The report recommends far more than that.
Reading the report, I can see that it recommends more than that.
In the encryption section, their first test is that new software doesn't make children more vulnerable. That is actually a tough ask, as not only are you are asking for the platforms to prove a negative in advance, you are asking them to certify their code works as expected, and is 100% bug free with no unintended side effects.
The second test is that all children's accounts have e2e disabled, unless you can prove the unprovable above. That will mean any group chat with a child in it will need to be unencrypted, as you can't do e2e on only one end. So no need for surveillance to break the encryption, just have the police sign up with a child account and join the group!
In the Government and regulators section it states that if these conditions are not met, then the platform should be regarded as breaching the duty of care.
In the online harm section it says that those that breach the duty of trust should face GDPR style massive fines, management liability and ISP blocking. That is a pretty big stick to wave.