Although encryptionpolicy formally lies within the jurisdiction of the Department of Trade and Industry, many believe DTI officials are under pressure from the Home Office, which in turn is under pressure from US security officials.
It is unclear how or if the new encryption standard will affect the U.S. government's controversial policy which severely restricts the export of encryption stronger than 56-bits.
On the other hand, there is no shortage of third-party software that enable policy-based disk encryption on iPhones and iPads (including, full disclosure, the market-leading Afaria software offered by my employer, Sybase).