Dancing can form part of a religious service. I've seen nuns dancing at a Mass in Brentwood Cathedral for example. I doubt if they could make a PEL requirement stick in this sort of case even if they wanted to. A social dance held on church premises might be a different matter.

I only hope Mike Harding will have been rather less ignorant about the legal situation than whoever wrote that BBC press release. Or whoever writes Kim Howell's press releases and speeches.