The government says the cards are intrusive and ineffective Labour have failed in attempts to get compensation for people who bought ID cards, which are set to be scrapped.
They say thousands of people who voluntarily spent £30 on cards did so in “good faith” and should be refunded when next renewing their passports.
But they lost a vote in the Commons during a debate on proposed legislation to abolish the cards.
Ministers argue that cardholders were aware that they would be invalidated in the event of a change of government.
Both coalition partners have long opposed ID cards and, before the election, the Conservatives warned people thinking of applying for a card that they would not be able to use it under a future Tory administration.
Legislation to scrap ID cards and dismantle the National Identity Register is currently being considered by Parliament.
Should the bill become law, which seems inevitable as it is backed by both the Conservatives and the Lib Dems, ID cards will be invalidated within a month.
In that instance, Labour says those holding cards should get compensation as a matter of “justice”.
“There is basic fairness here,” shadow home affairs minister Meg Hillier told MPs.
“We don’t see why the taxpayer should have to pay out yet again.”
Damian Green Immigration Minister
“This credit would give some comfort to those who have paid £30. Those who bought in good faith from the trusted Identity and Passport Service have been diddled frankly by this government.”
Labour’s Denis MacShane, a cardholder himself, said his money was effectively being “confiscated” and said if someone’s house had been taken by the state, that would get recompense.
But SNP MP Pete Wishart said it was “tough luck” on card owners as they had made an informed choice to buy one.
“We have to be absolutely and abundantly clear with this – ID cards are exclusively and solely a New Labour creation,” he said. “All other parties in this House made it absolutely clear that we would have nothing whatsoever to do with them.”
Rejecting calls for compensation, Immigration Minister Damian Green said the scheme had cost £292m but fewer than 15,000 cards had been issued – equivalent to £20,000 per card.
“This is by any standards a scandalous waste of money which lies squarely at the door of ministers in the previous government,” he said.
“We don’t see why the taxpayer should have to pay out yet again.”
An amendment to the Identity Documents Bill proposing a £30 rebate was defeated by 113 votes.
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