Question to the Department for Work and Pensions:

To ask His Majesty's Government how has the proportion of AI expenditure within the Department for Work and Pension’s overall IT budget changed since 2018; what assessment they have made of the potential savings and efficiency gains that could be achieved through greater use of AI and modern IT systems; and what steps they are taking to build in-house expertise and identify new opportunities for AI deployment across departmental operations.

Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)

The Department for Work and Pensions (DWP) did not allocate direct funding for AI prior to 2023/2024. Direct investment began in 2023/24, representing around 0.4% of the IT budget. In 2024/25, this increased to approximately 2.5% and 2.2% in 2025/26. Whilst the current year (2025/26) shows a reduction in % terms, the £’s investment represents a similar value, demonstrating the Department’s drive to use AI within its digital transformation strategy.

DWP’s Strategy for 2030 sets the direction for how we will transform delivery of our services over the next few years. AI and modern IT systems will play an important role in that strategy.

We collaborate with stakeholders to identify key areas where AI can solve business challenges and add value, co-designing solutions with these stakeholders.

A secure version of Microsoft Copilot Chat is now available to all DWP colleagues. We are providing this capability to enable colleagues to safely explore how AI can contribute to their roles.

Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government whether participating employers in the Local Government Pension Scheme are permitted to hold separate notional investment strategies within their administering authority’s pension fund; and, if not, whether administering authorities have any discretion to apply differentiated investment approaches or notional asset allocations for individual employers as part of their Funding Strategy Statements or Investment Strategy Statements.

Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)

It is for administering authorities to set an investment strategy for their fund. Relevant legislation, regulations and guidance does not preclude a fund from setting a different strategy for different employers.