E-man, I don't mean to sound insensitive to your position, and I do agree that being required to carry an ID is somewhat bothersome.
Here is my stand on it though, in the US we are already required to carry ID - if you want to drive or purchase something without cash you have to have an ID. You can't function in the US society without one unless you rely solely upon public transportation and always make sure you have cash on hand for purchases.
It's not a law, but the principal is already in position. We have to carry ID to live our lives normally - from that standpoint our lives won't change.
I don't know how it works in the UK, except what I read earlier that you don't need to carry a license to drive. If you try that here they take your car. I prefer to carry my ID - another one won't make a difference, just another piece of plastic in my wallet. If someone wants to see it - I show it. No biggie.
On the other hand, I don't see how it's going to help - like seeker said, the bad guys will find a way around it.
My point isn't that it's a good/bad idea, my point is if they do this it's not so much different that what we have in the US now - and I'm not suffering for it.