Government passes Data Bill after long legislative battle

The Commons overruled the Lords to pass the legislation without AI safeguards

Big Ben and Parliament at Dusk on the River Thames

The UK's newest data legislation removes some onerous requirements but provides no protections for creatives battling AI IP theft.

The UK's Data (Use and Access) Bill cleared its final parliamentary hurdle on Wednesday, after weeks of legislative back-and-forth between the House of Commons and House of Lords.

Once the Bill receives Royal Assent it will become the Data (Use and Access) Act 2025, heralding significant changes for the data protection and privacy landscape.

First introduced as the Data Protection and Digital Information (DPDI) Bill under the Conservative government, the proposal struggled through multiple administrations before being abandoned during the "wash-up" phase ahead of the last general election.

The new Labour-led version, published on 23rd October 2024, retained much of the DPDI Bill's structure but removed some of its more contentious elements.

For example, the DPDI requirements for all companies to undertake data protection impact assessments and to have a data protection officer do not appear in the new legislation.

Controversy still lurks around AI

The final phase of debate between Commons and Lords focused not on privacy, but on artificial intelligence and copyright.

At the heart of the dispute was a proposed amendment that would have required tech companies to disclose any use of copyrighted material in training AI models, a clause backed by artists such as Sir Paul McCartney and Dua Lipa.

They, along with their supporters in the Lords, warned that failing to include this safeguard would allow AI developers to exploit UK-created content without permission or payment.

Sir Elton John called the current approach "thievery on a high scale," adding that artists face an existential threat if AI models are trained on their work without oversight or compensation.

Despite mounting pressure, the government rejected the proposed amendment, arguing that it would stifle AI innovation and risk the UK falling behind in a rapidly evolving, globally competitive sector.

Ministers pointed to a separate, ongoing consultation on copyright and AI, as well as plans for a dedicated AI bill in the future (although the Artificial Intelligence (Regulation) Bill is a long way from passing into law).

The disagreement caused the Bill to bounce repeatedly between the House of Commons and House of Lords, with neither side willing to budge.

However, according to the Parliaments Act, the Lords can only reject a bill three times. After this, the Speaker can bypass the Lords and present a bill for Royal Assent.

"We can only do so much here. I believe we've done it. It's up to the government and the other place [the Commons] now to listen," said composer and broadcaster Lord Berkeley.

What the Bill actually does

While the AI-related controversy stole headlines, the Data (Use and Access) Bill itself contains other sweeping data reforms:

The Department for Science, Innovation and Technology (DSIT) says the legislation will free NHS staff and police from over a million hours of admin work, support grieving families and improve online safety.

"This Bill is about using data to grow the economy and improve people's lives," the DSIT said in a statement.

Though the government has declared victory, the battle may have only just begun. Baroness Kidron, a filmmaker who spearheaded the Lords' amendment, called the bill's passage a "pyrrhic victory at best."

She argued that by omitting protections for creators, the UK was essentially giving away national intellectual assets to predominantly American tech firms.

The News Media Association, which supported the Lords' position, issued a warning through its CEO Owen Meredith, who said: "Parliament, and the UK's 2.4 million creative workers, will fight tirelessly to ensure our world-renowned copyright law is enforced."

As the Bill moves to become law, attention now turns to the government's promised AI legislation and copyright consultation, both of which will likely reignite the debate.

For many, the final passage of the Bill is just the beginning.