Most countries have them and it's not for no reason.
Whether we can trust our government, though, is a different matter.
This sounds to me like fixing a problem we don't really have. At a time when we have plenty of genuine and serious problems that need fixing and aren't being fixed.
I'd rather see my tax money spent on tackling climate change, or decreasing hospital wait times, or hiring more teachers, or reducing dependence on Russian oil, or any of the other countless things that would make a genuine difference. Instead, we're going to blow a load of money on something that isn't going to improve people's lives (except maybe in a very negligible way) or make the world safer, and is probably going to erode my privacy and security.
Digital ID makes it easier for governments to mandat "real name" polcies when registering online (reddit, HN, etc.), because you already have a digital ID, and if you want to make a reddit account, you'll have to link it with your real name, and this was hard until now.
(FYI Not a UK citizen) But it does matter. If I go to a protest against the government will I be rejected of all those services since someone flagged my ID?
You shouldn't need id to vote or access healthcare.