As long as religious institutions are not forced to change their core fundamental doctrine, I see no problem with the UK Equality law. Since the law does not force the hiring of gay priests, female imams or rabbis and such, there is no issue here.
I do have to wonder what the Pope's problem is here. This affects only the secular jobs in connection with the church, such as accountants, secretaries, cleaning staff etc.. Why in the world would the church refuse to employ gays in these postions? Whatever happened to hate the sin, love the sinner? I guess that was just one more bull**** statement rammed down my throat during Catechism.
I think the Pope's reaction is utterly ridiculous and shamefully un-Catholic.