Not surprising
I think this is a problem that's been brewing for years. How do you define and then establish identity?
If I produce a birth certificate and claim to be the person named on it does it prove that I am? No, in fact the certificates specifically say that they are not a proof of identity?
What about National Insurance Number? That is also not a proof of identity.
Some businesses want a recent utility bill or bank statement to prove your identity; the utilities and banks want to go paperless. And such documents would be fairly easy to forge. I had a couple of gigs at one time, one with a real security printer where all waste had to be securely destroyed on site with records kept and the other printing utility bills where waste was overflowing from a skip in the car park.
The identity card would have solved this wouldn't it? More likely it would have brought these problems to light a few years earlier.
Lots of organisations want verified identity but want to throw the problem of verification over the wall for someone else to deal with.