1 line below, you can read

Tech companies have said scanning messages and end-to-end encryption are fundamentally incompatible. Earlier this month, junior minister Stephen Parkinson appeared to concede ground, saying in parliament's upper chamber that Ofcom would only require them to scan content where "technically feasible". Donelan said in response to questions about Parkinson's statement that further work to develop the technology was needed but government-funded research had shown it was possible.

In practice, I doubt this will have any consequence on encryption, as the title of this post suggests.

The title here said E2EE is made impossible, I was simply saying that is untrue. Clarity matters. It says in the article they removed the bit about banning encryption or requiring back doors to it before it passed.

The rest sucks, as I acknowledged, and they want to make it easier to scan devices that would include messages that have been decrypted upon arrival. There's already spyware they does exactly that. However, that doesn't make it so that E2EE is impossible.