewriter,