An exercise in pointlessness
The government said "The Bill will no longer define specific types of legal content that companies must address. This removes any influence future governments could have on what private companies do about legal speech on their sites, or any risk that companies are motivated to take down legitimate posts to avoid sanctions" which is a long-winded way of saying they're doing nothing about lawful but awful posts. Any future government can just change the law again anyway.
Social media companies can be fined if they don't follow their own terms of service so that's hardly going to be a challenge for them. In the very worst case they can just change their TOS and avoid a fine.
So in other words the bill is legally enforcing what is current practice and no more. It seems not upsetting GBeebies viewers is more important than stopping online bullying or plotting someone's death, however in a nod towards dystopia facial recognition is permitted to identify minors, so I'm sure the government consider that a win.