Data (Use and Access) Bill Passes, Ushering in New Era for UK Innovation

On 11 June, the Data (Use and Access) Bill completed its passage through Parliament. Much anticipated by techUK and our members, these reforms modernise UK's data protection framework into one that is clearer, more flexible, and more user-friendly to researchers and innovators, while maintaining high data protection standards - key in building trust in the new digital age. The economic significance is substantial - data access and sharing are estimated by the OECD to generate up to 4% GDP gains.

Having been actively engaged throughout the development of these reforms over the past three years - including through the Government's Business Advisory Group and wider consultation and engagement processes - techUK welcomes the Bill's passage and the benefits it will provide for individuals and organisations across the UK.

Key measures include:

Fostering innovation, competition and consumer choice by enabling Smart Data Schemes: Smart Data schemes will facilitate safe data sharing in sectors including finance, transport, energy, and home buying, enabling innovation, and improving consumer choice. For example, Open Finance alone is estimated to have the potential to boost UK GDP by £30.5 billion annually by fostering a more competitive and innovative market environment.

Enhancing trust with Digital ID to support economic growth: The Digital Identity Trust Framework introduces important measures that aim to help underpin trust in Digital IDs. A critical driver of economic growth, its widespread adoption could add £800 million annually to the UK economy through improved financial inclusion, reduced levels of fraud, and streamlined access to services like banking, public services, and retail experiences.

Introducing a "recognised" legitimate interest list to streamline data use for public safety: The reforms introduce a clear list of approved purposes for using data in urgent public interest situations like crime prevention, protecting vulnerable people, and emergency response. Previously, organisations had to carry out complex legal assessments before using data for these purposes, which could delay critical responses. This change provides clear legal grounds for data use when it matters most.

Standardised health and care IT systems: The reforms standardise information across health and adult social care IT systems in England, supporting more interoperable medical records and ensuring frontline professionals have timely access to accurate information. Government's estimates suggest this could save 140,000 hours of NHS staff time annually, reduce 6.8 million medication errors, and improve patient outcomes.

Introducing a risk-based approach to Automated Decision-Making: The changes introduce a carefully designed, risk-based approach that distinguishes between low-risk and high-risk Automated Decision-Making (ADM). This enables organisations to use automation more widely in routine, low-risk scenarios which make up the majority of ADM uses - such as service personalisation, faster logins, or initial credit eligibility checks.

The reforms maintain strong safeguards for high-risk applications that could have legal or similarly significant effects on individuals, such as mortgage reviews or employment decisions. These include clear requirements to inform individuals about automated processing and give them rights to contest decisions and seek human intervention.

For sensitive personal data, automated decision-making remains prohibited unless explicit consent has been given, or the processing is both necessary for a contract/required by law AND serves a substantial public interest. The Information Commissioner's Office, responsible for data protection in the UK has noted that this approach "strikes a good balance between facilitating the benefits of automation and maintaining additional protection for special category data."

The potential benefits are substantial: automated systems can reduce fraud (DWP estimates potential savings of £1.6 billion by 2030-31 from fraud detection), improve public services (the US Department of Veterans Affairs reduced document processing times by 90%), and enhance customer experiences through better matching services. These systems also support consistent application of rules across organisations, reducing variability and increasing transparency in decision-making. For more information, read techUK’s briefing on ADM here.

What comes next?

Realising these benefits requires effective implementation. techUK looks forward to engaging working with departments, regulators, and members to ensure successful implementation - supporting innovation, reducing burdens, and delivering better outcomes for people and businesses across the UK.

techUK commented

techUK welcomes the passage of the Data (Use and Access) Act, which will make the UK's data protection framework more innovation-friendly, while maintaining strong data protection standards.

The tech sector has eagerly been anticipating this moment. The legislation provides much-needed clarity for businesses and creates the conditions for greater economic growth.

As the government continues with its mission to improve public service delivery, the Act lays the groundwork for smarter, more efficient data sharing across the health and social care sectors – helping to reduce administrative burdens and simplify procedures.

techUK looks forward to continuing to work with government and regulators to ensure its successful implementation.

- Antony Walker

Audre Verseckaite

Senior Policy Manager, Data & AI, techUK

Audre joined techUK in July 2023 as a Policy Manager for Data. Previously, she was a Policy Advisor in the Civil Service, where she worked on the Digital Markets, Competition and Consumers Bill at the Department for Science, Innovation and Technology, and at HM Treasury on designing COVID-19 support schemes and delivering the Financial Services and Markets Bill. Before that, Audre worked at a public relations consultancy, advising public and private sector clients on their communications, public relations, and government affairs strategy.

Prior to this, Audre completed an MSc in Public Policy at the Korea Development Institute and a Bachelor's in International Relations and History from SOAS, University of London. Outside of work, she enjoys spending time outdoors, learning about new cultures through travel and food, and going on adventures.

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