Data Protection Law Reform

Author Robert Harker Licence CC BY-SA 3.0  Source Wikimedia

 

Jane Lambert

Shortly after EU law ceased to apply to the UK, the government of the day proposed changes to this country's data protection laws.  I discussed those proposals in Dowden's Data Protection Plans on 27 Aug 2021.  A consultation was launched on 10 Sept 2021, which I considered in Consultation on Changing the Data Protection Laws on 12 Sept 2021.  Draft legislation was introduced on 17 June 2022, which I mentioned in The Proposed Data Reform Bill on 25 June 2022.  That bill never made it past its first reading because the minister responsible for piloting it through the Commons was replaced when Liz Truss became prime minister.  The new minister introduced the Data Protection and Digital Information Bill, which was more far-reaching than the Data Reform Bill (see the Data Protection and Digital Information (No 2) Bill 2022-2023). That bill fell with the Conservative government when the general election was held.  One of the first acts of the incoming Labour government was to introduce the Data (Use and Access) Bill on 23 Oct 2024.  That bill received royal assent on 19 June 2025.

The Data (Use and Access) Act 2025 consists of 144 sections divided into 8 Parts with 16 schedules.   The Department for Science, Innovation and Technology describes the legislation as "a wide-ranging Act which includes provisions to enable the growth of digital verification services, new Smart Data schemes like Open Banking and a new National Underground Asset Register" in its Guidance.  The new Act "will not replace the UK General Data Protection Regulation (“UK GDPR”), Data Protection Act 2018 or the Privacy and Electronic Communications (EC Directive) Regulations 2003, but it will make some changes to them to make the rules simpler for organisations, encourage innovation, help law enforcement agencies to tackle crime and allow responsible data-sharing while maintaining high data protection standards."

According to the Information Commissioner, the statute updates some laws about digital information matters and changes data protection laws in order to promote innovation and economic growth.   Its provisions will be phased in between June 2025 and June 2026.  The Department for Science, Innovation and Technology has published useful fact sheets on the UK GDPR and Data Protection Act 2018, the Information Commissioner's Office and the Privacy and Electronic Communications Regulations 2003.

Anyone wishing to discuss this article is welcome to call me on +44 (0)20 7404 5252 during UK office hours or send me a message through my contact form at any time.  In subsequent articles, I shall review the Act and analyse its provisions.

Data Protection and Digital Information (No 2) Bill 2022-2023

Jane Lambert

In The Proposed Data Reform Bill I discussed the government's proposals for a new data protection statute. On 18 July 2022 - 23 days after I wrote that article - Nadine Dorries MP, the Secretary of State for Digital, Culture, Media & Sport, introduced the Data Protection and Digital Information Bill into the House of Commons.  That bill never got beyond its first reading because Ms Dorries was replaced by Michelle Donelan MP when Elizabeth Truss MP became Prime Minister.

At the Conservative Party conference Ms Donelan promised what sounded like far more reaching legislation (see Graham Turner UK Gov Pauses Data Reform Bill | What you Need to Know 4 Oct 2022 Digit News). On 8 March 2023, Ms Donelan withdrew the previous bill and introduced a new Data Protection and Digital Information (No. 2) Bill into the House of Commons.  That Bill has now completed its passage through the Commons and is about to proceed to the House of Lords.

The new Bill consists of 114 clauses divided into 6 Parts with 13 Schedules. 

Part 1 (clauses 1 to 34) and the first 9 Schedules amend the Data Protection Act 2018 and those provisions of the General Data Protection Regulation that are incorporated into the laws of England and Wales, Scotland and Northern Ireland by s.3 of the European Union (Withdrawal) Act 2019 ("UK GDPR") and amended by The Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2019 (SI 2019 No 419).

Part 2 (clauses 46 to 60) regulates "digital verification services."   These are defined by clause 46 (2) as "verification services provided to any extent by means of the Internet."  "Verification services" are defined in the same subsection as 

"services that are provided at the request of an individual and consist in—

(a) ascertaining or verifying a fact about the individual from 5 information provided otherwise than by the individual, and

(b) confirming to another person that the fact about the individual has been ascertained or verified from information so provided."

An article by Charlotte Bowyer on Onfido Ltd.s website adds that:

"Digital identity verification is how businesses confirm that a customer is who they say they are, online. They do this by assessing personal information and personal data related to an individual."

The technique is used by central and local governments, financial services institutions and other businesses to verify identity, age, qualifications and other personal attributes. 

Part 3 (clauses 61 to 77) permits the Secretary of State and the Treasury to make provision in connection with access to customer data and business data.   "Business data" is defined by clause 61 (2) as 

"(a) information about goods, services and digital content supplied or provided by the trader, 

(b) information relating to the supply or provision of goods, services and digital content by the trader (such as, for example, information about where they are supplied, the terms on which they are supplied or provided, prices or performance), 

(c) information relating to feedback from customers about the goods, services or digital content, and 

(d) information relating to the provision of business data to a person in accordance with data regulations."

"Customer data" means 

"information relating to a customer of a trader, including— 

(a) information relating to transactions between a customer and the trader, and 

(b) information relating to the provision of customer data to a person in accordance with data regulations; 'data holder', in relation to customer data or business data of a trader,"

Clauses 79 to 86 of Part 4 and Sched 10 amend The Privacy and Electronic Communications (EC Directive) Regulations 2003 (S.I. 2003/2426). The Regulations implement arts 2, 4, 5 (3), 6 to 13, 15 and 16 of Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector. Clauses 87 to 91 amend Regulation (EU) No. 910/2014 of the European Parliament and the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market. Reg 910/2014 (also known as eIDAS) regulates electronic identification and trust services, such as verifying the identity of individuals and businesses and authenticating electronic documents.

Clauses 94 to 98 and Sched 11 amend The Births and Deaths Registration Act 1953 to facilitate the electronic storage of the relevant data.  Clause 99 and Sched 12 provide for information standards for health and adult social care d and information technology.

Clauses 100 to 103 and Sched 13 establish an Information Commission to enforce the Act.

Anyone wishing to discuss this article may call me on 020 7404 5252 during office hours or send me a message through my contact page.