The Data (Use and Access) Bill: Is Your Business Prepared?

An Opportunity To Create A Competitive Advantage

Cyber attacks are a growing threat to UK businesses, with 50% of UK SME’s reporting a cyber attack in 2024. Despite this, many SME’s still remain unprepared, leaving them vulnerable to financial losses, reputational damage, and legal penalties.

Governments are responding by introducing stricter cyber security laws to protect sensitive data, critical infrastructure, and consumer privacy. For UK SMEs, compliance is no longer optional, it’s a business imperative.

Introducing The Data (Use and Access) Bill

The UK government introduced the Data (Use and Access) Bill in October 2024. This new bill aims to promote the greater use of data to grow the economy, improve public services, and make people’s lives easier. While it includes some of the changes proposed in the previous bill (The Data Protection and Digital Information Bill,) which was designed to replace GDPR, it now shifts focus towards enabling data use across various sectors rather than solely reforming data protection laws. As of February 2025, the Bill has not yet become law, however, it has completed its passage through the House of Lords, where it underwent several amendments after significant debate and it is anticipated to pass in the first half of 2025.

5 Steps You Can Take To Ensure Readiness

1. Implement Endpoint Detection and Response (EDR) Solutions

• EDR solutions provide real-time monitoring and detection of suspicious activity across all endpoints (e.g., laptops, desktops, mobile devices) within the organisation. By integrating an EDR system, SMEs can proactively identify potential threats before they escalate into full-fledged cyberattacks.
• Action: Invest in an EDR solution that continuously monitors endpoint activities, provides real-time alerts, and allows for immediate response to potential security incidents. This will help you meet the bill’s requirements related to proactive measures for securing data and protecting sensitive information from cyber threats.

2. Consider Security Operations Centre (SOC) Services

• A Security Operations Centre (SOC) is a centralised unit that continuously monitors and analyses an organisation’s security posture. For SME’s, partnering with an external SOC provider can enhance security by providing 24/7 monitoring, threat detection, and incident response. This ensures that any potential breaches or data security incidents are identified and addressed swiftly, helping maintain compliance with both current and upcoming cyber security regulations.
• Action: Explore SOC-as-a-service offerings to outsource security monitoring, incident detection, and response. By leveraging a SOC, SMEs can enhance their cybersecurity capabilities without the need for an in-house team, ensuring that their systems are continuously monitored for vulnerabilities and threats.

3. Review and Update Data Protection Policies

• SMEs should ensure their data protection policies are up-to-date with current legislation, including any provisions of the Data (Use and Access) Bill once enacted. This includes reviewing how personal data is collected, processed, and shared across their business operations. They should assess if their current practices align with the principles of data minimisation, accountability, and transparency, which are central to data protection laws.
• Action: Update internal policies and staff training on how to handle personal data securely and responsibly in light of new regulations.

4. Strengthen Third-Party Risk Management (TPRM) Processes

• The Data (Use and Access) Bill may introduce stricter regulations around the use of third-party vendors and the sharing of data between organisations. For SME’s that rely on third-party service providers, such as cloud providers, IT consultants, or marketing agencies, it’s essential to have strong Third-Party Risk Management (TPRM) practices in place to ensure that these partners comply with data protection and cyber security requirements.
• Action: Conduct thorough due diligence and risk assessments of third-party vendors, especially those with access to sensitive data. Ensure that contracts with vendors contain clear clauses on data security, compliance with the Data (Use and Access) Bill, and detailed provisions on how third parties will handle, store, and process data. Additionally, implement a continuous monitoring process to assess the security posture of your third-party vendors on an ongoing basis.

5. Implement a Data Protection Impact Assessment (DPIA) Process

• The Data (Use and Access) Bill may require businesses to conduct Data Protection Impact Assessments (DPIAs) for certain data processing activities that could affect the rights and freedoms of individuals. SMEs should establish a process for carrying out DPIAs, particularly for new projects or systems involving sensitive personal data.
• Action: Develop and document a systematic approach to DPIAs. Ensure that your organisation identifies and mitigates potential risks to privacy when introducing new data processing activities.

The Advantages of a Proactive Approach

Complying with cybersecurity legislation may feel challenging, but it brings invaluable benefits for UK SMEs:

• Stronger Security: By strengthening your security measures, you significantly reduce the risk of cyber attacks and data breaches.
• Competitive Edge: SMEs that proactively comply with regulations distinguish themselves as trustworthy and secure, gaining a competitive advantage.
• Avoiding Legal Consequences: Compliance helps protect against fines, legal action, and the reputational damage that follows.

Act Now to Stay Ahead

The landscape of cyber security regulations is evolving quickly, and UK SMEs must act now to prepare for upcoming changes. By understanding the legislative requirements, investing in top-tier security solutions, and seeking expert guidance, SMEs can transform compliance from a challenge into a strategic advantage.