In case you missed it, the article's not about the government but about the Lib Dem party's internal conference. The Lib Dems do indeed seem sympathetic but lack the power to change anything at the moment.

The Labour government, as you say, could change the legislation, so the fact that they haven't says quite a lot about how sympathetic they really are (i.e. very little).

The government seems quite sympathetic to trans rights but their hands are tied by existing legislation.

Lying through your teeth.