WIREDGOV

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 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 Act standardises 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. 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 Act introduces a carefully designed, risk-based approach that distinguishes between low-risk and high-risk automated decision-making. 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 ICO has assessed that this approach "strikes a good balance between facilitating the benefits of automation and maintaining additional protection for special category data." 

The benefits are substantial: automated systems can reduce fraud (DWP estimates 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