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Data protection and the Data (Use and Access) Act: what it means for software and AI start-ups

What the Data (Use and Access) Act changes for software firms

Updated 6 November 2026 from public records. 12 items below.

At a glance

The Data (Use and Access) Act 2025 changed parts of UK data protection law and gave government powers to set up "smart data" schemes that let customers share their data with other firms, following open banking. Most of it has applied since 5 February 2026. The Information Commission, which replaced the Information Commissioner's Office on 30 September 2026, is still publishing guidance on it. The Act on legislation.gov.uk.

What it means for your start-up

The Act eases some data protection rules: it adds a list of recognised legitimate interests, relaxes the limits on automated decision-making with safeguards, and allows some cookies without consent. These changes have applied since 5 February 2026, and the Information Commission, which replaced the ICO in September 2026, is still updating its guidance on them.

What to do now

  1. Review your cookie banner and consent flows against the exemptions that have applied since 5 February 2026.
  2. Check any automated decisions your product makes against the new safeguards.
  3. Follow the Information Commission's (formerly the ICO's) guidance updates. They turn the Act into what you actually have to do.

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