The EHRC – which enforces equalities law and provides guidance to policymakers, public sector bodies and businesses – published interim guidance earlier this year in response to the Supreme Court ruling.

The guidance stated that in places such as hospitals, shops and restaurants, single-sex toilets should only be used by people of the same biological sex.

That has sparked legal challenges, with critics describing the guidelines as “legally flawed” and “overly simplistic”. The EHRC has denied that the proposals would breach the rights of transgender people.

The interim guidance has since been withdrawn and replaced with a proposed code of practice, under which trans people could be asked about whether they should be accessing single-sex spaces based on their physical appearance or behaviour.

The code of practice must signed off by ministers to take effect.

Baroness Falkner said the code of practice “balances the rights of trans people as well as women”.

She said that the “greatest beneficiaries” of its approval by ministers would be the transgender community, describing it as a “pragmatic, practical, navigational tool as to what should happen in day-to-day situations”.

UK Women and Equalities Minister Bridget Phillipson, who received the code three months ago, said that her government was “carefully considering” the proposals.

Speaking in the Commons, she said ministers would ensure “that the proper processes are followed”.

A UK government spokesperson said: “We expect everyone to uphold the law and follow the clarity that the Supreme Court ruling provides.

“If organisations are uncertain as to how to apply the Equality Act, they should obtain legal advice.

“The EHRC submitted a draft code of practice to ministers, and we are working at pace to review it with the care it deserves.”