Data Use And Access Bill – How Will It Impact Businesses And Their Dealings With Data Protection? (2025)

ARTICLE

17 December 2024

The Labour government's Data (Use and Access) Bill (DUAB) aims to simplify UK data protection laws, enhance regulatory frameworks, and introduce measures such as smart data schemes, increased fines, and ICO reforms. It is currently advancing through Parliament.

United Kingdom Privacy

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In our article: data protection expectations for2024, we hoped to see the Data Protection and Digital Information Bill(DPDIB) being granted Royal Ascent and thereforean Act of Parliament. However, due to the change in government as aresult of the general election, parliament was dissolved and DPDIBshelved for the time being. Now, the Labour government haveintroduced their own new data protection bill – the Data (Useand Access) Bill (DUAB) – which is currentlymaking its way through parliament.

What are the DUAB's proposals?

The DUAB seeks to simplify data protection law in the UK. Itelaborates on some previous proposals provided for by the DPDIB,removes some controversial features, and introduces newprovisions.

The key proposals include:

  • relaxing existing rules in relation to automated decisionmaking regarding personal data (it is not expected that therewill be any impact on the rules for special category data);
  • creating a new lawful basis for processing personal data titleda "recognised legitimate interest";
  • bringing the Privacy and Electronic Communications Regulations(PECR) enforcement regime in line with that of the General DataProtection Regulation (GDPR); and
  • reforming the constitution of the InformationCommissioner's Office (ICO).

How will the DUAB change existing data protectionlegislation?

1. Smart Data Schemes

Part 1 of the DUAB focuses on the sharing of customer andbusiness data. This will enable businesses to share informationwith one another, provided the customer has given their consent;this builds upon previous consultations which were carried out whenthe Conservatives were in government. The UK currently has asimilar scheme in place with Open Banking but this new scheme willextend the ability for organisations to share personal data withone another in new and additional sectors such as utilities. Ifthese schemes are put in place, consumers will find it easier toswitch providers and should benefit from competitive prices.

3. Digital Verification Services

Digital Verification Services (DVS) are thoseservices which are able to identify a person's identity and areoften used by various businesses and institutions. Part 2 of theDUAB provides that the Secretary of State will prepare a trustframework of rules regarding the use and provision of DVS. Theservices will need to be verified and will be provided a relevanttrade mark to signify they are certified. These certified serviceswill be featured on a publicly available register providing somecomfort to data subjects whose personal data will be processed bybusinesses using such services.

The DUAB will also increase fines for any breaches ofthe PECR which cover areas like marketing and cookies. These fineswould now be similar to those imposed under the GDPR.

3. Privacy

Part 5 of the DUAB looks to make the most changes to the dataprotection legislation and frameworks we are familiar with.Definitions within the GDPR will be amended so that data can be moreeasily used for research purposes and specific articles relating tothe use of automated processing and decision making will be tweakedso as to relax restrictions (unless dealing with special categorydata as mentioned above). It's also proposed that a new"recognised legitimate interest" will be introduced whichwill cover legitimate interests such as disclosure to a personcarrying out a public interest task, safeguarding nationalsecurity, protecting public security and defence purposes, and inresponse to an emergency as defined in the Civil Contingences Act2004. This list will also be able to be expanded by the Secretaryof State via further regulations.

The DUAB will also increase fines for any breaches of the PECRwhich cover areas like marketing and cookies. These fines would nowbe similar to those imposed under the GDPR.

4. Information Commissioner

Part 6 of the DUAB proposes changes to the ICO. Instead of thecorporation-like body we currently have in place, the DUAB proposesthat a new statutory body corporate known as the "InformationCommission" be introduced. The DUAB also proposes changes tothe way in which the ICO exercises its powers. the ICO haspublished a response to the draft DUAB, agreeing with its reforms,and stating they believe it will enhance regulatoryeffectiveness.

The above provides a brief summary of some of the key changes weexpect to impact ordinary businesses and their use of data.However, the DUAB is wide-ranging and also includes proposalsregarding updating the register of births and deaths so it issolely electronic and upgrading the safety and efficiency ofunderground electrical assets. It's worth noting that the DUABhas so far had a favourable reception.

When will we see the changes come into effect?

The DUAB has received its second reading within the House ofLords and is now at the first committee stage. We still have a bitof a wait it becomes law, if it succeeds in doing so.

Our data protection team will continue to monitor the DUAB'sprogress and provide updates on any major changes.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

Data Use And Access Bill – How Will It Impact Businesses And Their Dealings With Data Protection? (2025)

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