Well, no. They don't.
It appears that not even the Security Service like the idea unless the cards are unforgeable - which they won't be.
The truth is that whatever security measures you put onto those cards, someone will find a way round it because of the value of having access to something that is considered absolute proof of identity.
The case for the massive public investment in a huge (and probably ineffective) bureaucracy is fading by the day. Will this policy survive?