This time last year I was writing about an important milestone in the digital economy, the Data Protection and Digital Information Bill, which had just passed through its commons stages
and was arriving with us in the Lords. Sadly, that bill was lost when the General Election was announced although it appeared to be revived, under a new name ‘the Digital Information and Smart Data Bill’ in the Kings Speech.
We have been eagerly awaiting that legislation when the latest iteration of the bill, now known as the
Data Use and Access Bill was introduced to the House of Lords on 23 October. The Bill marks a slight shift in the UK’s approach to data management, privacy, and digital transformation. Some elements of the
previous legislative proposals have been dropped – perhaps in order to address concerns about 'data adequacy’, that is whether the new rules will be deemed by the EU to provide an ‘essentially equivalent’ level of data protection.
The government have constructed the bill with three key policy objectives at its heart: growing the economy, improving public services and making lives easier.
Growing the economy: Smart data and national underground asset register
The government has claimed the bill will inject £10 billion into the UK economy over the next decade. Central to this are the Smart Data powers and the National Underground Asset Register (NUAR). Together, it is hoped that these initiatives will drive innovation,
competition, and economic growth, building on the UK’s leadership in smart data and infrastructure management.
The Science and Technology Secretary and HM Treasury will be granted new powers to introduce schemes that enhance data sharing and ‘open data’ across a broad range of sectors. Open banking – born in Britain - is the best current example of open data. The
potential is considerable and could include (for example) data about energy or telecoms usage. Imagine if you could give permission to an authorised third-party provider (ATPs) about your energy usage that they then used to provide a personalised service.
NUAR, a digital service mapping underground infrastructure, will become mandatory for over 600 asset owners, streamlining data sharing and reducing accidental strikes on buried assets. This will save the economy £2.4 billion annually and improve worker safety.
Improving public services: NHS data sharing and law enforcement
In the UK, our crowning glory is the National Health Service. AI is already being used in the NHS in diagnostics and non-clinical or administrative applications
but there is so much potential. Data is an essential part of this, and it is crucial that we address all the issues and challenges. The medical data of over 65 million people is, collectively, a dataset with incredible potential value but must be handled appropriately,
not least as a result of the implications for public confidence if we get it wrong.
The government have promised that this bill will do just that and have also calculated that the changes will save NHS staff 140,000 hours annually. Accurate patient records could save £65.4 million over ten years by reducing duplicate tests. Enhanced data
sharing, done right, will improve patient safety and ensure that the NHS continues as the greatest healthcare system in the world.
For law enforcement, the Bill removes the need for officers to manually record justifications for accessing personal data, saving 1.5 million hours annually and £42.8 million per year, allowing officers to focus more on tackling crime.
Making lives easier through digital identity frameworks
The Bill establishes a framework for digital identity verification, seeking to create secure and reliable methods for online identity authentication. This change is critical for sectors like financial services and public services, as it enables individuals
and businesses to engage in secure digital transactions and interactions.
From next year, these digital identity services will be given a “trust mark” to show that they meet the latest guidelines – a process that will be managed by the new Office for Digital Identities and Attributes (OfDIA).
I have long argued for the significant social and economic benefits of a distributed digital ID. Digital ID will be a significant driver to the greater adoption of Open Finance. A trusted
and effective citizen created digital ID could enable and empower individuals currently (or potentially) excluded from exercising their rights and accessing basic financial services. In 2011, at our last census, 17% of us had no passport, digital ID could
effortlessly get past this problem. Digital ID: no passport, no problem.
The opportunity for open finance
I am delighted to see this bill back in parliament and believe it signals a pivotal moment in the evolution of the digital economy. By extending Open Data to various sectors, we can forge connections through digital identity, unlocking new prospects for
the UK financial services industry and public sector. Secure, authorised data sharing will enhance personal control, spur innovation, and promote financial inclusion and citizen engagement—a goal worth striving for.
Imagine a scenario where consumers can share their utility data, paving the way for sophisticated, personalised products that go beyond basic standing charges and unit pricing. Linking these tools to Smart Meters could empower consumers to monitor their
energy usage and balances alongside other financial products like credit cards and mortgages. This holistic view of personal finances presents a significant opportunity for financial services, aligning with Emmanuel Daniel’s vision of ‘the great transition’
as our interconnected, online world reshapes financial infrastructure, creating efficiencies and empowering individuals.
Imagine our public services designed to truly serve. Political leadership may change, but the state endures. Like all established organisations, the state tends to err on the side of caution but failing to modernise, reform, and deliver can be perilous for
a nation and its leaders. If harnessed effectively, smart data and secure, protected digital identities can completely reimagine the social contract for the benefit of all.
The mission remains consistent throughout this digital transformation: leveraging our talent and technologies to drive economic, social, and psychological growth nationwide, fostering a connected and interoperable world.
We will be debating the detail of the proposals in the House of Lords on 19 November. I look forward to hearing from anyone with any questions or concerns about any element of the bill.