Her solution involves a new 12+ classification, as well as the BBFC handling just about all duties involving rating games. But, as anticipated, she's also endorsed the PEGI system, as well. She hopes that the PEGI ratings can go on the back of the game's box, with the BBFC classification being displayed on the front.
This is all just the tip of the iceberg, however. Her report has lots more interesting information, so for the rest, head on over to Game Politics.