Understanding the Data (Use and Access) Bill: What businesses need to know

The Data (Use and Access) Bill marks a significant development in the UK’s data governance framework.

Introduced to Parliament in October 2024, it builds on existing data protection laws to encourage innovation while enhancing individual protections. The bill aims to enable responsible data use, improve transparency, promote ethical practices, and establish trust in an increasingly digital economy. Although an enactment date has not been confirmed, the bill is moving quickly through Parliament. This urgency reflects the government’s commitment to digital transformation. Organisations should prepare now to meet the new obligations introduced by this legislation.

Key objectives of the bill

The bill introduces several new measures to reshape data governance. These include mandatory data sharing for public benefit, strengthened individual rights, and stricter rules for ethical AI usage. Additionally, it facilitates automated decision-making, supports legitimate interest processing, and reduces cookie consent burdens. Other reforms include expanding the definition of scientific research and creating a framework for digital identity services. Smart Data schemes will also enable safer consumer data sharing for market comparisons.

By adopting these changes, businesses can demonstrate leadership in ethical data practices. Trust and transparency have become essential in today’s competitive environment.

Key changes introduced by the Data (Use and Access) Bill

1. Mandated data access for public benefit

Public authorities can request datasets from businesses to support public interest goals, such as scientific research or improving services.

• Example 1: A technology company could be required to share anonymised GPS data with urban planners to optimise public transport.
• Example 2: A healthcare provider might share anonymised patient data for a national health initiative.

Impact: Businesses must review processes to ensure compliance with privacy laws while addressing these requests.

2. Enhanced individual rights

Individuals gain more control over how their personal data is used. They will also receive quicker access to their data and clearer information on its processing.

• Example 1: Online marketplaces must inform users about data collection practices and provide opt-out options for targeted advertising.
• Example 2: Fitness wearable companies must respond to data access requests within shorter timeframes.

Impact: Organisations need to update privacy notices and enhance systems for handling data subject requests efficiently.

3. Focus on ethical AI and automated decision-making

Transparency in AI systems is required, especially when decisions significantly impact individuals. This includes areas such as credit, employment, or access to services.

• Example 1: Financial firms using credit-scoring algorithms must explain decisions and provide a review process.
• Example 2: Recruitment agencies using AI to filter candidates must allow human review and clarify criteria.

Impact: Organisations must document decision-making processes, audit AI systems regularly, and offer clear explanations to ensure fairness.

4. Increased penalties for non-compliance

Penalties for non-compliance are higher under the bill, aligning with UK GDPR standards. Public awareness of data rights increases the risk of reputational damage.

• Example 1: Businesses failing to share critical data for public health initiatives could face fines.
• Example 2: Retailers ignoring data deletion requests may face penalties and public backlash.

Impact: Organisations must prioritise compliance through regular reviews of data management and privacy practices.

These examples illustrate how the bill translates into practical obligations and challenges for businesses, highlighting the importance of preparation and proactive compliance measures.

Practical implications for businesses

• Conduct data audits: Organisations should review the data they collect, store, and share. For example, e-commerce platforms must remove outdated or unnecessary customer records.
• Implement Staff Training: Employees handling personal data must receive training on updated obligations. This includes recognising and responding to data-sharing requests.
• Update Contracts: Businesses must revise agreements with suppliers and partners to address new data-sharing and liability requirements.

Legal consequences of non-compliance

Non-compliance could lead to significant penalties, including fines and reputational harm. The Information Commissioner’s Office (ICO) is expected to take a proactive enforcement approach. For example, healthcare providers failing to meet transparency standards may face public scrutiny and financial penalties.

Ensure preparation for the Data (Use and Access) Bill

With the bill likely to become law soon, organisations must act now. Start by conducting comprehensive data audits, updating privacy policies, and training staff. Compliance deadlines may arrive faster than expected, so proactive measures are critical.

If you’re unsure where to begin, our team of experts can help. Contact us today to develop a tailored compliance strategy and position your organisation for success under the new regulatory framework.