McFadden stated the UK is technologically 'behind the curve' and could implement a system similar to Estonia's, which uses a unique identification number for various public services.
The Labour MP suggested a digital ID could prevent illegal work, addressing 'pull factors' for asylum seekers highlighted by France.
He noted that modern smartphone capabilities make a digital ID more feasible now compared to previous attempts by New Labour.
The proposal has received support from think tank Labour Together and former MI6 chief Sir Alex Younger, who also backed digital IDs to deter small boat crossings.