ICO discusses time-limited personal data processing sandbox exemptions

Published: 30/07/2026
| ICO

The Information Commissioner's Office (ICO) has published findings from its Statutory Regulatory Sandbox (SRS) project and supporting research. The report aims to inform government policy as ministers progress the Regulating for Growth Bill (announced in the King's Speech) and the AI Growth Lab.

The ICO established that a data protection SRS is feasible, though critical challenges must be addressed. These include preserving the independence of the ICO and safeguarding individual rights through robust alternative governance mechanisms. Public trust remains central, as individuals support novel data use provided it delivers clear public benefit. Although demand for an SRS is niche, the potential impact is significant if key economic and societal benefits can be unlocked faster.

However, implementing an SRS requires legislative changes to data protection laws, leaving final decisions to the government. Limitations in existing sandboxes, such as restrictions on the use of personal data, can hinder innovation, economic growth, and regulatory clarity. As a consequence, the ICO has committed to streamlining its current sandbox initiative to make it faster with clearer outcomes.


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