This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.

Freshfields TQ

Technology quotient - the ability of an individual, team or organization to harness the power of technology

| 8 minute read

UK data reforms unpacked: what businesses need to know about changes to data protection and privacy laws

On 11 June 2025 Parliament passed a Bill that will shortly gain Royal Assent and become the Data (Use and Access) Act 2025 (the DUAA). The DUAA will implement a raft of reforms across the UK data law landscape. In particular, the DUAA will introduce reforms to the UK’s data protection and ePrivacy regimes that are relevant to almost all companies. 

This article explains some of the most significant data protection and privacy law changes that will impact those doing business in the UK. Click here to read more about other aspects of the DUAA.

Background 

The UK’s current data protection and ePrivacy regimes are largely based on the EU’s ‘GDPR’ and ePrivacy laws, except for some minor amendments that were required as result of Brexit

The DUAA will now result in more material divergence from the EU’s regulatory regime.

The top six most consequential reforms for most businesses include: 

At-a-glanceSummary of the reforms
Replacement of the ICO by the Information Commission

The Information Comissioner’s Office (ICO) currently regulates the UK’s data protection and ePrivacy regime along with many other information laws. 

The DUAA will replace the ICO with a new supervisory authority called the ‘Information Commission’ and also make various reforms to the regulator’s organisation and duties. For example the Information Commission will be:

  • required by law to have regard to promoting innovation and competition;
  • granted new enforcement powers (eg, the right to require an organisation to produce a report or compel a person to attend an interview in connection with an investigation); and
  • empowered to take longer than six months to issue a penalty notice following its notice of intent where necessary and provided it does so as soon as reasonably practicable. This will give it more time to complete investigations, which could help strengthen and prolong enforcement actions. 

 

A mixed bag of changes to data subject requests and complaints

The DUAA will give individuals a statutory right to make complaints to the controller and impose a statutory obligation on those controllers to put in place processes to facilitate complaints and respond to them within certain timeframes.

The DUAA will also make changes to the calculation of timeframes within which responses to data subject requests must be provided and clarify the scope of searches the controller is obliged to undertake. These changes will often benefit data controllers, including by specifying they may:

  • ‘stop the clock’ on the response time if they were unable to respond to a request without receiving further information or clarification from the person making the request (building on rights to ‘stop the clock’ the ICO has already granted in its guidance on data subject access requests); and
  • via one of the few reforms to take effect immediately upon Royal Assent, limit searches in response to a data subject access request to what is ‘reasonable and proportionate’ (although ICO guidance already states unreasonable or disproportionate searches are not required). 
Facilitating international transfers of personal data

The DUAA will introduce a more liberal ‘risk-based’ approach to international transfers of personal data, and therefore facilitate more transfers of personal data outside the UK. This includes:

  • a revised set of criteria that the government will use to decide if the laws of a non-UK country are generally ‘adequate’ and therefore personal data can be sent to that country from the UK without additional safeguards; and
  • a new statutory test that will govern how organisations should undertake transfer risk assessments that must be completed by organisations before using commonly used safeguards to transfer personal data outside the UK (eg certain approved data transfer agreements or binding corporate rules).

This is one of the most significant reforms and will be explored separately in a forthcoming blog post.

The DUAA also includes reforms to authorise certain data processing necessary for the purposes of responding to a request by US authorities made in accordance with the Agreement between the UK and US on Access to Electronic Data for the Purpose of Countering Serious Crime.

Facilitating automated decision making and use of AI

The DUAA will empower organisations to implement automated decision-making in additional scenarios. This is one of the most significant reforms and will be explored separately in a forthcoming blog post.

The government has also committed to using its secondary legislation powers to require the Information Commission to produce a new code of practice on solely automated decision-making and AI.

Changes to the ePrivacy regime governing aspects of direct marketing plus the use of cookies and other tracking tech 

Key changes include:

  • unlawful direct marketing or use of tracking technologies (eg cookies) will be subject to increased fines equivalent to those under the UK GDPR (ie up to the greater of £17,500,000 or 4% of an undertaking’s total annual worldwide turnover, compared with a maximum of £500,000 currently);
  • reforms to rules relating to the use of cookies and other tracking technologies, including:
    • expressly extending those rules to cover: (1) the collection and monitoring of information automatically emitted by the equipment (eg, Wi-Fi probe requests); and (2) those instigating the storing of or access to information;
    • exempting certain further cookies (and the like) from the general requirement to obtain consent provided an appropriate right to object and certain information is provided, such as various cookies for analytics or to record preferences of subscribers/users; and  
    • giving the government powers to vary exemptions to those restrictions in the future; and
  • amendments to definitions relating to direct marketing, such as to clarify that  ‘call’ includes attempted calls.
Protection of children’s data

The DUAA will amend controllers’ data protection by design obligations for those processing personal data in the course of providing information society services (which includes most online services) likely to be accessed by children. 

Under the reforms in-scope controllers must take account of certain ‘higher protection matters’ when assessing what are appropriate technical and organisational measures. 

It remains to be seen how significant this is in practice. The head of the ICO has said:

 ‘Whilst I remain committed to ensuring that children are appropriately protected, it is important to clarify that although an organisation might need to take different steps when handling children’s data as opposed to adults, the underlying data protection principles themselves remain the sameI do not want this amendment … to suggest that the [ICO’s Age Appropriate Design Code] reflects a higher legal standard than when processing data about adults’.

The ICO has requested further clarity from the government on various aspects of this requirement. 

 

Other reforms that may be relevant to certain businesses include:

 

At-a-glanceSummary of the reforms
Facilitating the processing of personal data for new purposes

Reforms are made to:

  • assist controllers in determining whether the processing of personal data for a new purpose is compatible with the purpose limitation principle; and
  •  pre-approve certain purposes as ‘compatible’.
Assisting organisations using personal data in connection with undertaking certain research

The DUAA will: 

  • clarify how controllers processing data for scientific research purposes may obtain consents where it is not possible to fully identify the purposes for which the personal data is to be processed at the time of collection;
  • clarify that certain commercial research activities can benefit from special rules regarding research (some changes are also made to liberalise processing for statistical purposes);
  • clarify and collate various provisions relating to safeguards to be employed for processing for research, statistical and certain other purposes; and
  • provide further exemptions from the need to give transparency information to data subjects.
Minor amends to information/transparency obligations

These include creating a revised ‘disproportionate effort or impossibility’ exemption in relation to the requirement for information to be given to data subjects where the data was not collected directly from them. 

The reform is intended to clarify that the exemption applies to all processing and provide a non-exhaustive definition.

Reformed notice period for personal data breaches impacting public electronic communications services

Providers of a public electronic communications service (ie entities which provide any service allowing members of the public to send electronic messages, including telecoms providers and internet service providers) are subject to a personal data breach notification regime under UK ePrivacy laws, which is distinct from that under the UK’s general data protection regime.

Those obligations currently include notifying the ICO of a personal data breach within 24 hours. The ICO had already announced some relaxation in how it would enforce that deadline. 

The DUAA will specify the obligation is relaxed to require reporting of breaches without undue delay and, where feasible, not later than 72 hours after becoming aware of it (plus an obligation to explain any failure to notify within the 72 hours).

Express confirmation that certain activities ‘may’ be processed under the existing legitimate lawful basisThe DUAA will expressly confirm that certain processing may be lawful under this existing lawful basis if it passes a legitimate interests assessment, including processing necessary for: (1) direct marketing; (2) intra-group transmission of personal data for internal administrative purposes; and (3) ensuring the security of network and information systems. 
Reforms focused on the public and third sector

The DUAA also includes various other reforms that are  generally most likely to be relevant to processing by public authorities, NGOs and charities (which are out of scope of this article). 

Those include a new ‘recognised legitimate interests’ lawful basis for certain processing related to: (1) national security, public security and defence; (2) serious civil emergencies; (3) detecting, investigating or preventing crime and apprehending or prosecuting offenders; and (4) safeguarding vulnerable individuals.

Future reforms

The DUAA includes extensive powers for the Secretary of State to make subsequent reforms to UK data protection laws through secondary legislation and without the need to pass further primary laws through Parliament. For example, the Secretary of State will be given power to add new items to the list of special categories of personal data that benefit from addition protections under the UK GDPR.

These powers make regulatory reform in various aspects of the data protection regime more likely going forward. 

Implications and next steps

Most of the proposed reforms introduce relatively limited changes. Businesses that already comply with the current UK data protection and ePrivacy regimes will generally only need to make minor adjustments.

The DUAA promises greater flexibility and divergence in certain areas (eg, automated-decision making, data processing in connection with research and international transfers). However, many organisations will be subject to both UK and EU GDPR regulations. As a result, the government’s efforts to reduce burdens on organisations might not lead to cost savings if organisations find it more cost-effective or otherwise prefer to adhere to the stricter EU GDPR standards to meet the requirements of both regimes.

The DUAA will also introduce some new burdens on organisations and a need for them to consider how they should adapt their existing UK processes. For example, businesses will face potentially far higher fines for infringements of the ePrivacy regime, new enforcement powers and the requirement to put in place a process to facilitate data subject complaints. 

Impact on transfers of personal data from the EU to UK

The UK government has made clear that it understands the importance of keeping the UK’s designation as an ‘adequate’ jurisdiction from the European Commission, which allows most personal data to be transferred from the EU to the UK without the need to put in place additional safeguards. 

The UK’s current adequacy decision expires in June 2025. The European Commission is likely to grant the UK a six-month extension until a date in December so it can consider the impact of the DUAA. 

We share the UK government’s assessment that the reforms in the DUAA are unlikely to cause the European Commission to decide to not extend the UK’s adequacy for further years.

However, any divergence from the EU’s regime may increase the odds of a successful challenge to the UK’s adequacy status before the EU’s Court of Justice, regardless of the European Commission’s view. 

When the reforms will take effect

The government has yet to confirm the timetable for most of the provisions to be made applicable and some commencement dates may extend into 2026 or, in theory, beyond. The full transfer of all ICO functions, for example, will likely require a carefully managed process. 

A delayed implementation that leaves key aspects of the UK data protection regime in flux close to the EU’s adequacy review deadline could be viewed negatively by the EU, potentially incentivising the UK government to commence a substantial package of the data protection reforms well in advance of December 2025. 

Businesses and other organisations should start considering how they may adapt to, and take advantage of, the new reforms. 

 

Tags

adtech, ai, data, data protection, e-commerce, europe, gdpr, ico, internet of things, platforms, regulatory, regulatory framework, social media, tech media and telecoms, uk, uk 2025 data reforms