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I can see that.
They don't suggest to create an ID number, but rather a digital version of an ID card. There's already an NI number that most government services are tied to. There are provisional driving licences that you can get without knowing how to drive.
It doesn't seem that there's a problem that this digital ID will solve.
The public didn't ask for this. The senior civil servants who are the experts didn't suggest or advise on it. This is coming straight from a politician's think thank and vested interests, so of course no one is trusting it. It's the track and trace app all over again.
I wouldn't oppose a physical ID if they'd offer to print it and give to every citizen for free. But a mandatory app on your personal device is, as you said, a privacy nightmare.