ID cards won't be a passport to the US

The admission came as Gordon Brown locked Britain into the controversial £5.7billion project.

The Government offered contracts worth up to £500million each to run the scheme, signalling the new Premier's commitment to ID cards.

However, the cards will not be recognised as official travel documents in the U.S., or the Caribbean, both popular destinations for British travellers.

Critics of the project said this refuted claims that ID cards would provide a single way for British citizens to prove who they are.

The contracts, which last up to ten years, will bind future Parliaments to ID cards, even though they are fiercely opposed by the Tory party.

The announcement finally confirmed Mr Brown's intention to forge ahead with the cards, despite concerns the final bill could be as high as £19billion.

While he was Chancellor, there was speculation he was planning to scrap the proposal, a flagship policy during Tony Blair's tenure.

But, despite ordering reviews of other unpopular Blair schemes such as supercasinos, 24-hour drinking and the relaxation of cannabis laws, Mr Brown is pressing ahead with the introduction of ID cards.

James Hall, chief executive of the Identity and Passport Service, confirmed the contracts offered yesterday would last up to a decade.

They are not due to start until late next year, which means they will run up to 2018.

Any new government seeking to escape them could face huge financial penalties, depending on the detail of the contracts.

"There is practically no technological contract in government that does not extend beyond the life of a existing Parliament," Mr Hall said.

"Therefore, by nature it commits future governments. That is the nature of long-term business contracts."

The cards, which will be issued alongside passports from 2009, are expected to cost around £100 each.

They will contain fingerprints - although not necessarily of all eight fingers and two thumbs - and a facial recognition scan.

Officials say they will be used to access government services, as well as open bank accounts and prove a person's identity when applying for jobs or making payments.

The IPS, which will oversee the project, said that it marked an "important milestone".

The smallest contract will cost £50million, while two are expected to be worth up to £500million.

IT service firms such as IBM, Accenture, BT and Fujitsu services are expected to bid for the contracts.

Shadow Home Secretary David Davis said: This project will do nothing to improve our security.

"This is why we have written to the Cabinet Secretary and the major companies likely to be involved in the bidding process putting them on formal notice that the Conservatives would scrap this costly white elephant."

The IPS said it had learned from past mistakes when letting government IT contracts, many of which have ended in disaster.

Contract extensions will depend on performance, with officials having the right to end agreements early if not fulfilling expectations.