Data (Use and Access) Bill [ Lords ] (First sitting)

Victoria Collins Excerpts

Committee stage
Tuesday 4th March 2025 Public Bill Committees

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

It is a pleasure to serve under your chairmanship, Mr Turner, and I thank all hon. Members taking part in the Committee as well as the officials. As the Minister said, this is the third iteration of this Bill and it has been extensively covered in Committee before. We rely on and thank former Members and those in the other place who worked on the Bill to get it to where it is. I am pleased that the Government are taking the Bill forward and that it is one of the early Bills in the Session.

There is much to say about the Bill that is positive, and not just because it is a reformed version of our previous two Bills. Although, ironically, the Bill does not reference the term “smart data”, clause 1 brings forward smart data and smart data schemes. That will help to open up a digital revolution, which will build on the successes of open banking in other sectors. We very much support that.

[Victoria Collins (Harpenden and Berkhamsted) (LD)]

It is a pleasure to serve under your chairmanship, Mr Turner. The Liberal Democrats very much support the Bill and the move towards smart data. Every single day, millions of people in the UK unknowingly generate vast amounts of data, whether they are switching energy providers, checking their bank balance or simply browsing the internet. That is why I want to speak to new clause 15.

For the past decade, we have seen the enormous benefits of open banking, which has given customers the power to securely share their financial data with new providers. That has unlocked better deals, personalised financial data and a wave of innovation. I welcome what the Minister said about a strategy, but new clause 15 explicitly seeks to extend the benefits across multiple sectors, from energy to telecoms and beyond, giving consumers and small businesses a real say in how their data is used and the chance to benefit from that.

If Linda, a business owner in Tring, wants to switch to a cheaper energy provider or broadband deal, she faces a mountain of admin and endless calls to suppliers. She has no simple way of exporting her usage data and instantly comparing deals. But what if she did? A multi-sector consumer data right, as proposed by the new clause, would give Linda the ability to export her energy usage securely to a new provider. She could use a digital tool to automatically compare plans, switch to a greener provider and save thousands in operational costs, freeing up her focus for growing a business.

However, it is not just Linda and family businesses. New clause 15 would put real power in the hands of households struggling with the cost of living crisis—an ability to break free from restrictive contracts, find better deals and ultimately reduce bills. This is not just a radical idea: Australia has already implemented the consumer data right across finance, energy and telecoms, leading to an explosion of new services, better competition and savings for consumers. The European Union is moving in that direction, yet in the UK we have not taken that step. However, I accept what the Minister said about our strategy moving forward, which I very much welcome.

New clause 15 does not demand an overnight change. It would require the road map to be published in 12 months and to ensure that technical standards are in place and data sharing is secure and efficient. It includes a phased implementation plan to bring in new sectors gradually as well as consumer protection measures so that is done safely and fairly, with public trust at its core. This is not just about giving consumers more control over their data. It is about driving economic growth and innovation. If we get this right, we can see new fintech and comparison tools so that consumers can slash bills and switch telecom providers faster and more easily. It is about more competition, more choice and more innovation. I urge colleagues to consider the new clause, but I absolutely welcome what the Minister has said. Let us take a step forward and ensure that consumers and businesses have the rights that they deserve over their own data.

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[Chris Bryant]

I note the comments from the shadow Minister, and I am grateful for them.

There is a fundamental flaw in the argument from the hon. Member for North Norfolk that this new clause was tabled in the House of Lords, because what he means is that it was lost in the House of Lords—the House of Lords did not bring it to us. There is a second flaw in the argument, which is that it seems to presume that people will be required to use a digital verification service. That is not true. People will be able to use non-digital systems if they want to in every circumstance. That is an essential part of being able to take forward digital verification services. It may be that a growing number of people begin to find them more useful, reliable and trustworthy than carrying around a set of papers. I am sure that many of us have gone through the tedious process of renting a car—having to turn up with copies of the previous three months of bills sent to your house, and all that. They have to be printed out, of course, and not provided in digital form, and so on. In the end, therefore, this measure will be transformational for the vast majority of people, but that does not mean that we should exclude people.

Where the hon. Member for North Norfolk is absolutely right is that there are many different patterns of digital exclusion. One, which I am very conscious of from my own constituency in south Wales, is physical digital exclusion. Many people in the south Wales valleys simply do not have the physical digital connections, a mobile phone or whatever it may be, to be able to transact their business. The second is the simple issue of poverty. Social tariffs do not even touch the edge for lots of families, because it is yet another bill. Even another £10 or £15 bill a month is one that has to compete with whether they have fresh food on the table for the kids. Another level where people might be excluded relates to age, at the top end and at the bottom end. The hon. Member mentioned nonagenarians, but he could go down to 60-year-olds and find people who simply do not want to use open banking or any kind of digital system, do not have a smartphone and have absolutely no intention of getting one, or, for that matter, do not have any kind of broadband connection to their home. I understand that fully, and that is why the Bill is written as it is, so that it is permissive and not mandatory.

That is an important reason why—although I have listened to the arguments that the hon. Member for North Norfolk has repeated from Big Brother Watch—I am determined to do everything we possibly can to tackle each and every one of the issues of digital exclusion. I have not even referred to skills—people might have some form of disability, might have simply never acquired or wanted to acquire digital skills, or might find using a screen particularly difficult for whatever set of reasons. We want to tackle every single form of digital exclusion, but I do not think that this is the place to do so. We will not be able to tackle digital exclusion by putting an additional measure in the Bill, and that is why, if the hon. Member wants to push this to a vote, I will still resist his new clause. I commend the clause as drafted to the Committee.

[Victoria Collins]

The Minister says that the proposal for digital verification services is not mandatory, so a non-digital version will be available for people to use. May I check what the guarantees are? We have seen this with card payments and even the banks—in Harpenden, we lost all our banks, apart from Nationwide. A very big team campaigned to get a banking hub, because a lot of people said, “You can either go online or drive many miles to get to a bank.” I want to understand what guarantees are in place to secure that non-digital version.

[Chris Bryant]

It is simply that there is no requirement for people to use a digital verification service to be able to secure the service that they want. Obviously, that is a key part of how local government or Government have to deliver their services. They have to think not only about the people who can use digital services, but about those who cannot, for all the reasons that we have laid out.

The hon. Member for Harpenden and Berkhamsted is absolutely right about banks, and it is not just in Harpenden; I do not have a bank in my constituency. I have seen them go one after another after another. We have a banking hub, but even it has had to move. That provides all sorts of difficulties for people who do not want to do their banking in any way other than physically going into a bank. That is why both our Government many years ago, then the Conservative Government for years, were trying to encourage people to use the post office as an alternative means of doing their banking.

That is the pattern that we will have to adopt. Government will always have to be aware. While we may want all the productivity gains and the added security that digital verification services can provide, none the less we need to ensure that others are provided for. That is all provided for in the Bill, and I would say adequately, although the hon. Member may disagree with me. Yet again, I am still resisting any amendment and urge that the clause stand part of the Bill.

[Victoria Collins]

I thank the Minister for his reply, and I do understand. I will leave what happens with new clause 9 to my hon. Friend the Member for North Norfolk, but it is important to state that we have seen a pattern, as my hon. Friend mentioned, of rights being taken away when we know that people cannot access services, and then the problem being solved after it was created. We need to think about a way to secure non-digital services, whether in respect of public services and council tax, our banks, or whatever it is. The Government need to think about how we can protect those services, whether through this Bill or something else, to ensure that those who are excluded can still access a non-digital version of services.

[Chris Bryant]

Even without inspiration, I agree with everything the hon. Lady said. I would add the fact that to park a car in lots of places in the country now we have to go online using a smartphone. When I was in Cardiff recently, the sign said “Go to the app”, but it did not say which app. What frustrates me is that every local authority in the land seems to have adopted a different app, so if we park in more than one local authority area, we have to download app after app, upload all our card details and all the rest of it.

I hope to God that one of the things smart data might be able to solve is the issue of different apps for parking, because the car does not change, we do not change and our banking details do not change; the only thing that changes is our location. To achieve that, though, we must also address the issue of digital exclusion. Lots of areas simply do not have a download speed of 5 megabits per second for mobile coverage, even though Ofcom probably suggests that there is 99% coverage in all areas from all four operators. My problem is that the new clause tries to correct many deficiencies in society, none of which has anything to do with digital verification services.

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[Chris Bryant]

I need to make it absolutely clear, for a start, that the element of clause 45 that we are removing—subsection (6)—makes no reference to sex or gender at all. The words do not appear on the face of the Bill at all. Subsection (6) refers to accuracy and inaccuracy, but it says

“the public authority is able to attest that it…has been corrected through a lawfully made correction,”

and that is obviously aiming at a particular form of lawfully made correction.

Public authorities are already bound in law by data protection legislation—this goes to the point that the hon. Member for Isle of Wight East just made—to ensure that the personal data they process is accurate and, importantly, that it is accurate for the purpose for which it is being processed, and that it is kept up to date where necessary. In essence, what the noble Lords’ amendments to the Bill did was say that we should also be keeping, in every instance, a history of what the data had been. That, I think, is problematic.

The hon. Member is absolutely right about wanting to preserve women-only spaces, which is why public authorities are required to process information that is accurate for the purpose for which it is being processed. In the delivery of healthcare, for instance, when it comes to health screening for transgender and non-binary individuals, the Department of Health and Social Care has comprehensive guidance that sets out the NHS default adult screening programmes that are available in England and lays out who is invited. In England, it is up to GPs to ensure that, as part of processing gender change, the individual is correctly registered for relevant screenings in relation to their sex.

I simply do not buy this argument that we need to make this provision in relation to all digital verification services. Although it is of course right that, in the delivery of prison services or in the health service, or in so many other areas, simple common sense should apply in relation to female-only spaces and wanting to make sure that women are safe, I do not think that this Bill on digital verification services benefits from the introduction of a measure that would effectively mean that in the provision of every digital verification service—whether in regard to the provision of some sensitive service or not—you should make this provision. That is why we tabled amendments 10 and 11, and I urge all hon. Members to support them.

[Victoria Collins]

The Liberal Democrats support the Government amendments. As the Minister highlighted, the amendments are about proportionality in digital verification services. For Liberal Democrats, it is about the balance between trust and helping to protect privacy, as well as getting the data needed to make our society better. We believe that the original proposal had the proportionality right, so we will support the Government’s amendment.

Question put, That the amendment be made.