Does the class system matter much in modern Britain?

Jackblue
I have been to Britain twice but only for a couple of days each time. I had always assumed that no one really cares that much who is of noble birth, but some other people are telling me I am wrong. I know of course that the House of Lords doesn't have any power, but British people if you see somebody walking down the street who you know is a Lord will the ladies courtesy and the men tip their caps?
Does the class system matter much in modern Britain?
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