I can see some justification (sorta) for not making it mandatory, but saying it won't improve citizens lives is complete rubbish. Having one login for all government services would massively improve the efficiency, especially if other departments can share data (with consent ala oauth) with each other. Even in the NHS itself this would be a huge boon, if you get referred to two different NHS trusts they basically cannot see any other data. If all medical records could be linked to an ID (that is more sophisticated access control wise than the NHS number) it would actually be a huge boon for privacy/audit/logging.