Open consultation

Information sharing for public service delivery: expanding the information sharing powers in Part 5 (chapter one) of the Digital Economy Act 2017 to support passported benefits and reduce fuel poverty

Published 29 July 2025

Applies to England, Scotland and Wales

Ministerial foreword

The government is committed to delivering 5 missions that will shape the UK’s future – kickstart economic growth, build an NHS fit for the future, create safer streets, break down the barriers to opportunity, and make Britain a clean energy superpower.

Improving public service delivery through effective information sharing is essential to delivering these priorities. By streamlining information and unlocking the power of data, the government can develop programmes that provide financial support to low income and vulnerable households, while also addressing the root causes of disadvantage. This includes helping families manage the cost of living, access educational opportunities and transition to more sustainable, energy efficient practices.

This consultation proposes legislative changes to facilitate information sharing under Part 5 (chapter one) of the Digital Economy Act 2017 (DEA) and to support the delivery of important initiatives.

First, it seeks to create a new objective, and add additional specified persons, under the Public Service Delivery power in section 35 of the DEA. This will empower certain government bodies and certain public authorities, including local government and schools, in England, Wales and Scotland to share information to facilitate the targeting and delivery of education related passported benefits to support families with children in education. These benefits allow children experiencing economic disadvantage to engage in education more fully, leading to better educational outcomes and helping to break down barriers to opportunity.

The government is committed to breaking down those barriers and this proposal aligns with our ambition to reduce child poverty across the UK. We recognise that economic disadvantage can have long-term consequential effects on life chances and it should never be a barrier to a child’s success. This is why we are focused on giving all children and young people the best possible start in life.

The second proposal seeks to amend section 36 of the DEA relating to fuel poverty, to enable the introduction of a debt relief scheme to reduce energy debt. This would support low income households that have accrued energy debt during the cost of living crisis. By harnessing data and sharing information securely, the government can ensure that support is given to eligible individuals and households, reducing financial burdens and helping to prevent further hardship.

The use of information to improve access to passported benefits and targeted financial support demonstrates the tangible benefits that can be realised when UK government departments work closely together to deliver better, joined up services and better outcomes for citizens. Efficient information sharing across the public sector should be the norm, rather than the exception.

As Parliamentary Under-Secretary of State for Science, Innovation and Technology, I am committed to harnessing the power of data to unlock and deliver smarter, more integrated public services whilst upholding the highest standards of security, privacy and trust. Our goal is to ensure data is used to create meaningful, positive benefits for all our citizens across the nation.

Baroness Jones of Whitchurch
Parliamentary Under-Secretary of State for Science, Innovation and Technology

Why we are consulting

This consultation sets out the Department of Science, Innovation and Technology’s proposal to make changes affecting powers in the Digital Economy Act 2017 (DEA) in order to enable information sharing to support the delivery of passported benefits (such as free school meals) and to provide support to individuals and households with energy debt through the introduction of an energy Debt Relief Scheme.

Consultation details

• Issued: 3pm on 29 July 2025
• Respond by: 23:59 on 23 September 2025

Enquiries to:

Data Sharing Legislation Team
Government Digital Service (GDS)
Department for Science, Innovation and Technology
7th Floor, The White Chapel Building
10 Whitechapel High Street
London
E1 8QS

Email: dea-consultation2025@dsit.gov.uk.

Consultation reference: information sharing for public service delivery

Audiences:

The consultation invites views from:

• members of the public
• local authorities
• schools
• energy companies
• other interested parties

Territorial extent: the territorial extent of this consultation is England, Wales and Scotland.

How to respond to this consultation

Submit your responses online at GOV.UK Forms.

This consultation will run until 23:59 on 23 September 2025.   

Alternatively, if you wish to submit information which cannot be provided via a web form or would prefer to respond via email, please send your response to dea-consultation2025@dsit.gov.uk.

When responding, please state whether you are responding as an individual or representing the views of an organisation.  

Your response will be most useful if it is framed in direct response to the questions posed, though further comments and evidence are also welcome.

In exceptional circumstances, if you need to submit a hard copy or require another format (e.g. braille or large font) please contact dea-consultation2025@dsit.gov.uk.   

Confidentiality and data protection

Information you provide in response to this consultation, including personal information, may be disclosed in accordance with UK legislation (the Freedom of Information Act 2000, the UK General Data Protection Regulations, the Data Protection Act 2018 and the Environmental Information Regulations 2004).

If you want the information that you provide to be treated as confidential please tell us, but be aware that we cannot guarantee confidentiality in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not be regarded by us as a confidentiality request.

We will process your personal data in accordance with all applicable data protection laws. See our privacy policy.

Please do not share special category personal data or criminal offence data if we have not asked for this unless absolutely necessary for the purposes of your consultation response. By ‘special category personal data’, we mean information about a living individual’s: race, ethnic origin, political opinions, religious or philosophical beliefs, trade union membership, genetics, biometrics, health (including disability-related information), sex life or sexual orientation. By ‘criminal offence data’, we mean information relating to a living individual’s criminal convictions or offences or related security measures.

We will summarise all responses and publish this summary on GOV.UK. The summary will include a list of names or organisations that responded, but not people’s personal names, addresses or other contact details.

Quality assurance

This consultation has been carried out in accordance with the government’s consultation principles.

If you have any complaints about the way this consultation has been conducted, please email: dea-consultation2025@dsit.gov.uk.

Executive summary

1. Part 5 of the DEA was designed to reduce legal barriers to information sharing and enable public authorities to share information, including personal data, for specific purposes. The Public Service Delivery (‘PSD’) powers contained in Chapter 1 of Part 5 of the DEA allow specified public authorities to share personal information for specific purposes, referred to as objectives, which are set out in regulations. The PSD power in section 35 allows specified public authorities, listed in schedule 4 of the DEA, to disclose information, including personal data, for the purpose of objectives which are set out in regulations. This information sharing power is aimed at improving or targeting public services, or facilitating benefits (financial or otherwise) to individuals or households in order to improve their wellbeing; and supporting the delivery of relevant bodies’ functions or the administration, monitoring or enforcement of those functions.

2. The power in section 35 of the DEA is subject to amendments by section 123 of the Data (Use and Access) Act 2025, once section 123 is brought into force, but those changes are not relevant for this consultation.

3. The PSD power in section 36 allows information sharing between government departments and energy suppliers to support individuals in fuel poverty, subject to 2 conditions. First, the disclosure must aim to assist people living in fuel poverty by reducing energy costs, improving energy efficiency, or enhancing their health or financial wellbeing. Fuel poverty is defined in section 36(10) as the relationship between a household’s annual income and the cost of maintaining a reasonably warm home. Second, the information must be shared with the intention that it will be used by suppliers in connection with specific schemes and legislative provisions listed in section 36(3), such as those under the Energy Act 2010, the Gas Act 1986, the Electricity Act 1989, or the Social Security Act 1990.

4. This consultation consists of 2 parts, seeking views on the following changes in relation to the PSD powers in Part 5 of the DEA:

a) the introduction of a new information sharing objective, and the addition of specified persons, through regulations under section 35 of the DEA. This is to support the delivery and take-up of education-related passported benefits, which are benefits that an individual is eligible for because they receive other benefits

b. an amendment to the fuel poverty power in section 36 of the DEA to expand information sharing and enable the delivery of an energy Debt Relief Scheme to support households with energy debt

The purpose of this consultation

5. This consultation sets out a proposal to introduce a new objective, and add new specified persons to schedule 4, through regulations under section 35(3) and (7) of the DEA and to amend section 36. In summary these changes will enable:

• information sharing between UK government departments, such as His Majesty’s Revenue and Customs (HMRC), the Department of Work and Pensions (DWP) and the Department for Education (DfE), and certain public authorities, such as local authorities and schools, across England, Wales and Scotland to improve the targeting and delivery of education-related passported benefits outlined in this consultation
• information sharing between government and gas and electricity suppliers to allow for an energy Debt Relief Scheme to support individuals and households that have accrued energy debt during the cost of living crisis

6. The consultation aims to seek views from citizens, government departments, public authorities, energy suppliers or any organisation that considers it could be affected by the proposed changes in relation to the PSD powers in Part 5 of the DEA. We also welcome responses from other interested persons or members of the public.

Part 1: the passported benefits objective

The Digital Economy Act 2017 – section 35

7. This part of the consultation sets out the government’s proposal to establish a new information sharing objective under section 35 of the DEA and to add new specified persons to schedule 4. Section 35 enables a person specified in schedule 4 (‘specified person’) to disclose information it holds in connection with any of its functions to another specified person for the purpose of an objective specified in regulations. In the DEA, a specified person is a public authority, such as a government department, a local authority or a school. This provides specified public authorities with information sharing powers, ‘objectives’, to improve the targeting and delivery of public services and improve the wellbeing of individuals and households. Specified persons can exercise the information sharing powers for the purpose of an objective, provided that they and the other bodies to be involved in the information sharing are listed in the accompanying schedule 4 of the DEA and the regulations for the relevant objective. The specified persons must also comply with the statutory Code of Practice.

8. New objectives can be created through regulations by the government or devolved authority (as applicable) providing they meet the criteria in section 35 of the DEA and secure parliamentary approval. The criteria are as follows:

• condition 1: the purpose is the improvement or targeting of a public service provided to individuals or households, or the facilitation of the provision of a benefit (whether or not financial) to individuals or households
• condition 2: the purpose is the improvement of the wellbeing of individuals or households. The reference to the wellbeing of individuals or households includes: their physical and mental health and emotional wellbeing, the contribution made by them to society, and their social and economic wellbeing
• condition 3: the purpose is the supporting of the delivery of a specified person’s functions, or the administration, monitoring or enforcement of a specified person’s functions

9. The regulations must specify the objective or objectives for which information may be disclosed and identify the specific bodies that may rely on the objective or objectives. The affirmative resolution procedure applies for such regulations, which means that draft regulations need to be approved by both Houses of Parliament before they can be made. The Code of Practice^{[footnote 1]} for the PSD power provides the principles and guidance on using the power and on ensuring compliance with data protection legislation.

10. Existing objectives under section 35 are set out in the Digital Government (Disclosure of Information) Regulations 2018^{[footnote 2]} and the Digital Government (Disclosure of Information) (Identity Services) Regulations 2024^{[footnote 3]}.

11. The proposed passported benefits objective will introduce a new information sharing objective under section 35 to improve the targeting and delivery of education-related passported benefits. Eligibility for the listed education-related passported benefits is determined by an individual’s eligibility and receipt of other benefits, for example, Universal Credit. This objective will give public authorities, such as local authorities and educational institutions, a legal gateway to access information from UK government departments, such as HMRC, DWP and DfE, to identify and target entitlement for education-related passported benefits. This will help increase access to vital support for families experiencing economic difficulty. Further, it will improve the delivery of additional funding to support educational institutions with a high proportion of pupils from low income households.

The proposal – introducing a new information sharing objective under the Digital Economy Act 2017

12. The UK government, in partnership with the Welsh Government and Scottish Government, is proposing to create a new PSD objective, the education passported benefits objective, under section 35 of the DEA.

13. The education passported benefits objective would allow certain public authorities, such as local authorities and educational institutions across England, Wales and Scotland, access to information from UK government departments, such as HMRC, DWP and DfE, to identify and target entitlement for education-related passported benefits. This will help increase access to vital support for families experiencing economic difficulty. Further, it will improve the delivery of additional funding to support educational institutions with a high proportion of pupils from low income households.

The passported benefits in scope of the proposed objective are:

England

i. Free School Meals (FSM) and free school meals in further education
ii. 16-19 Bursary Fund
iii. Pupil Premium and other deprivation-related funding, including but not limited to the schools national funding formula (NFF) deprivation factor

Scotland

i. Free School Meals (FSM)
ii. Education Maintenance Allowance (EMA)
iii. School Clothing Grants
iv. Scottish Attainment Challenge ^{[footnote 4]}

Wales

i. Free School Meals (FSM)
ii. School Essentials Grant
iii. Pupil Development Grant

14. In accordance with section 2.4 the Code of Practice, the proposed new objective has been approved by the Public Service Delivery Review Board^{[footnote 5]}.

The current application process

15. The current application process varies for the benefits listed in paragraph 13. Individuals can be required to provide evidence of their income separately for each qualifying benefit(s) they may be in receipt of, and to complete a full application to submit to the relevant local authority or school. This is a lengthy process that can prove onerous and complex to applicants.

16. Local authorities have indicated that there are several reasons for low uptake of the benefits including:

• unawareness of the benefits and support available
• a belief that their income or circumstances render them ineligible or exclude them from support
• feelings of stigmatisation through having to contact multiple departments to request documentation to evidence eligibility and to submit an application
• being overwhelmed by other challenges faced following a life change and therefore delaying making an application

17. The proposed objective would enable the government to share information with local authorities and schools to help identify and target families that may otherwise struggle to evidence their eligibility and complete the full application process independently.

18. At present, the DfE provides an online Eligibility Checking Service in support of free school meals for England and Wales to enable schools and local authorities in England and Wales to quickly and easily check parents’ eligibility without needing to provide extensive documentation. However, some parents still struggle to apply for the reasons listed in paragraph 16. The information sharing objective will support the existing process and delivery of free school meals awards.

19. The current allocation system for Pupil Premium and other listed deprivation funding, as well as the Welsh Pupil Development Grant, involves a process of schools and colleges, or local authorities in Wales, gathering and evidencing eligibility of pupils. Effective data sharing using information that the government already holds would simplify this process and deliver efficiencies.

20. For the Scottish Attainment Challenge, the Scottish government reports that due to universal entitlement for many age groups, the free school meals criteria used to allocate the Scottish Attainment Challenge and other local authority funding is no longer a reliable indicator of contemporary deprivation across primary schools. The Scottish Government is working through the process of accessing data that would strengthen the evidence base on school-level deprivation.

Benefits of access to the passported provisions

21. Access to the specified passported benefits is envisaged to deliver a range of benefits to children, young people and their families, including some or all of the following.

• Take-up of the provisions is known to improve the emotional wellbeing of children and young people in education.
• The provision of a nutritious school lunch fosters a nurturing learning environment and can deliver consequential positive effects on behaviour and attainment.
• For many families, the cost of school clothing can present a significant barrier to pupils’ participation and attendance at school. This can have a considerable impact on children and young people’s wellbeing and a negative effect on their experience, achievements and outcomes at school. The grant provision to support families with this cost will ensure that children feel equipped and prepared for school.
• The provision of funding can also be a significant source of support for young people from low income families, to enable them to continue their education and reach a positive destination, such as employment or further and higher education. Financial support will help break down barriers to opportunity, giving young people and their families options on deciding whether to remain in education.
• Take-up of the support provided by the passported benefits is also expected to deliver a broader range of benefits to low income families and households including improved wellbeing and financial prospects.
• Improved targeting of funding for education institutions to support disadvantaged pupils improves the quality of the education setting, allowing schools to form targeted approaches to addressing prevalent issues that impact learning at school, for example, funding a school counselling service to improve wellbeing, or funding special educational needs and disabilities (SEND) lessons to reinforce learning. Funding for schools allows for positive interventions and measures to be put in place, having a positive impact on those who attract the funding, as well as the wider spectrum, securing better educational outcomes and positive experiences for pupils.

Benefits of information sharing

22. Information sharing to support the delivery and uptake of the passported benefits is expected to deliver some or all of the following benefits:

• families can benefit from a more streamlined and simplified application process
• local authorities will be able to identify and target households that are likely to be eligible for the passported benefits through the effective use of information
• the government and local authorities across England, Wales and Scotland will be able to exercise a more joined-up approach to reduce the impact of financial constraints on families with children in education
• the information sharing will enable better aligned services, minimising any feelings of stigmatisation arising from the need to approach multiple public authorities to make an application
• local authorities will be able to better exercise their functions and target support to those who need it the most
• information sharing is likely to increase take-up of the benefits, reaching out to a cohort of households that are currently not in receipt, ensuring that those eligible are able to access their entitlement
• families will be contacted by local authorities to inform them of their likely eligibility, making sure that those who may be entitled are aware of the local offer, mitigating one of the main reasons for low uptake
• time currently taken gathering and checking evidence for eligibility of pupils and students could be reduced
• the process for allocating additional school and other educational settings funding will be simplified and improved through the use of government-held data, providing funding to schools with a high proportion of pupils from low income households. This means that funding can be better targeted to reach the most disadvantaged

What is the new information sharing objective?

23. The government proposes to add a new PSD objective to allow the sharing of personal information in order to help identify eligible individuals or households, and thereby support the improvement of take-up of the passported benefits in England, Wales and Scotland.

It would enable information sharing from UK government departments such as HMRC, DWP and DfE with certain public authorities across England, Wales and Scotland. This would provide the relevant public authority, local authority or education institution with access to the necessary information to enable them to identify, contact and deliver support to eligible families and households.

Who will use the information sharing power?

24. The proposed public authorities that would be able to exercise the power, which are currently in schedule 4, for the purposes of the new passported benefits objective will be:

a) His Majesty’s Revenue and Customs (HMRC)
b) the Secretary of State for Work and Pensions (DWP)
c) the Secretary of State for Education (DfE)
d) the proprietor of a school within the meaning of the Education Act 1996
e) the proprietor of an Academy within the meaning of that Act
f) the responsible person in relation to an educational institution as defined by section 72(5) of the Education and Skills Act 2008 (other than a person within paragraph 23 or 24)
g) a county council in England
h) a district council in England
i) a London borough council
j) a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009
k) a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023
l) the Common Council of the City of London in its capacity as a local authority
m) The Scottish Ministers
n) Scottish local authorities as defined under section 2 of the Local Government etc. (Scotland) Act 1994
o) a county council in Wales
p) a county borough council in Wales
q) a community council in Wales
r) a person providing services in connection with a specified objective (within the meaning of section 35) to a specified person who
(a) falls within this Part of this schedule
(b) is a public authority

25. The government is also consulting on including additional public authorities to schedule 4 and specifying them for the purposes of the proposed education passported benefits objective. This will involve amending existing entries and adding new public authorities to schedule 4. These additional public authorities will support the delivery of the passported benefits to individuals:

a) a Proprietor of an Academy school, within the meaning of section 1A of the Academies Act 2010
b) a Proprietor of an alternate provision Academy, within the meaning of section 1C of that Act
c) a Governing body of a maintained school, within the meaning of the School Standards and Framework Act 1998 (see section 20(7) of that Act)
d) a Governing body a non-maintained special school, being a school that is approved under section 342 of the Education Act 1996
e) a Management Committee of a pupil referral unit, within the meaning of section 19 of the Education Act 1996

Who may use the information and why?

26. The public authorities that are able to use the information outlined in paragraphs 24 and 25 are specified persons listed in, or to be added to, schedule 4 of the DEA.

27. The information that will help improve the identification, targeting and consequent take-up of the passported provisions is held by UK government departments HMRC, DWP and DfE. The proposed information sharing objective will allow public authorities in England, Wales and Scotland access to the necessary data to determine likely eligibility.

28. Local authorities can use the information to contact households to inform them of their likely eligibility for free school meals, provide information on the local offer and how to make an application.

For example, HMRC would send information to DWP. DWP would then share information indicating likely eligibility to local authorities, who would be able to use the data to identify households with likely eligibility and inform them directly of their likely entitlement.

The use of information will ensure that eligible households are aware of the passported provisions, ensuring that a lack of awareness is no longer a reason for low take-up.

29. Education institutions support the allocation and take-up of the 16-19 Bursary Fund, as well as pupil premium and related deprivation funding in England. The scope of the proposed objective would enable information sharing where necessary to ensure that eligible pupils are identified, and financial support is made accessible to students and education institutions, respectively.

30. For example, for the allocation of Pupil Premium, the Pupil Development Grant and the Scottish Attainment Challenge, HMRC and DWP would share information on the household income of families matched to pupil data to confirm eligibility to either DfE, local authorities in Wales or Scottish ministers. This information could then be used to assess eligibility. Once identified, the data will be aggregated and this will then be used to draw down and allocate funds to the relevant education institutions.

What information will be shared?

31. The government will share the minimum number of information items necessary for the purposes outlined in this proposal. An illustrative example of the information items which could be shared include:

• name of parent or carer
• address and contact details
• names and number of eligible children in the household
• age of each eligible child;
• whether there are other dependent children in the household benefit flag to check if the household is in receipt of qualifying benefits, or an income to check if the household exceeds the threshold for eligibility
• flag, such as Children in Low Income Family criteria, to check if children live in a household with low income, to check whether children meet the criteria for eligibility
• earnings from employment (including earnings from previous years), private pensions, annuities or any other income accessed using the Verification of Earnings and Pensions system (VEP) or the equivalent system operating for this purpose at the time the check is undertaken
• flags, including household status as: a lone parent family, a family that includes disabled family members, a large family with 3 or more children, a family with a mother aged under 25, a minority ethnic family, or a family with a child aged under 1, to check if children meet the criteria for additional support as priority families under Scotland’s Tackling Child Poverty Delivery Plan.

32. Prior to sharing any information, all parties to the information share will complete an agreed business case, information sharing agreement, data protection impact assessment and security plan in line with the Code of Practice. Information sharing will take place in accordance with data protection legislation, the Commissioners for Revenue and Customs Act 2005 and the Information Commissioner’s Office (ICO) Data Sharing Code of Practice.^{[footnote 6]}

33. All parties to the information share will ensure that information is held securely, to the appropriate security and information management standards, maintained to the appropriate quality, used only for the specified purpose, kept only as long as necessary and then securely deleted.

34. Any and all information shares under the proposed objective will be included in the register of information sharing agreements. This is a record of information sharing facilitated by chapters 1 (Public Service Delivery), 2 (Civil Registration), 3 (Debt) and 4 (Fraud) of part 5 of the DEA.

What is the likely impact of the new objective?

35. This proposed information sharing objective will ensure public authorities are able to target the entitlement to the passported benefits more effectively, ensuring that pupils from low income families are able to access their entitlement fully. This will help ensure that the significant investment in support for low income families across England, Wales and Scotland delivers its full intended impact.

36. Access to free school meals, education maintenance allowance, the 16-19 Bursary Fund, and school clothing and essentials grants is envisaged to deliver a range of benefits:

• children’s emotional wellbeing and social participation improves
• children will benefit from the provision of a nutritious school lunch
• having the correct uniform will ensure that children are prepared for school, with consequential positive outcomes, experiences and achievements while removing stigma
• additional funding to pupils can support young people from low income households continue their education beyond the age of 18, easing financial pressures and ensuring they have the resources needed to fully engage in their education
• wellbeing will improve for low income households
• households and pupils will benefit from financial support which is expected to minimise the financial barrier to accessing education, as it will help cover essential costs that might otherwise limit full participation or attendance in education

37. This new information sharing legal objective will also support the delivery of funding for educational institutions with pupils from low income households. Improved allocations for Pupil Premium and related deprivation funding as well as the Scottish Attainment Challenge and Welsh Pupil Development Grant is expected to reduce educational inequality and deliver the following benefits:

• improvements to the educational environment – examples could include:
  

i. counselling and pastoral services to improve children’s wellbeing
ii. attendance officers to support students and families increase attendance rates, which supports their attainment
iii. providing adequate resources (textbooks, laptops), equipment and extra-curricular activities to enrich and support educational equality

• improvements to the quality of education – examples could include:
  

i. funding Learning Support Assistants to support students with SEND
ii. providing Continuing Professional Development (CPD) to improve teaching for students with SEND and disadvantaged pupils

Why introduce the objective now?

38. The government has committed to breaking down the barriers to opportunity and help every child to achieve and thrive at school.^{[footnote 7]} This proposed objective supports the Blueprint for modern Digital Government^{[footnote 8]} in joining up public services, making it easier for people to interact with the government and access education-related benefits to support every child to achieve and thrive at school.

39. Public authorities across England, Wales and Scotland also report that not all eligible households claim the support they are entitled to.

• Scottish local government finance returns for 2021-2022 indicated that 72,500 school clothing grants were awarded in secondary schools, but only 55,000 secondary pupils were registered for free school meals. The criteria for awards for both provisions are similar, therefore it is expected that there is a significant number of households who are not in receipt of the benefits they are entitled to.

• In Scotland, the recent expansion of universal free school meals to more stages of primary school means that it is no longer a suitable indicator of need, and so can no longer be used for targeting funding.

• The latest date on educational maintenance allowance (EMA) shows that the number of EMA recipients receiving at least one payment in 2023-2024 was 21,540. This is a decrease from 22,225 in 2022-2023. There could be eligible young people who are not aware of EMA support and are therefore not applying.

• Research by the Bevan Foundation in Wales estimated that in 2022, 37,041 of secondary school pupils were eligible for free school meals with only 27,272 claiming. This equates to approximately 73% take-up. The award criteria for the Schools Essential Grant is based on those who access free school meals and therefore it can be assumed that the take-up is the same.

How does the information sharing align with UK government priorities?

40. The UK government has a clear duty to support citizens in areas where they are responsible, such as reserved benefits, and to ensure that the most vulnerable in society get the help that they need. The proposed objective is designed to enable information sharing to improve the take-up of passported benefits that are in scope of this proposal. This government has committed to breaking down barriers to opportunity. The proposal will help make progress towards this objective by:

• reducing barriers to accessing passported benefits through the use of government-held information to simplify the application process
• ensuring eligible households are made aware of the benefits and their entitlement, improving efforts to reach a cohort of families who are not aware of the offer or their eligibility
• giving children and young people access to benefits and provisions that will deliver consequent positive outcomes, increasing attainment and breaking down barriers to opportunity
• reducing financial strain on low income households and putting money back in families’ pockets, contributing to the government’s commitment to tackling child poverty
• delivering additional funding to education institutions where disadvantage is prevalent, and, in doing so, supporting the implementation of positive measures to improve the quality of education and the educational setting

41. Implementation of a new information sharing objective will help the Scottish government deliver on its commitment, set out in the National Performance Framework, to enhance children’s life chances by supporting families and ensuring that childhood is free from poverty and hunger.

42. The Scottish Government is committed to eradicating child poverty^{[footnote 9]}. The Child Poverty (Scotland) Act 2017 set stretching targets for child poverty reduction, placing a duty on Scottish Ministers to publish 3 delivery plans over the life of the legislation. The act sets in statute a robust framework for action, reporting and scrutiny – ensuring a consistent focus on delivering the 2030 targets and galvanising support for further action on child poverty both locally and nationally. This includes the duty on local authorities and relevant health boards to publish annual local child poverty action reports, which must describe both measures taken in a given reporting year and planned in future years, which contribute to the meeting of the child poverty targets. The Scottish Government’s approach is focused on addressing the 3 drivers of child poverty reduction – income from employment, cost of living and income from social security and benefits in kind – and on supporting families at greatest risk of poverty through person-centred and integrated services and approaches.

43. Tackling poverty is a core Programme for Government (PfG) cross-cutting commitment in Wales and embedded across portfolios, as reflected in the Child Poverty Strategy for Wales 2024. As part of actions to reduce costs and maximise the incomes of families, the proposed objective will support the ambition in Wales to streamline the design and delivery of Welsh benefits, working towards the vision of a compassionate, consistent, person-centred approach which enables people to only tell their story once to receive all the financial support they are entitled to, regardless of where they live in Wales. In addition, Mission 6 (Data and Collaboration) of the Welsh Government’s ‘Digital Strategy for Wales’^{[footnote 10]} sets out commitments to removing barriers to data sharing to ensure that citizens receive better, seamless services because data is shared and reused across the public sector.

Why is the UK government taking this proposal forward?

44. The regulations would add a new objective for which certain public authorities in England, Wales and Scotland may share information, including UK government departments such as HMRC and DWP. Although education is a devolved matter in Wales and Scotland, Welsh ministers and Scottish ministers are only responsible for a new PSD objective which (i) relates to a devolved matter and (ii) solely enables specified Welsh or Scottish bodies to disclose information for the purpose of the objective (see section 45(2)(c) and (4)(c) of the DEA). The Secretary of State will therefore be responsible for taking this proposal forward in regulations to be approved by both Houses of the UK Parliament.

Does this information sharing objective apply across England, Wales and Scotland?

45. Section 35 of the DEA extends to the whole of the UK (see section 119 of the DEA) but it has not yet been commenced in Northern Ireland. The territorial extent of the proposed regulations will therefore be limited to England, Wales and Scotland. The passported benefits in scope of this proposal varies regionally. Please refer to paragraph 13 for a list of passported benefits specific to each territory.

Will information sharing comply with the relevant data protection requirements?

46. Yes, the information sharing will comply with the relevant data protection requirements. Section 40(8) of the DEA confirms that section 35 does not authorise disclosure that contravenes the data protection legislation. The purpose of the underpinning Code of Practice^{[footnote 11]} is to provide a set of principles and guidance for the use and disclosure of information under DEA powers. The Code of Practice also refers to other requirements when sharing information, including data protection legislation. Data protection law requires, among other things, that personal data must be processed lawfully, fairly, in a transparent manner and only for specified and legitimate purposes.

47. Section 35 of the DEA may provide a basis for processing (including sharing) of personal data pursuant to Article 6(1)(e) of the UK GDPR – processing necessary for the performance of a task carried out in the public interest or in the exercise of official authority.

Will you prepare a data protection impact assessment?

48. The Code of Practice sets out that public authorities involved in the data share must carry out a data protection impact assessment before sharing data. The data protection impact assessment will assess the potential benefits of the information sharing agreement against the risk of, or potential for, negative effects – such as an erosion of personal privacy.

Will the information sharing comply with current best practice?

49. Yes, the proposed information sharing complies with current government practice, including the Data Ethics Framework, the Government Data Quality Framework, initiatives for data standardisation work being taken forward by the Data Standards Authority and the Scottish Government Digital Strategy.The information sharing will also support Mission 6 (Data and Collaboration of the ‘Welsh Government’s Digital Strategy for Wales’^{[footnote 12]} and comply with the Welsh Accord for the Sharing of Personal Information (WASPI).^{[footnote 13]} All parties to the information share will periodically review the arrangements to ensure that compliance is consistent throughout implementation.

Impact assessment

50. An equalities impact assessment is underway in respect of the DfE, Scottish Government and Welsh Government proposals to assess any equality issues that may arise as a result of the implementation of these draft regulations.

51. This proposed objective has no direct impact on UK businesses. Therefore, additional impact assessments have not been carried out.

52. Overall, establishing the new objective under the public service delivery power will help deliver valuable economic and social impacts for citizens.

Consultation questions for the passported benefits objective

Conditions

New objectives can be created through regulations by the government or devolved authority (as applicable) providing they meet the 3 conditions. The first condition for new objectives under section 35 of the DEA is that the data sharing should either:

a) improve or target a public service provided to individuals or households
b) provide a benefit (whether financial or otherwise) to individuals or households

1. To what extent do you agree that the proposed new objective meets at least one of the parts (a) or (b) of the first condition?

The second condition is that the objective has as its purpose the improvement of the wellbeing of individuals or households. The reference to the wellbeing of individuals or households includes:

a. their physical and mental health and emotional wellbeing
b. the contribution made by them to society
c. their social and economic wellbeing

2. To what extent do you agree that the proposed new objective meets at least one of the parts (a), (b) or (c) of the second condition?

The third condition is that the data sharing should support the delivery, administration, monitoring or enforcement of a service provided by a particular public authority (or authorities).

3. To what extent do you agree that the proposed new objective meets the third condition?

Benefits

4. To what extent do you consider that the proposed new objective supports the delivery of the described benefits to the specified individuals and/or households? Please see section ‘what is the likely impact of the new objective’ and ‘benefits of access to the passported provisions’ for a summary of benefits to inform your answer.

Information to be shared

5. Do you think any additional information should be included in the information sharing activity that would improve the targeting and delivery of passported benefits? Please see section ‘what information will be shared’ for a list of information items in scope of the proposed objective to inform your answer.

Passported benefits in scope of the proposal

6. Do you think additional education related passported benefits should be considered as part of this objective? Please see paragraph 13 for a list of benefits in scope of this proposed objective to inform your answer.

Bodies involved in the proposed information sharing

7. Do you agree that the following public authorities should become a specified person eligible to share data for public service delivery objectives (the proposed public authorities below will be listed in schedule 4)?

a) a Proprietor of an Academy school, within the meaning of section 1A of the Academies Act 2010;
b) a Proprietor of an alternate provision Academy, within the meaning of section 1C of that Act;
c) a Governing body of a maintained school, within the meaning of the School Standards and Framework Act 1998 (see section 20(7) of that Act);
d) a Governing body a non-maintained special school, being a school that is approved under section 342 of the Education Act 1996;
e) a Management Committee of a pupil referral unit, within the meaning of section 19 of the Education Act 1996

8. Do you think that any other government departments or public authorities should be included to support the information sharing outlined in this proposal? Please see section ‘who will use the information sharing power’ for a list of proposed public authorities to inform your answer.

Equality Act 2010

The Equality Act 2010 requires public authorities to have due regard to the need to:

a) eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under this Act;
b) advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it;
c) foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

This helps the government and public authorities minimise the risk of any specific groups being disproportionately affected by any adverse impacts. Adverse impacts could include, but are not limited to:

a) to cause persons with protected characteristics to feel subject to discrimination, harassment, victimisation;
b) to result in inequality of opportunity between persons who share a protected characteristic and those who do not;
c) to have a negative impact on relations between persons who share a protected characteristic and those who do not

9. Do you think the proposed sharing of information for the passported benefits objective will have an impact on people who share any of the protected characteristics under the Equality Act 2010? (Protected characteristics include age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation)

Part 2: the amendment to the fuel poverty power

53. This part of the consultation paper sets out a proposal to amend section 36 of the DEA, which provides information sharing powers to support eligible individuals and households living in fuel poverty. The proposed amendments would extend the scope of these powers to allow for broader information sharing, which will allow the government to share information with energy suppliers to deliver a wider range of support schemes for energy consumers.

54. Chapter 1 of Part 5 of the DEA provides a legal framework to permit information sharing between specified government departments and gas and electricity suppliers, to ensure financial support to individuals and households facing fuel poverty. This framework is underpinned by legislative provisions: section 35 and the Digital Government (Disclosure of Information) Regulations 2018 (see paragraph 1(c) of the schedule to these regulations) enables information sharing between government departments to identify individuals and households in fuel poverty; section 36 provides a legal gateway for government departments to share eligibility information with energy companies; and section 37 allows energy suppliers to share relevant customer data with government departments to deliver support.

55. In 2024 to 2025, information sharing between DWP, the Department for Energy Security and Net Zero (DESNZ) and energy suppliers resulted in the delivery of a £150 reduction in energy costs to 3.22 million households across Great Britain, totalling £483 million. This information sharing enabled by the fuel poverty powers resulted in 96% (3.1 million) of individuals and households automatically receiving the £150 reduction in their energy bills.^{[footnote 14]}

56. At present, DWP and DESNZ identify eligible households for financial support, assess home energy efficiency and use section 36 of the DEA to confirm eligibility with relevant gas and electricity suppliers. Gas and electricity suppliers then administer relevant support to those eligible parties.

57. However, section 36 only permits data sharing for specific schemes named within the legislation. This restriction prevents information from being shared to support any energy support initiatives not included within those provisions, meaning such schemes fall outside the remit.

The proposal – amending section 36 of the Digital Economy Act 2017

58. To widen the information sharing powers in section 36, the government proposes making regulations under section 36(5)(c) of the DEA to add references to the Domestic Gas and Electricity (Tariff Cap) Act 2018, Electricity Act 1989 and Gas Act 1986 to section 36(3).

59. This change would establish the necessary information sharing gateway required to deliver an energy Debt Relief Scheme to assist domestic customers who are in debt to their gas or electricity supplier in respect of gas or electricity supply.

60. The affirmative resolution procedure applies for regulations under section 36(5) of the DEA, which means that draft regulations will need to be approved by both Houses of Parliament before they can be made.

Ofgem Debt Relief Scheme

61. One example of a scheme that falls outside the scope of the fuel poverty objective is Ofgem’s proposed Debt Relief Scheme.

62. According to Ofgem’s policy consultation, Resetting the energy debt landscape, since the start of the energy crisis (Q2 2022) there has been a significant increase in the level of debt and arrears in the energy sector. In this context, debt is monies owed and arrears mean where there is no payment plan in place to repay the debt. Overall, debt and arrears have both steadily increased since the energy crisis. Ofgem’s consultation reports that the combined number of domestic accounts in debt and arrears has broadly stabilised over the last year, indicating that the ongoing growth in total debt and arrears is being driven by consumers already struggling with their bills.^{[footnote 15]}

63. To support affected individuals and households, Ofgem has proposed an energy Debt Relief Scheme to help eligible domestic customers with energy debt incurred during the energy crisis. The proposed scheme would aim to clear approximately £500 million and £1 billion of outstanding energy debt. It is expected to deliver several benefits:

a) provide support to energy customers to reduce or eliminate energy debt accumulated during the energy crisis
b) act as a reset for the domestic retail energy market by addressing record levels of consumer debt and arrears
c) contribute to a fairer and more equitable energy market as reduced levels of debt across the energy sector could decrease future cost cap levels
d) encourage better energy debt management practices over the long term
e) increase the number of customers actively engaging with energy companies
f) promote the development of long-term debt repayment plans
g) form part of a broader package to reform the approach to energy debt^{[footnote 16]}

64. Ofgem is in the process of designing the funding model for the proposed energy Debt Relief Scheme.

65. The government, whilst acknowledging existing support, recognises the need to further alleviate energy cost burdens on individuals and households and will support Ofgem in delivering the Debt Relief Scheme.

66. There is currently no legal gateway which facilitates information sharing between the government and the energy sector to provide this support, as the scheme is not listed in section 36 (3) of the DEA.

67. The government recognises that effective information sharing is essential for the successful delivery of the energy Debt Relief Scheme. It therefore seeks to broaden Section 36 to support expanded information sharing, and enable the scheme to provide targeted assistance to eligible individuals and households.

Benefits of information sharing

68. The amendment would enable targeted support to a wider range of households that currently fall outside the existing fuel poverty objective, particularly those burdened with significant debt accrued during the energy crisis.

69. With broadened information sharing powers, the government can deliver benefits, including:

a) supporting new initiatives to identify and assist energy consumers who had not previously received support under the current legislative framework
b) reducing administrative burdens: section 36 currently enables the automatic provision of the Warm Home Discount (WHD) scheme benefits to eligible individuals. Applying the same approach to the Debt Relief Scheme would allow associated support to be delivered automatically to eligible households, removing the need for additional paperwork and reducing administrative burdens on citizens

Proposed information sharing under the Debt Relief Scheme

70. Following the amendment to section 36 of the DEA, Ofgem would then proceed to revise the Gas Supply Licence and Electricity Supply Licence, therefore enabling information sharing between the government and energy suppliers, to assist in identifying eligible households in need of support to clear debt accumulated during the energy crisis.

71. For delivery, the proposed energy Debt Relief Scheme will use DWP means-tested benefits data, which will include personal information shared by DWP with energy suppliers. This will enable targeted support to reduce energy debt to eligible consumers across England, Wales and Scotland.

72. Additional data sharing between energy suppliers and DWP will enable energy consumers to be identified for the energy Debt Relief Scheme, where not already identified as part of data sharing for the WHD.

73. The application of the WHD varies across England, Wales and Scotland. In Scotland, the scheme applies to a broader group, with suppliers having flexibility to propose additional eligibility criteria. For the purposes of the energy Debt Relief Scheme, Ofgem believes the use of a means-tested benefit data set for all jurisdictions will avoid discrepancies in eligibility between England, Wales and Scotland, as currently exists under the WHD scheme.

Who will be impacted by the proposed changes to section 36?

74. The government and Ofgem expect that widespread benefits will be delivered to citizens across the UK from the delivery of the energy Debt Relief Scheme. It will reduce the debt level accrued by individuals and households during the energy crisis. High debt and arrears harm both consumers and the market. They cause significant distress for those unable to repay and, as debt costs are shared, lead to higher prices for all. Unsustainable debt levels also threaten market stability.

Do the proposed changes to section 36 apply across the United Kingdom?

75. Section 36 of the DEA extends to England, Wales and Scotland. It does not extend to Northern Ireland. The energy Debt Relief Scheme described in this consultation will apply to England, Wales and Scotland only as Ofgem is the energy regulator for Great Britain. A separate, independent regulator exists in Northern Ireland to regulate its electricity and gas industries.

76. The amendments to section 36 of the DEA will extend to England, Wales and Scotland.

Will information sharing comply with the relevant data protection requirements?

77. Yes, the information sharing will comply with the relevant data protection requirements. Section 40(8) of the DEA confirms that section 36 does not authorise disclosure that contravenes the data protection legislation. The purpose of the underpinning Code of Practice^{[footnote 17]} is to provide a set of principles and guidance for the use and disclosure of information under DEA powers. The Code of Practice also refers to other requirements when sharing information, including data protection legislation. Data protection law requires, among other things, that personal data must be processed lawfully, fairly, in a transparent manner and only for specified and legitimate purposes.

78. Section 36 of the DEA may provide a basis for processing (including sharing) of personal data pursuant to Article 6(1)(e) of the UK GDPR – processing necessary for the performance of a task carried out in the public interest or in the exercise of official authority.

Will you prepare a data protection impact assessment?

79. The Code of Practice sets out that public authorities involved in the data share must carry out a data protection impact assessment before sharing data. The data protection impact assessment will assess the potential benefits of the information sharing agreement against the risk of, or potential for, negative effects – such as an erosion of personal privacy.

Will the information sharing comply with current best practice?

80. Yes, the proposed information sharing complies with current government practice, including the Data Ethics Framework, the Government Data Quality Framework, initiatives for data standardisation work being taken forward by the Data Standards Authority and the Scottish Government Digital Strategy.The information sharing will also support Mission 6 (Data and Collaboration of the ‘Welsh Government’s Digital Strategy for Wales’^{[footnote 18]} and comply with the Welsh Accord for the Sharing of Personal Information (WASPI).^{[footnote 19]} All parties to the information share will periodically review the arrangements to ensure that compliance is consistent throughout implementation.

Impact assessment

81. To ensure that all intended and unintended effects of the amendments have been considered and mitigations established, the following impact assessments have been carried out:

• impact assessment undertaken by Ofgem to consider the impacts of a Debt Relief Scheme to address energy debt accrued during the energy crisis
  
• Ofgem has carried out a Public Sector Equality Duty assessment

82. This proposed amendment has no direct impact on UK businesses. Therefore additional impact assessments have not been carried out.

Consultation questions for the fuel poverty power amendment

Energy Debt Relief Scheme

1. To what extent do you consider that the proposed amendment will support the delivery of an energy Debt Relief Scheme for individuals or households? Please see section ‘the proposal – amending section 36 of the Digital Economy Act 2017’, ‘Ofgem Debt Relief Scheme’ and ‘benefits of information sharing’ to inform your answer.

2. Do you believe that the proposed amendment will alleviate financial hardship for individuals that have energy bill debt? Please see section ‘the proposal – amending section 36 of the Digital Economy Act 2017’, ‘Ofgem Debt Relief Scheme’ and ‘benefits of information sharing’ to inform your answer.

Equality Act 2010

The Equality Act 2010 requires public authorities to have due regard to the need to:

a) eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under this Act;
b) advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it;
c) foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

This helps the government and public authorities minimise the risk of any specific groups being disproportionately affected by any adverse impacts. Adverse impacts could include, but are not limited to:

a) to cause persons with protected characteristics to feel subject to discrimination, harassment, victimisation;
b) to result in inequality of opportunity between persons who share a protected characteristic and those who do not;
c) to have a negative impact on relations between persons who share a protected characteristic and those who do not

3. Do you think the proposed amendment for the energy Debt Relief Scheme will have an impact on people who share any of the protected characteristics under the Equality Act 2010? (Protected characteristics include age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation).

Consultation requirements

83. Section 40(4) of the DEA requires the Secretary of State to consult with the devolved governments, Information Commissioner and the HMRC Commissioners on any proposed legislative changes. The Secretary of State must also consult such other persons as he thinks appropriate.

84. We are undertaking a public consultation on these proposed amendments so we can be confident that all persons who might reasonably be considered appropriate to be consulted, have been consulted. This will ensure as wide a range of views as possible is considered and factored into the regulations before they are presented to Parliament for approval.

Next steps

85. Following the closure of this consultation, all responses will be carefully considered and analysed. A government response will be published within 12 weeks on this consultation page.

86. Should views support the proposal set out in this consultation paper, the government will proceed with making the necessary legislative changes to the DEA via statutory instrument.

Provisional timetable for the parliamentary process

87. A provisional timetable for amending the legislation is set out below. Please be aware this may be subject to change as we will progress through the parliamentary process. A final timetable will be confirmed following the consultation period and published on GOV.UK as part of the government response to this consultation.

88. Thank you for participating in this consultation exercise.

Activity	When
Draft laying date for the Statutory Instrument	January 2026
Enactment of powers	Spring 2026

1. Code of Practice for public authorities disclosing information under Chapters 1, 3 and 4 (Public Service Delivery, Debt and Fraud) of Part 5 of the Digital Economy Act 2017 ↩

2. https://www.legislation.gov.uk/uksi/2018/912/introduction/made as amended by the Digital Government (Disclosure of Information) (Amendment) Regulations 2022 ↩

3. The Digital Government (Disclosure of Information) (Identity Verification Services) Regulations 2024 ↩

4. Scottish Attainment Challenge is the umbrella term for Scottish programmes with the goal of reducing the poverty-related attainment gap. This objective is intended to provide a legal gateway for the Scottish Attainment Challenge and future similar programmes which share this goal. ↩

5. https://www.gov.uk/government/groups/digital-economy-act-public-service-delivery-review-board ↩

6. ICO Data Sharing Code of Practice ↩

7. Plan for Change ↩

8. Blueprint for modern Digital Government ↩

9. Vision for eradicating child poverty in Scotland ↩

10. Digital Strategy for Wales ↩

11. Digital Economy Act 2017 part 5: Codes of Practice ↩

12. Digital Strategy for Wales ↩

13. Welsh Accord for the Sharing of Personal Information (WASPI) ↩

14. Warm Home Discount statistics, 2024 to 2025 ↩

15. https://www.ofgem.gov.uk/consultation/resetting-energy-debt-landscape-case-debt-relief-scheme ↩

16. Resetting the energy debt landscape the case for a debt relief scheme ↩

17. Digital Economy Act 2017 part 5: Codes of Practice ↩

18. Digital Strategy for Wales ↩

19. Welsh Accord for the Sharing of Personal Information (WASPI) ↩