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After much thought I feel ID cards have their place, we kind of have them now as places expect you to have a drivers licence or passport to prove ID or age. My problem with digital is that it isn't necessarily secure and by the time it's been done it'll be significantly over budget.
What about people without smartphones? - they do exist, and this scheme will risk marginalising some of them.
I think the scheme needs careful thought. One ID which the different organisations can scan to get data relevant to their needs only. NHS, tax, proof of age, proof of address, national insurance etc. If the card was sufficiently smart it could hold emergency data, allergies/ health issues, next of kin etc.
I'm comfortably into my second half century. In time I'll give up on passports and driving licences. I'll probably give up on smartphones as well (the screen's too small to see easily already). What then? I won't be able to prove my existence via the accepted means. I worry that the digital destitution will lead to physical destitution and isn't something I look forward to.
Digital isn't a panacea.
A physical ID card backed up with appropriately integrated government services rolling out over time would get my vote, but I'm confident it won't happen.