The Data Protection and Digital Information (DPDI) Bill, which is currently going through Parliament, signifies a crucial step forward in the UK’s data protection framework.
Our system will be easier to understand, easier to comply with, and take advantage of the many opportunities of post-Brexit Britain. No longer will our businesses and citizens have to tangle themselves around the barrier-based European GDPR.
Science, Innovation and Technology Secretary
Balancing reform while also preserving robust data protection standards, this new legislation aims to make the EU General Data Protection Regulation (GDPR) more reasonable, accessible, and less burdensome in lower-risk situations, while maintaining high data protection standards. It also intends to foster data-driven research and innovation, and provide guidelines for organisations regarding the processing of data that is within the public interest, including for crime prevention, safeguarding, and supporting government responses during critical incidents.
UK organisations should closely track the progress of the DPDI Bill and carefully evaluate any adjustments they may want to implement once it becomes law. Considering that businesses are bound by GDPR, they will face a pivotal decision: whether to adapt their practices in alignment with the DPDI Act or continue adhering to GDPR norms.
What are the benefits of the DPDI to businesses?
Companies will see a number of benefits for their UK-only data processing activities and as the Bill intends to provide a more practical approach, it will be much welcomed by many organisations.
Some of the key benefits include:
A more practical approach
The Bill introduces a common-sense-led UK version of the EU’s GDPR. It streamlines data protection requirements, making compliance easier and less costly for companies.
Greater flexibility for technology innovation
AI and quantum computing technologies have huge potential to generate widespread benefits across a range of fields. This Bill will provide greater clarity on automated decision-making, which will give companies more flexibility to explore new technologies without the burden of technical non-compliance due to unclear legislation.
Alleviate administrative burden and improve efficiency
DPDI reduces the amount of paperwork and formalities required to demonstrate compliance, which will enhance administrative efficiency and reduce compliance costs, while still adhering to robust data protection standards. When the Bill is officially introduced, only organisations whose data poses high risks to individual’s rights and freedoms will need to keep processing records.
Although organisations will still need to be transparent about their data processing practices, governance, and compliance obligations, some of the unnecessary red tape will be removed.
Reduces legal costs
It will provide legal clarity for routine digital business operations. This includes running websites or apps and exchanging data among group companies across different regions. As a result, expensive legal scrutiny (in complex areas such as public authority data access) becomes unnecessary.
Allows businesses to focus on areas that pose substantial risks
By removing the uncertainty around basic business functions, organisations can focus on the areas that genuinely pose risks to customers, such as fraud, cyber security, and handling sensitive data. In this regard, the new UK Bill aims to provide a level of personal data protection at least on par with GDPR.
Supports international trade, boosting the UK’s economy
The Bill will remove barriers to international trade without imposing additional costs on already-compliant businesses. It is expected to unlock £4.7 billion in savings for the UK economy over 10 years and retain the country’s internationally renowned data protection standards.
Faster time-to-hire
A new framework for the use of digital verification services, which allows people to verify their identity digitally, will be introduced, meeting rigorous standards of security and compliance. This gives businesses the ability to hire professionals faster, with confidence.
Ultimately, the DPDI Bill is poised to usher in a new era of data protection, balancing robust data protection with the practical realities of digital business operations.
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