They gave up on banning VPNs.
They did a consultation and found that the overwhelming majority of children aren't using VPNs to bypass age checks, they're just going to websites that don't implement them.
What they said is true. The outcome of the consultation [1] states, "We will not ban or age-gate VPNs." It also states, "... children typically circumvent age assurance with less sophisticated methods rather than with VPNs, using VPNs more for security and privacy."