This is not the state dictating to religion. This is the state not dictating to employers on behalf if emoloyees’ religion. To my mind they have no business doing so, no how. You are not guaranteed the right to the free exercise of religion against private organizations or individuals with whom you contract. You carry that power yourself.
Rather interesting since if the discrimination involved race - the media would be all over it as they believe that private businesses do not have the right to discriminate along racial lines no matter what rights the business might have in selecting clients. To the others: I realize that Britain does not have a First Amendment per se but one would think that as a supposed free society that it purports to be that they would have a similar guarantee or protection.