Changes to the data protection fee

Following a government consultation on the Data Protection Fee regime, which concluded in October 2024, the Information Commissioner’s Office (ICO) has announced an increase in the data protection fee, effective from 17 February 2025.

Understanding the New Fee Structure

The data protection fee is tiered based on an organisation’s size and turnover:

  • Tier 1: Organisations with a maximum turnover of £632,000 or no more than 10 staff members.
  • Tier 2: Organisations not meeting Tier 1 criteria but with a maximum turnover of £36 million or no more than 250 staff members.
  • Tier 3: Organisations exceeding the criteria for Tier 2.

The revised fees are:

Tier Previous Fee New Fee
1 £40 £52
2 £60 £78
3 £2,900 £3,763

Implications for Organisations

All organisations that process personal data are legally required to pay this fee unless exempt. Non-compliance can result in fines and reputational harm. It’s advisable to use the ICO’s self-assessment tool to determine the correct fee tier.

Recommendations for Clients

  1. Assess Applicability: Determine if the data protection fee applies to your organisation.
  2. Identify the Correct Tier: Use the ICO’s self-assessment tool to ascertain your fee tier.
  3. Timely Payment: Ensure the fee is paid promptly to avoid penalties.
  4. Consider Direct Debit: Setting up a direct debit can simplify future payments and may offer a £5 reduction in the fee.