LONDON (Reuters) - Britain will introduce digital driving licences later this year in a push to use data to transform public services, the government said on Tuesday.

The licence will be held in a new GOV.UK digital wallet on smartphones and it will enable users to easily prove their age when buying age-restricted items as well as proving a right to drive.

Security features built into smartphones like facial recognition will ensure digital documents are secure even if a device is lost, the government said.

Other credentials issued by the government such as veteran cards and criminal record checks will be added by the end of 2027, it said, while physical documents would also remain available.

The wallet will come alongside a government app, due this summer, that will make using services like applying for childcare or reporting a lost passport easier.

Science Secretary Peter Kyle said the GOV.UK wallet would mean that every letter or identity document received from the government could be issued virtually.

"For people who choose to use GOV.UK Wallet, they will find it easier to prove they're entitled to benefits or check their age when buying alcohol or DIY equipment, with more security and trust than ever before," he said.

"Crucially, it also opens huge opportunities to make interacting with public services much easier by putting people in control of their own data."

A government review published on Tuesday said the full digitisation of public services could result in more than 45 billion pounds ($55 billion) a year of savings and productivity benefits.

Digital driving licences already exist in Australia, Denmark, Iceland and in some U.S. states.

($1 = 0.8174 pounds)