What is the UK Data Protection and Digital Information Bill?

The UK is ushering in a new era of data regulation with the introduction of the Data Protection and Digital Information (DPDI) Bill. Designed to modernise and streamline data protection in a post-Brexit landscape, the bill marks a departure from the EU’s GDPR framework, while still aiming to maintain a robust level of data privacy. For businesses, especially small and medium-sized enterprises (SMEs), understanding the implications of this legislation is critical to ensuring compliance and avoiding regulatory pitfalls.

A New Framework for Data Protection

Originally introduced to Parliament in March 2023, the DPDI Bill is intended to amend the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. Its purpose is twofold: to reduce unnecessary administrative burdens on businesses and to empower organisations to make more efficient use of data, particularly in public services, scientific research and innovation. Yet, while the bill aims to simplify existing rules, it also introduces a number of substantive changes that organisations must prepare for.

Among its key objectives, the DPDI Bill seeks to enhance the UK’s data ecosystem while preserving its ability to transfer data freely with the European Union. This balance is crucial to ensuring the UK retains its “data adequacy” status with the EU something that would be jeopardised if data protection standards were deemed insufficient.

Evolving from GDPR: What’s Changing?

One of the most talked-about changes is the replacement of the Data Protection Officer (DPO) requirement with a more flexible role called the Senior Responsible Individual (SRI). While a DPO under the GDPR had to be independent and sometimes external, the SRI must be part of the organisation’s senior management team. This shift not only embeds accountability at the top level but may also make compliance feel less like a bureaucratic checkbox exercise and more a part of business governance.

The bill also relaxes the requirement for certain organisations to maintain Records of Processing Activities (RoPA). Unless a business is involved in high-risk processing, it will likely no longer need to compile and retain this documentation. While this certainly reduces paperwork, it places greater responsibility on businesses to self-assess their risk exposure accurately.

Subject Access Requests (SARs) are another area of reform. Under the new legislation, businesses can refuse or charge a fee for requests deemed “vexatious or excessive” a lower bar than the previous “manifestly unfounded or excessive” threshold. This aims to protect organisations from repetitive or unreasonable requests that drain resources.

The requirement for Data Protection Impact Assessments (DPIAs) will also be relaxed. These will be replaced by more flexible “Assessments of High-Risk Processing,” which are intended to better align with the unique operational contexts of different organisations.

Additionally, the bill tackles the often-criticised burden of cookie consent banners. It introduces provisions that would allow certain cookies used for analytics or improving service delivery to be deployed without explicit user consent, as long as users are informed and provided with an opt-out mechanism. This change reflects a broader trend toward practical usability without compromising individual privacy.

International data transfers will also become more navigable. Instead of meeting the exacting standards of the EU GDPR, the UK will use a “data protection test” to assess whether other countries offer protection that is “not materially lower” than UK standards. This creates a more flexible framework for cross-border data flows, particularly relevant for businesses operating internationally.

What Does This Mean for SMEs?

For SMEs, the DPDI Bill offers both opportunities and challenges. On the one hand, the reduction in administrative burdens such as not having to appoint a DPO or maintain RoPAs in low-risk scenarios means time and resources can be better spent on core business activities. Simplified governance structures and more reasonable thresholds for managing SARs will also help smaller organisations maintain compliance without overstretching limited personnel.

On the other hand, the risk of underestimating obligations or incorrectly assessing processing risks could lead to serious compliance breaches. Just because the framework is more flexible does not mean it’s lenient. Businesses still need to demonstrate that they are handling personal data responsibly, with adequate technical and organisational safeguards in place.

Moreover, with the new rules set to deviate from the EU GDPR, companies that operate in both the UK and EU markets may face the added complexity of dual compliance. Ensuring that data handling practices satisfy both regulatory regimes will require careful planning and possibly even different internal processes.

Staying Compliant in a Changing Landscape

Adapting to the DPDI Bill means more than just updating documentation it requires a cultural shift in how businesses approach data protection. Senior leadership should take an active role in overseeing compliance, particularly where the appointment of a Senior Responsible Individual is concerned. Organisations must also review their current policies and risk assessment procedures to ensure they align with the new requirements.

Training is crucial. Staff need to be aware of their responsibilities, especially when it comes to recognising high-risk processing activities or responding to access requests. Technical solutions should also be revisited secure data storage, encryption and access controls remain essential tools in mitigating risks.

Perhaps most importantly, businesses must keep a close eye on the bill’s progress. As it continues its journey through Parliament, amendments may alter or clarify some of the proposed changes. Early action, coupled with ongoing vigilance, is the best way to stay ahead of the curve.

How EvolvIT Can Help

For SMEs looking to navigate these regulatory changes, EvolvIT offers tailored IT consultancy and support designed to simplify compliance. Our team helps businesses interpret the evolving requirements of data protection laws and implement pragmatic, cost-effective solutions.

From conducting compliance audits and developing clear data protection policies to delivering targeted staff training and securing IT infrastructure, EvolvIT supports clients every step of the way. Our expertise ensures that you not only meet your legal obligations but also strengthen your overall approach to data management and security.

As the UK redefines its digital data landscape, EvolvIT stands ready to help your business turn regulatory compliance into a strategic advantage. Get in touch today to find out how we can support your journey through the changes brought by the UK Data Protection and Digital Information Bill.