What Happens When There is a Data Breach?
In this article, we look at the potential impact of the Data Protection and Digital Information Bill, the consequences of data breaches and data privacy best practices.
The Potential Impact of the Data Protection and Digital Information Bill
The Information Commissioner's Office (ICO) plays a critical role in upholding data protection standards in the UK. Over the years, the ICO has been at the forefront of enforcing the General Data Protection Regulation (GDPR) and the Data Protection Act 2018.
However, compliance requirements and regulatory expectations continue to evolve, prompting regular reviews and updates.
With the UK’s Data Protection and Digital Information Bill making its way through the legislative process, businesses must stay informed about potential changes and their implications.
What is the Data Protection and Digital Information Bill?
The UK Data Protection and Digital Information Bill was introduced to update the country’s data protection framework following Brexit, aiming to make it more business-friendly while maintaining high standards of privacy.
The bill seeks to reduce compliance burdens for organisations, promote innovation and clarify rules around data processing.
The bill is also designed to ensure the UK remains an attractive destination for digital trade while still meeting adequacy requirements for data transfers with the EU and other partners.
Changing Data Protection Landscape:
Post-Brexit Divergence
The UK is moving away from the EU’s GDPR model, simplifying compliance for businesses while retaining core privacy principles.AI and Digital Innovation
With the rise of AI and big data, regulations are adapting to balance innovation with ethical concerns over personal data use.Increased Data Sharing
The bill seeks to improve public sector data sharing for efficiency while strengthening safeguards.Consumer Rights and Security
Individuals still retain key rights, but the bill clarifies rules around subject access requests and automated decision-making.Global Data Transfers
The UK aims to establish new international data transfer mechanisms to facilitate trade.
The bill represents a shift toward a more flexible, business-oriented data protection regime while ensuring personal data remains protected.
Potential Relaxation of Data Protection?
The Data Protection and Digital Information Bill, if enacted, would significantly impact data privacy regulations in the UK by potentially easing restrictions on data processing for businesses. The bill would still aim to maintain individual privacy rights, but allow for greater flexibility in data sharing for certain purposes like research and innovation.
The bill could, however, also reduce individual data access rights and making it easier for organisations to rely on "legitimate interest" as a basis for processing personal data, particularly in areas like national security
The bill is was not passed before the dissolution of the previous Parliament and would need to be reintroduced in a new session.
ICO Compliance and the Reality of Data Breaches
When a company experiences a data breach, the consequences extend far beyond financial penalties. While fines imposed by the ICO can be significant, the true cost of a breach includes reputational damage, operational disruption, employee morale issues and legal battles.
Companies affected by breaches often struggle with customer trust erosion and potential loss of business, making proactive compliance efforts essential.
Historically, businesses were required to appoint a Data Protection Officer (DPO) to oversee compliance, but under the proposed reforms, this requirement may be relaxed.
In the past, organisations sometimes appointed individuals with little expertise. An administrative junior might have been given the role, leading to ineffective data protection strategies.
While a dedicated compliance officer remains a best practice, businesses will have more flexibility under the upcoming regulations.
The Role of the DPO: Then and Now
When GDPR was introduced in 2018, organisations handling large-scale personal data processing were required to appoint a Data Protection Officer (DPO).
The DPO was responsible for monitoring compliance, providing guidance on data protection impact assessments, and serving as a point of contact for regulatory authorities. Their role was crucial in ensuring that businesses adhered to GDPR principles and maintained transparency in data handling.
By 2025, the role of the DPO is evolving with the proposed UK Data Protection and Digital Information Bill.
The mandatory requirement to appoint a DPO may be removed, giving organisations more flexibility in how they manage compliance. Instead of a designated officer, businesses may appoint a senior responsible individual to oversee data protection.
While the structured DPO role might change, the need for robust data governance, risk assessments and regulatory engagement remains vital for organisations navigating the shifting compliance landscape.
Proposed 37.2% Fee Increase for the ICO
In an effort to sustain its operations and support businesses, the ICO is set to see an increase in its annual data protection fees. The UK government has proposed the following adjustments:
Tier 1 (micro-organisations): Increasing from £40 to £55
Tier 2 (small and medium-sized businesses): Increasing from £60 to £82
Tier 3 (large organisations): Increasing from £2,900 to £3,979
These changes are intended to align fees with the size and revenue of businesses, ensuring fairness and financial sustainability for the ICO.
The Consultation Process and Government Rationale
The government launched a consultation on these proposed fee increases in August 2024, closing it on September 26, 2024. The key justifications include:
Ensuring the ICO remains financially stable
Providing continued support, particularly for small businesses
Keeping pace with inflation and growing data protection demands
With the bill currently under review in the House of Lords, businesses should prepare for these fee adjustments while staying updated on any potential amendments.
What Legislation Changes Mean for Businesses
Organisations must remain vigilant in their data protection practices. Even if the requirement for a DPO is removed, companies should still invest in strong compliance measures, data security frameworks and employee training.
The ICO will continue to enforce data protection laws, meaning businesses that neglect their responsibilities risk severe consequences.
For further updates and official guidance, visit the ICO’s website. Keeping an eye on developments in the UK’s Data Protection and Digital Information Bill will be crucial for ensuring ongoing compliance in a changing regulatory landscape.
Impact of Data Breaches Goes Beyond Fines
The UK Information Commissioner's Office (ICO) imposes fines on organisations that fail to protect personal data, with large corporations often facing the most severe penalties.
Major data breaches in big companies typically result in multimillion-pound fines owing to their extensive data handling responsibilities and the potential impact on millions of customers. Notable examples include British Airways (£20 million) and Marriott (£18.4 million) for failing to safeguard customer information. These fines serve as both a deterrent and a warning to other businesses about the consequences of inadequate data protection measures.
In contrast, public sector bodies, such as local councils and government agencies, rarely receive large fines. Instead, they are often subjected to censure - formal reprimands or enforcement notices.
The ICO recognises that imposing heavy financial penalties on taxpayer-funded organisations may not be in the public interest. Instead, it pushes for improved data handling practices through mandatory corrective actions.
For small and medium-sized enterprises (SMEs), the impact of a data breach is usually operational rather than financial.
While fines for SMEs tend to be smaller, the disruption caused by a breach - such as reputational damage, loss of customer trust, and operational downtime - can be severe. Many SMEs struggle to recover from these effects, as they often lack the financial and technical resources to respond effectively to cyber incidents.
Ultimately, while large firms face heavy fines, public bodies risk reputational harm and SMEs deal with business disruption, the ICO's goal remains the same: ensuring organisations take data protection seriously.
Data Privacy Best Practices
Under the UK's Data Protection and Digital Information Bill, organisations should adhere to the following best practices to ensure robust data protection:
Lawful Processing
Ensure all personal data is processed lawfully, fairly and transparently. Identify and document a valid legal basis for each data processing activity, such as consent, contract necessity, legal obligation, vital interests, public task or legitimate interests.Data Minimisation and Purpose Limitation
Collect only the personal data necessary for specified, explicit and legitimate purposes. Avoid processing data in ways incompatible with these purposes.Transparency and Individual Rights
Provide clear, accessible information to individuals about how their data is used. Uphold data subject rights, including access, rectification, erasure, restriction, data portability and objection to processing.Accountability and Governance
Implement appropriate technical and organisational measures to demonstrate compliance. This includes appointing a Data Protection Officer (DPO) when required, conducting Data Protection Impact Assessments (DPIAs) for high-risk processing, and maintaining detailed records of processing activities.Data Security and Breach Response
Establish robust security measures to protect personal data against unauthorised access, loss or damage. Develop and test incident response plans to promptly address data breaches, including notifying the Information Commissioner's Office (ICO) and affected individuals when necessary.International Data Transfers
When transferring personal data outside the UK, ensure appropriate safeguards are in place, such as standard contractual clauses or adequacy decisions, to maintain data protection standards.
By integrating these practices, organisations can align with the Data Protection and Digital Information Bill's requirements, to foster trust and ensuring the responsible handling of personal data.
Facit Data Security Technology
Of note in the list of data protection best practices is the recommendation to “establish robust security measures to protect personal data.”
Many security breaches occur when data is shared with third parties.
Robust personal data protection therefore includes redaction (data masking) capabilities to implement when there is potential for data to be seen by unautorised personnel.
To learn more about Facit video redaction and document redaction for assured compliance to avoid data breaches, complete the form below.
