As Sandre says this really does depend on purpose.
Schedule 3 Condition 8 cannot be used in the general way which the OP seemed to suggest because it does not in itself override confidentiality, so even if the condition is satisfied, the processing will often still be unlawful under principle 1 for the confidentiality breach.
Condition 8 has two principle uses.
1. In the direct care situation, as Sandre suggests it avoids the strict need for 'explicit' consent for every use of sensitive PD. In terms of the law of confidentiality consent can be implied (within limits depending on fair processing and the Caldicott principles) to share information within the care 'team' but in DP terms the ability to 'imply' consent is more limited by the definition of freely given, informed and communicated and the need for 'explicitness'.
2. In an emergency situation where a patient is incapable of consenting, public interest can 'override' the duty of confidentiality where it is reasonable to assume consent would otherwise have been given
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