As far as I'm aware the law hasn't been changed. There is no "fair usage" exemption in the UK.
But, in the same way as nobody has every been arrested for taping off the radio, I don't think there is any problem ripping a CD for transfer to your MP3 player of choice, in the same way as nobody will try to stop you making a compilation CD for the car.
I've been making compilation tapes & CDs for years for a couple of friends, and many of the bands featured should be grateful, because both friends have often bought LPs after hearing songs on the compilations.
I don't think some record companies have done themselves any favours by assuming that all their customers are criminals by applying copy protection to CDs which did bad things to peoples' PCs and refused to play on many in-car CD players.