A new Data Use and Access Bill (aka the Data Bill) has been introduced to parliament. It’s set to bring significant changes for organisations by reshaping data sharing, access, and management protocols. What is it, and what does it mean for your organisation?
In brief, what is the new Data Bill?
The Data Bill is a proposed UK law aimed at modernising how data is collected, stored, and used, with significant implications for public services, businesses, and individuals. It will streamline data sharing and access across sectors while strengthening data privacy and security.
The Bill also seeks to simplify regulations around data processing, making it easier for organisations to use data ethically. It encourages responsible data use in research, healthcare, and business, fostering innovation without compromising individuals’ rights. By balancing accessibility with stringent safeguards, the legislation intends to boost the UK’s economy – by an estimated £10 billion – and enhance public trust in data handling.
Key changes for your organisation
Some of the changes from the Bill will affect your organisation whether you choose to implement them or not. Other changes provide opportunities for your organisation to do things better and more efficiently and will involve you actively seeking out ways to leverage the new prospects the Bill presents. Covering both, here are the key changes that you should take note of:
Increasing user expectations for convenience and security with digital ID
The Bill promotes the use of secure digital identity services that allow individuals to verify their identities online for all kinds of services – including moving house, pre-employment checks, and accessing public or financial services. This change is aimed at increasing convenience and security in identity verification processes.
The Bill will make it easier for organisations to find government-trusted providers of digital identity verification, through the use of a public register and trust mark. This means there will be more organisations adopting digital ID, leading to increased public expectations for this availability throughout the services they use. Not keeping up with this development could mean losing customers through cumbersome identity processes.
The Bill will also make it possible for public authorities to share information with registered organisations to conduct identity or eligibility checks for individuals, on request of the individual to whom the data relates.
Read more about what the Bill means for digital identity in this government blog.
Changing the way you control and process user data
At present, there is an imbalance of power: organisations control user data whilst individuals have little control. A central aim of this Bill is to ensure individuals have control over who accesses their data and when.
Currently, UK individuals in particular are sceptical of ethical organisational use of their data. This extends even further to public services, where many are frankly mistrustful over government use of their personal information. By addressing this imbalance, public trust in service data usage will increase, meaning greater service uptake.
Organisations should undergo a full review of how they currently control and process user data in order to meet the Bill’s requirements. Seeking external consultancy could be key to ensuring regulatory compliance with minimal disruption, particularly if you don’t have in-house expertise.
Higher compliance expectations with increased enforcement
The Bill will modernise the Information Commissioner’s Office (ICO), which will gain enhanced regulatory powers to oversee data protection in a rapidly evolving digital environment. This modernisation will ensure better enforcement of data protection laws. Under the Bill, the ICO is encouraged to provide clearer guidance for Independent Data Controllers, addressing existing ambiguities around data sharing and processing responsibilities, particularly relevant to new models like Holder Service Providers (HSPs).
While these changes could enhance consumer trust, organisations will face increased regulatory scrutiny to ensure compliance with privacy standards, including specific handling rules for data-tracking technologies.
Smart Data Schemes provide opportunities for competitive edge
Smart Data Schemes will enable consumers to securely share personal data with authorised third parties. This is in contrast to data being held in siloes by each organisation, and means individuals would own and control access to their data in personal data stores.
The Bill suggests introducing data portability to prevent consumers from being locked into particular service providers, much like the open banking model. This could involve implementing similar frameworks for switching providers with ease, boosting flexibility and competition. This also creates new opportunities for service enhancement and customer relationship management.
There is a significant opportunity here for organisations to remove the burden of storing and controlling user data. By leveraging pre-existing personal data stores, owned and maintained by the individual, the organisation becomes a Data Processor rather than a Data Controller. This has the potential to save organisations considerable resources, which are otherwise spent maintaining their own data storage.
Find out more about Smart Data.
Public Services: A focus on digital transformation
The Bill facilitates the digital transformation of services like the electronic registration of births and deaths, streamlining processes and reducing administrative burdens for both government and citizens.
For public sector bodies, like the NHS and police, the bill streamlines data sharing to enhance service efficiency. For instance, NHS trusts and related entities will gain easier access to patient records, aiming to cut down administrative time and speed up healthcare delivery. Similarly, the police will experience streamlined access to databases for investigations, reducing manual tracking requirements and saving significant personnel hours.
Affecting Utilities: A National Underground Asset Register
The Bill introduces a standardised database for underground assets (like pipes and cables) to improve safety and efficiency in construction and infrastructure maintenance.
Data Bill Summary
In summary, the Bill seeks to empower individuals with more control over their data, promote secure digital verification, and drive economic growth through innovation in data usage.
In the private sector, the bill’s mandates on interoperability and digital verification services mean companies must adapt their systems to meet new government standards. Organisations that are data-intensive, particularly in tech, healthcare, finance, and utilities, may see an increased administrative and compliance burden, especially regarding digital identity verification and data-sharing protocols for legal and transparency requirements. Thus, while the bill introduces efficiency gains for public institutions, it also brings additional compliance challenges for businesses, requiring them to adapt to a new regulatory landscape that emphasises streamlined access with maintained privacy standards.
The changes aim to bolster digital data infrastructure across sectors, but businesses may need to invest in upgraded systems to meet interoperability and compliance demands effectively. This legislative shift is expected to impact data-related roles, digital service providers, and any organisation relying on large data sets or engaging in digital identity verification.
It’s clear that the Data Bill will bring significant changes for all organisations. But what about your specific organisation? CDD runs workshops to help you understand the impact and opportunities that the Data Bill presents for your organisation or community. Find out more about our workshops, and other ways we can support you: get in touch.
