Question to the Department for Business and Trade:

To ask His Majesty's Government what steps they are taking to develop a regulatory framework to ensure that workplace use of artificial intelligence tools complies with UK employment and data protection law.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Information Commissioner’s Office has committed to developing a statutory code of practice on artificial intelligence, so organisations have certainty on how to deploy AI in ways that uphold people’s rights and build public confidence.

Artificial Intelligence is a general-purpose technology with many applications, which is why the government believes most AI systems should be regulated at the point of use by our existing regulators.

The Plan to Make Work Pay set out the Government’s commitment to work with workers, trade unions, employers and experts to ensure rights and protections keep pace with technological change.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of international policy cooperation on regulating artificial intelligence in financial services; and whether they plan to develop further UK policy in this area.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.

International collaboration is vital to ensure that we can collectively unlock AI’s potential. The UK remains committed to working internationally, including through fora such as the Financial Stability Board (FSB), to support the safe adoption of AI in the financial sector.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to review tax and residency rules, following reports of UK technology founders relocating overseas.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The UK uses the Statutory Residence Test (SRT) to determine UK residency for tax purposes. UK tax residents normally pay tax on their worldwide income and gains, while non-UK residents only pay UK tax on their UK income and gains.

The Government’s priority is improving the UK’s competitiveness internationally and securing economic growth.

The Government is backing entrepreneurs and fostering a pro-business environment by ensuring the tax system is designed to support innovation and economic growth. That is why we have announced a package of measures to back entrepreneurship at Autumn Budget 2025.

The Government keeps tax and residency rules under review to ensure they remain competitive and responsive to the needs of innovative sectors, including technology.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to improve data quality standards in financial services to ensure the reliable use of artificial intelligence in regulatory compliance.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.

As set out in the Bank of England and Financial Conduct Authority’s October 2022 discussion paper on artificial intelligence and machine learning, a range of existing legal requirements and guidance are relevant to the UK financial sector’s use of AI across the AI lifecycle. This includes in relation to data quality.

The government’s response to the AI Opportunities Action Plan also sets out the steps we will take to responsibly unlock data assets in the public and private sector.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the risk to consumers using AI chatbots for financial advice, following the consumer study findings from Which? stating such tools provided inaccurate financial advice.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The government recognises that many people lack the support they need to make financial decisions and are increasingly turning to technologies such as general purpose large language models for help.

Together with the Financial Conduct Authority (FCA), the government wants to ensure that people can receive meaningful support from firms they know and trust, such as their bank or pension provider. That is why we are enabling trusted firms to do more to proactively support their customers.

To deliver this, the government is introducing a new regime for targeted support, which will allow firms to engage directly with customers and suggest products or courses of action for their financial situation. As announced by the Chancellor at Mansion House, targeted support will be available online in time for the next financial year.

Alongside this, the UK’s data protection framework applies to the processing of personal data across the design, development and deployment of AI tools. Organisations are required to ensure that personal data is processed fairly, lawfully, transparently, and securely. People also have a number of rights over how their personal data is used, such as the right of access, rectification, or erasure.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of reports that UK inflation slowed to 3.6 per cent in October, and what the implications are for policies aimed at reducing cost-of-living pressures for households and businesses.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The OBR expects inflation to have peaked in Q3 2025, and that it will fall progressively to the Bank of England’s 2% target in Q1 2027. The Bank of England has overall responsibility for controlling inflation and beyond this, the government is targeting inflation at its source, by bearing down on everyday expenses such as energy bills, transport and childcare costs to ease cost of living pressures.

Taken together the OBR’s forecast shows government policy will reduce CPI inflation by 0.4 percentage points in 2026/27. This is the biggest near-term reduction in inflation due to government policy ever forecast by the OBR at a single fiscal event, outside of a crisis.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to encourage UK-based fintech founders to retain and expand their companies in the UK, including through targeted tax and regulatory incentives.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Financial Services Growth and Competitiveness Strategy identified Fintech as a priority growth opportunity, and set out the government’s ambition for the UK to remain a leading jurisdiction to start, scale and list a Fintech business.

The Strategy set out a series of measures to shape a regulatory environment for financial services that is proportionate, predictable and internationally competitive. These included working with the regulators to make it quicker and easier for new firms to achieve regulatory authorisation, as well as the launch of a joint FCA-PRA Scale-Up Unit, to enhance engagement with fast-growing, innovative regulated firms.

The Government published its Corporate Tax Roadmap at Budget 2024, which set out a number of commitments for this Parliament. Central to this is the commitment to cap Corporation Tax at 25 percent for the duration of this parliament, confirming the UK as the jurisdiction with the lowest rate in the G7. This is supplemented by some of the most generous business investment tax reliefs and allowances in the OECD - includes full expensing, R&D tax reliefs, and the Patent Box regime.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the confidence of financial technology company founders in the UK economy.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The UK has a long history as a powerhouse of financial services innovation, which has made the UK one of the most attractive locations worldwide to establish Fintechs. The Financial Services Growth and Competitiveness Strategy set out a comprehensive package of reforms to maintain the UK’s global leadership in Fintech.

The Government is committed to making the UK the best place to start and grow a business, recognising the importance of a competitive investment environment for economic growth. The UK is already the best place in Europe to establish a business, and, to make it even easier for entrepreneurs to scale and stay in the UK, the most recent Budget set out a series of measures which will help unlock billions in investment, expand tax reliefs, and make government a better customer for innovative businesses.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the impact of artificial intelligence tools on employment levels, in the light of the finding in the Chartered Institute for Personnel and Development Labour Market Outlook report, published on 10 November, that 17 percent of UK employers expect to reduce their workforce due to AI tools in the coming year.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

We want to ensure people have access to good, meaningful work. AI has the potential to transform the labour market and Government is working to ensure the UK is well prepared, so that AI drives growth and opportunities for workers, businesses, and communities.

We are closely monitoring data on the impact of AI on the workforce, such as the CIPD report, and actively preparing for a range of scenarios. We are supporting workforce readiness for AI through multiple initiatives. Including our commitment to give 7.5 million workers essential AI skills by 2030.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to develop accessibility standards for AI-enabled assistive communication technologies used by people with disabilities.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Public Sector Bodies Accessibility Regulations require most public sector organisations to ensure their services, websites, intranets, extranets, published documents, and apps are accessible to disabled people by meeting the requirements of the Web Content Accessibility Guidelines v2.2 to level AA and by publishing a prescribed format accessibility statement. This includes requirements to work with assistive technologies. The regulations apply regardless of if the technology is AI enabled or not. The Government Service Standard requires Departments to make sure everyone can use the service. The standard doesn’t apply to the wider public sector.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of reports that children are using artificial intelligence chatbots for mental health advice, in particular with regard to online safety and child protection.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

This Government is committed to improving NHS mental health services to ensure that children and young people receive the right support at the right time for their mental health.

The Online Safety Act requires all in-scope services, including AI chatbots, to proactively remove illegal suicide and self-harm content. Services likely to be accessed by children must take steps to prevent children from accessing suicide, self-harm, or eating disorder content.

DHSC’s 10 Year Plan has set out an ambitious reform agenda to transform mental health services to improve access and treatment and promote good mental health and wellbeing for the nation.

Question to the Department for Business and Trade:

To ask His Majesty's Government whether they plan to review the regulatory requirements applying to AI-enabled toys for children.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

Government has committed to reviewing product regulations including the Toys (Safety) Regulations. These reviews will examine whether changes are needed to detailed safety requirements to reflect modern challenges, such as the use of AI in toys.

Following an appropriate consultation as required under The Product Regulation and Metrology Act 2025, Government will decide whether to implement any changes to the Toy (Safety) Regulations to ensure they address modern safety issues and technological developments, harness opportunities to create economic growth, and continue to protect people and places from product-related harm.

Question to the Department of Health and Social Care:

To ask His Majesty's Government what steps they are taking to assess the clinical safety and cost effectiveness of AI mental health tools funded and used by the NHS.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

The Government is committed to ensuring that artificial intelligence (AI) tools used in mental health care within the National Health Service are clinically safe and deliver value for money. We are working with regulators such as the Medicines and Healthcare products Regulatory Agency, the National Institute for Health and Care Excellence, and other partners to ensure all AI mental health tools deployed in the NHS meet the requirements of the United Kingdom’s regulatory system, to ensure these technologies are safe for use and cost-effective.

Additionally, NHS England applies the Digital Technology Assessment Criteria to evaluate the safety, security, and usability of digital health tools. Independent clinical evaluations and pilot studies are also undertaken prior to wider implementation of these technologies.

Through the AI in Health and Care Award, which ran from 2020 to 2024, the NHS AI Lab funded the testing and evaluation of two mental health technologies, Limbic Access and Wysa. As set out in the 10-Year Health Plan, the NHS is working towards rolling out digital mental health tools. As part of this process, each technology is assessed not only for clinical safety but also for cost-effectiveness, ensuring that these innovations deliver measurable benefits and represent good value for the NHS and taxpayers.

Question to the Department of Health and Social Care:

To ask His Majesty's Government whether they have had discussions with commercial users about pricing arrangements for access to datasets through the Health Data Research Service.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

To ensure an appropriate commercial model is developed for the Health Data Research Service (HDRS), discovery work has been undertaken to gain insight into existing commercial models that might be applicable for the HDRS. This discovery work included engagement with 19 commercial organisations representing users of health data, allowing the development of a robust, up to date, and United Kingdom-wide evidence base. Decisions regarding what commercial model and pricing arrangement is used will be within the remit of the incoming HDRS senior leadership team.

Question to the Department of Health and Social Care:

To ask His Majesty's Government what assessment they have made of expanding community-based diagnostic and treatment services to reduce pressure on hospital capacity.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

The 10-Year Health Plan sets out a transformed vision for elective care by 2035, where the majority of interactions no longer take place in a hospital building, instead happening virtually or via neighbourhood services. Planned care will be more efficient, timely, and effective, and will put control in the hands of patients.

The Elective Reform Plan sets out the productivity and modernisation efforts needed to reach the 92% standard by March 2029. This includes expanding existing community diagnostic centres (CDCs), and building up to five new ones in 2025/26, as well as extending opening hours to 12 hours per day, seven days a week. We will also expand the number of hubs over the next three years. Further details and allocations will be set out in due course.

CDCs are key to delivering on the Government’s ambition to move more planned care from hospitals to the community, reducing pressure on hospitals and delivering more convenient care close to home. Under the Government, CDCs have delivered over 9.4 million tests and scans since July 2024, supporting patients to access vital tests, scans, and checks around their busy working lives.

Dedicated and protected surgical hubs transform the way the National Health Service provides elective care by focusing on providing high volume low complexity surgery, as recommended by the Royal College of Surgeons of England. By separating elective services from urgent and emergency care, hubs improve patient outcomes and reduce hospital pressures. There are currently 123 operational hubs across England, 22 of which have opened since the Government took office.

The 2025 Spending Review confirmed over £6 billion of additional capital investment over five years across new diagnostic, elective, and urgent care capacity. Further details and allocations will be set out in due course.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of rising input costs, labour costs and taxes on small and medium-sized enterprises in the UK.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government set out its overall approach for supporting SMEs in the Small Business Strategy published in July 2025 and built on this with targeted reforms to support small businesses at the Budget in November 2025.

Through our changes to Employer National Insurance Contributions, the threshold at which business start paying Employer NICs has doubled to £10,500.

We are providing support for small businesses in a number of other areas. We are introducing the toughest late payment laws in the G7. We are changing the rules to fully fund SME apprenticeships training costs for eligible people under the age of 25, providing the skills that both workers and businesses need. Through the new Business Growth Service, small businesses will be able to access support with skills training, recruitment, or accessing Start Up Loans and Export Finance.

Question to the Department for Work and Pensions:

To ask His Majesty's Government what estimate they have made of the number of pensioners whose incomes will be below the minimum retirement living standard in 2040.

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

This Government is committed to delivering greater security in retirement for future retirees. The Pensions Scheme Bill will put in place bigger, better pension schemes that have the scale to deliver better returns, a strong Value for Money framework to ensure schemes are delivering these returns, and new Guided Retirements to support people to turn their savings into an income in retirement.

The Government has also revived the Pensions Commission, which is reviewing our pensions system as a whole and the retirement outcomes it delivers, with a focus on adequacy, fairness and sustainability.

DWP’s latest estimate, in July 2025, found around 13% of current working-age individuals were on track to have an income level in retirement below the Pensions UK Minimum Retirement Living Standard.

For those becoming a pensioner in the 2040s, it is estimated that 15% will fall below the Pensions UK Minimum Standard, the equivalent of around 1 million individuals.

For further detail please see:

Analysis of Future Pension Incomes 2025 - GOV.UK

analysis_of_future_pensions_incomes_data.xlsx – See table 4

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they will take to support job creation and infrastructure development in the AI Growth Zone in South Wales.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Government is establishing AI Growth Zones (AIGZs) to deliver the infrastructure needed for the UK to develop and deploy advanced AI at scale.

Following the announcement of the fourth AI Growth Zone in South Wales, we are working with national and regional government, businesses and local skills providers to address key barriers to investment in the area and accelerate benefits for communities across South Wales. Our AI Growth Zone policy package unlocks £5 million for each site to invest in local benefits and capitalise on the AI economy. This additional funding can support initiatives such as expanding data centre-focused skills pathways, creating more high-skilled, high-paying jobs and strengthening the local research environment.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of legacy IT infrastructure on the ability of UK banks to adopt new financial technology and AI systems.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government recognises that legacy IT infrastructure can present challenges for UK banks as they seek to adopt new financial technology and Artificial Intelligence (AI) systems.

However, the Government believes that safe adoption of AI by the financial services sector is a major strategic opportunity, with potential to power growth across the UK. The Government and regulators are taking a ‘pro-innovation’ approach to AI regulation across the economy and in financial services.

The Government is focused on ensuring that the UK’s policy and regulatory environment is fit for purpose to seize the opportunity of our dual strengths in financial services and AI, and positioning the UK as a world leader in the safe adoption of AI in financial services.

The Financial Services Growth and Competitiveness Strategy is an important part of that effort, with the appointment of an AI Champion intended to act as a catalyst for AI adoption and innovation in financial services.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the impact of employers adopting AI systems on the labour market, and what steps they are taking to ensure workers are equipped with the skills required by the labour market.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Get Britain Working White Paper sets out how we will address key labour market challenges and spread opportunity in order to fix the foundations of our economy so we can make the most of the opportunities AI presents. The Government is supporting workforce readiness for AI through a range of initiatives.

The new AI Skills Hub, developed by Innovate UK and PwC, provides streamlined access to digital training. This will support government priorities through tackling critical skills gaps and improving workforce readiness. We are also partnering with 11 major companies to train 7.5 million UK workers in essential AI skills by 2030 and expanding AI education in universities, by launching Pioneer Fellowships for cross-disciplinary upskilling.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to encourage professional services firms to adopt artificial intelligence productivity tools.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Government is committed to driving AI adoption across the economy, including professional services. Through the AI Opportunities Action Plan, we are tackling barriers such as lack of awareness, trust, and technical capability. This includes expanding the BridgeAI programme (which supports organisation adopt AI with funding and hands-on support), announcing an AI champion for professional business services, and training 7.5 million workers across the economy in essential AI skills by 2030. We are also investing £11 million to grow the UK’s AI assurance market, ensuring firms can adopt tools confidently and responsibly. These measures will help businesses harness AI to boost productivity and maintain the UK’s global competitiveness.

Found: 2025 | Written questions | Answered | House of Commons | 72492 Water Supply Asked by: Lord Taylor of Warwick