Data on ‘gender identity’ will be collected in the 2021 census for the first time.
The Office for National Statistics (ONS) says that new questions asking about sexual orientation and gender identity will be optional.
Since the Gender Recognition Act 2004, fewer than 5,000 people have legally changed their sex.
The Government recently closed its consultation on reforming the Gender Recognition Act to make it easier for transgender people to legally change sex.
It asked about removing the requirement for a medical diagnosis of gender dysphoria.
The Scottish Government has announced that it wants the Scottish census to allow people to choose non-binary – neither male nor female – options.
Women’s rights campaigner Jess Stewart said: “If they add a third option, we’ll be confirming it’s a gender identity question and normalising that language that says human beings are not male or female.”