The problem with Digital I.D isn't what this current Government intends to use it for, but what the next one will do with it.
It's primary purpose is to stitch all digital records together with a unique reference number. This gives the authorities/government full oversight into every aspect of your life. Currently that data is held by different departments and organisations which don't communicate effectively. A Digital I.D will make this process seamless.
There is no scenario in which access to, and control over this data, won't be abused.
Mission creep will mean that the requirement to scan your I.D won't just be limited to a job application. It will be necessary (under the excuse of "safety" or "security") to use it in ever more places and situations.
These, I have no doubt, will include access requirements to virtually anywhere you will go.
Scan to walk into a train station or airport. Hire a car. Use a library. Visit a hospital, doctor, dentist. I can see it being a requirement to enter shopping centres and stadiums.
If it can be recorded by your I.D, you will be required to scan it.
It won't take long before suggestions are made to use it within the criminal justice system, likely as a means of "community sentencing". Why give unpaid work, when it would be so much cheaper to simply use a Digital I.D to restrict and control someone's movements as a form of court punishment. A court mandated exclusion from travel, or access to serving places. Even banning an individual from purchasing alcohol if they have been involved in an offence where alcohol has been cited as a contributing factor, drink driving or ASB for example.
This would very quickly allow the same thinking to be used as a solution for other "problems". Net Zero has been enshrined in law, a Digital I.D will absolutely be used to "help" meet that target. So perhaps your EV won't power up on days the local council block your I.D. Or your access to public transport is blocked to help manage passenger numbers. Or on a more sinister level, if your online activity suggests you may be attending a protest, your Digital I.D could be blocked to prevent you travelling there.
This is the problem with a Digital I.D.