If something like this was in widespread use it would have much more impact since countries would see whole swathes of the internet immediately go dark when they make stupid laws.
Wouldn't work with somewhere like China, but the UK might still be capable of being shamed.
I wouldn't put it passed them to require the digital ID to access the internet passed curfew.
How is someone supposed to benefit from a thing whose only function is to reduce the friction against forcing them to correlate their otherwise-independent activity against their will?
For governmental services, I use it for things like logging into health care services. Where I've used it for checking my prescriptions, and communicating with my doctor. If I had kids I would have used it for contact with the school. An other governmental use is tax filling and tax returns which comes around every year, and this is just scratching the surface.
When it comes to non governmental usage, it is mostly bank and bank adjacent usage. I do use it to log into my different banks, my stock broker, and insurance providers.
The solution we have in Norway, is not perfect and one of the persistent problems, are that not everyone can get one, and since it is used a lot by the government, not having it, makes you a bit of a second class citizen. I do believe that they are finally doing something about that, and that the system will be redone a bit next year, so even if the banks don't like you. You will be able to get one.
You and the provider may have different ideas about where that line is drawn.