The EU’s Data Adequacy Decision: What It Means for UK Organisations

• by Anthony Orjally
• Advent IM Blog

The free movement of personal data between the UK and the European Union (EU) has been underpinned by the EU’s adequacy ruling, which acknowledges the UK’s data protection standards as comparable to those of the EU. Originally granted on 28 June 2021, this decision was due to expire on 27 June 2025. However, a recent six-month extension, pushing the expiry date to 27 December 2025, provides additional time for the UK to finalise its Data (Use and Access) Bill—a crucial piece of legislation influencing the UK’s future adequacy status.

Why Does the EU Adequacy Decision Matter?

The adequacy decision plays a critical role in allowing unrestricted data transfers from the EU to the UK without the need for additional legal safeguards. This recognition is essential for businesses operating across borders, ensuring compliance and reducing regulatory burdens. Without it, organisations would need to implement alternative mechanisms, such as Standard Contractual Clauses (SCCs), to continue data exchanges with EU partners.

What Happens If the UK Loses Adequacy?

If the adequacy decision is not renewed beyond December 2025, UK businesses could face substantial challenges. Companies and public sector bodies would need to introduce alternative legal mechanisms for EU data transfers, leading to increased compliance costs.

For instance, the NHS Confederation and Understanding Patient Data have estimated that losing adequacy could cost the NHS tens of millions of pounds due to added administrative and legal burdens. Additionally, broader compliance costs for UK businesses could fall between £1 billion and £1.6 billion, according to industry estimates. The complexity of implementing new compliance frameworks could also slow down business operations and disrupt services.

Actions UK Organisations Should Take Now

Given the uncertainty surrounding the UK’s future adequacy status, organisations should take proactive steps to mitigate risks:

🔹 Stay Updated on UK and EU Data Regulations – Keep an eye on developments related to the Data (Use and Access) Bill and how it may impact the UK’s adequacy status.

🔹 Review Data Transfer Processes – Identify data flows between the UK and the EU, assessing where Standard Contractual Clauses (SCCs) or other safeguards may be required.

🔹 Strengthen Data Protection Measures – Enhance internal policies to demonstrate strong data governance and compliance, which may help in future adequacy evaluations.

🔹 Engage with EU-Based Clients & Partners – Ensure stakeholders are aligned on data protection strategies to maintain trust and operational continuity.

🔹 Seek Legal & Compliance Advice – Consulting data protection specialists can help organisations navigate potential changes and stay compliant.

Conclusion

The extension of the adequacy decision offers temporary relief, but the long-term outlook remains uncertain. UK organisations must act now to prepare for possible regulatory shifts. By assessing data flows, improving compliance measures, and staying informed, businesses can minimise disruption and ensure data protection standards remain robust, regardless of future EU rulings.

How is your organisation preparing for potential changes to UK-EU data transfers?

Written by Ellie Hurst, Advent IM Commercial Director.