At a time when the public purse is at the forefront of the nation's attention, the Information Commissioner's Office (ICO) has confirmed it will continue its collaborative regulatory approach towards public sector organisations, following a comprehensive review of the three-year trial that began in 2022.
After conducting a consultation earlier this year, the ICO has published clearer definitions of organisations within scope of the policy and the circumstances under which fines may be issued, while maintaining its emphasis on collaboration and support over penalty-focused enforcement.
This continuation of the ICO's established approach reflects the results of over three years of implementation period. During the trial period, the ICO issued only £1.2m in fines to public sector organisations compared to what could have been £23.2m under traditional enforcement methods. The ICO suggests that this approach has demonstrated that sustainable data protection practices can be achieved more effectively through collaboration than through financial penalties alone, while maintaining robust standards for information rights protection.
The approach applies specifically to organisations defined as 'public authorities' and 'public bodies' under section 7 of the Data Protection Act 2018, which includes authorities covered by Freedom of Information legislation when performing tasks in the public interest. Notably, this excludes parish councils, community councils, and many charities and social enterprises, which remain subject to the ICO's standard enforcement approach, in ensuring that any fine is effective, proportionate and dissuasive.
The established framework
Under this established framework, which has been refined following consultation, the ICO will prioritise guidance, audits, and early intervention over financial penalties. While monetary fines remain available for the most serious breaches – those causing significant harm or demonstrating systemic failures – the regulator will typically deploy alternative enforcement and compliance tools including warnings, reprimands, and improvement notices.
The ICO’s rationale reflects the operational realities facing public bodies: constrained budgets and complex governance structures. Heavy financial penalties can divert critical resources from essential services, which in turn impacts those who use these services unnecessarily. The regulator has therefore maintained its focus on embedding sustainable compliance practices rather than imposing punitive sanctions.
Proven results and ongoing benefits
The ICO is clear that this collaborative approach continues to provide significant opportunities for public authorities to work constructively with the regulator. The ICO's more supportive initiatives, including early engagement, the ICO Sandbox and proactive audit programmes, are specifically designed to help organisations develop robust data protection frameworks. The ICO considers that these efforts have yielded measurable results over the three-year trial period with recent data showing that nearly half of local authorities now achieve 90% compliance rates for Subject Access Requests, representing a substantial improvement in regulatory performance.
Private sector organisations partnering with public bodies should note the broader implications of this regulatory approach. While the ICO’s approach emphasises support over sanctions, compliance expectations continue to rise. Public sector clients will face increased pressure to demonstrate robust accountability frameworks, and they will expect equivalent standards from their suppliers and commercial partners.
Strategic recommendations
- Proactive engagement: Organisations working with public authorities should anticipate enhanced regulatory scrutiny and prepare to demonstrate comprehensive governance frameworks.
- Operational integration: Embed data protection compliance within core business processes rather than treating it as a reactive measure triggered by regulatory intervention.
- Continuous monitoring: While the ICO’s approach may reduce the risk of financial penalties, reputational risks associated with non-compliance remain substantial and require ongoing attention.
As the Information Commissioner John Edwards has emphasised, effective regulation extends beyond penalties to create sustainable improvements in data protection practices. For organisations across both public and private sectors, continuation of this regulatory approach presents an opportunity to review existing frameworks and ensure alignment with the ICO's approach to compliance.
The ICO's decision to continue this approach follows a consultation and review of evidence of its effectiveness. As Information Commissioner John Edwards noted, early engagement on major projects such as the £330m NHS Federated Data Platform has 'ensured privacy, compliance, and public trust from the outset, enabling a successful rollout and continued support for innovative NHS digitalisation.'
Public sector organisations will no doubt welcome the fact they can expect continued emphasis on proactive engagement and collaborative compliance building.
