The EHRC said it had revised the code of practice after receiving ministerial feedback, alongside consultation responses and further legal advice. The guidance sets out how organisations should apply the ruling that sex in the Equality Act refers only to biological sex.

Earlier drafts, produced under former chair Kishwer Falkner, drew criticism from MPs and transgender advocacy groups, who argued they created legal uncertainty and risked excluding trans people from public life.

A government source said the revisions would not weaken the guidance but instead provide greater clarity for organisations delivering services. The updated code is expected to be approved next month by Bridget Phillipson before coming into force across England, Scotland and Wales.

Interim advice issued under Baroness Falkner – later withdrawn – suggested trans people should not use facilities aligned with their gender identity and, in some cases, not those matching their birth sex.

Under its current chair, Mary-Ann Stephenson, the EHRC has sought to refine the code to balance the protection of single-sex spaces with the rights of transgender people. Ms Stephenson said the changes were intended to provide “legally accurate, practical guidance” and ensure service users are treated with dignity and respect.

Critics accused the government of delaying publication, raising concerns about “negotiations and horse-trading”. Ministers rejected this, insisting the aim was to take a measured, collaborative approach.

Alex Parmar-Yee, the director of the Trans+ Solidarity Alliance group, said: “We’re glad that the government has heard how cruel and unworkable the EHRC’s original proposals were. A national bathroom ban under the guise of equality law is not in line with Labour’s values, and we hope any new guidance scraps that idea for good. 

“For trans people and inclusive organisations, the last year has been horrific – now we have to find out whether this government has taken its responsibilities seriously and fixed this mess or not.”