Uh, no. It doesn't matter how many people get de-baptized, the C of E won't lose any seats in Lords. No other religion gets any seats from converts. In addition, no other religion gets automatic seats in Lords or Commons. For example there is not a seat in Commons or Lords that goes to a Quaker, with the specific Quaker being elected by the Society of Friends.
This was a two part item from what was first said. It's both permission to change religion (which is not the same really as de-baptism I'd think) plus certain seats reserved for specific & multiple religions.
I believe mandrina is saying the people of England, while it may not be "legal", have a way for people who do not like the Christian faith and no longer want to be a part of it, to separate themselves quite visibly from it.
For my own thoughts, a possible effect of this is eventually it leading to a possibly reformation of how much power the Church of England has in the UK. Not getting rid of it entirely, but I think it would cast doubts on how much power the Church has, and how the people don't like the way things are being run anymore.