This is what i think might work:
The govt needs to stay within the European Court of Human Rights ruling (Goodwin v UK [2002]). which found was a breach of a post-operative transsexual’s Article 8 rights (concerning privacy) to have to show a birth certificate revealing information about sex when applying for insurance, mortgages and pensions and thus facing potentially intrusive questions.
This problem can be solved simply by allowing anyone to obtain a short form copy of their birth certificate, for a minimal fee, with the sex field removed or left blank.
Sex would remain recorded at birth and kept in the register and individuals could also have a long-form or short-form birth certificate showing their sex.
This would meet the demands for a low cost, accessible and demedicalised process which advocates of ‘self ID’ have called for. It would also accommodate people who identify as non-binary. This would make the issuing of GRCs redundant and so this system should be ended.
This approach of allowing “prefer not to say” on documents and records should be considered for all official purposes. Anybody may call themselves Ms, Mr or Mx, wear what they like, change their name and adopt masculine or feminine styles and this can be reflected on ID, which may not need to carry their sex at all. However shared single sex services would remain reserved for those who are willing to accurately declare their sex and share with others of the same sex (with unisex provision wherever possible for those for whom sex based rules are problematic).
People should be free to express their gender identity any way they chose. But the government should not be in the business of assessing the authenticity of anyone’s self defined feeling of gender identity.
hiyamaya.net/2020/06/20/not-self-id-but-removing-red-tape-for-gender-recognition-what-are-could-that-mean/