Transgenderism is at issue in Great Britain when it comes to census taking. In the last several months the issue of asking a person if their gender is currently what it was at their birth is quite controversial. After reading through the development of the questions I chose this article for you to read:
There have been court actions which have furthered the discussion and I am not sure that the discussion has ended. The very sensitive issue does come down to choice. A person may consider themselves to be transgender but wanting to officially out themselves on a government document is something to think about.
Census' exist for statistic making, generally thought to understand populations when it comes to representation in government as well as funding for various purposes.
Frankly, having witnessed how many people want to dodge census takers in the United States and in recent times, I'd say trust that information is confidential is not so good.