Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ensure that UK financial services firms have sufficient cyber security and engineering capacity to address vulnerabilities identified by increasingly capable artificial intelligence systems.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Government recognises that increasingly capable artificial intelligence systems present both opportunities and risks for the financial sector.
As noted in Julyâs Financial Stability Report, frontier AI may materially increase the flow of vulnerabilities requiring assessment and remediation by firms, which could itself become a source of systemic risk, even if cyber-attacks were not to increase. A materially higher volume of identified vulnerabilities would require firms and suppliers to patch and validate changes at much greater speed and frequency, increasing the risk of errors, outages, and disruption across interconnected systems.
In May 2026 the National Cyber Security Centre issued guidance to firms encouraging them to prepare for a wave of software updates that will need to be applied across the technology stack to address the disclosure of new vulnerabilities.
The UK financial authorities have made clear that firms should maintain effective protective, detective, threat containment and cyber response capabilities, and should be able to identify, assess and remediate vulnerabilities more quickly and at greater scale as AI capabilities develop. Firms are responsible for ensuring they have the skills, expertise and resources necessary to manage risks appropriately, including cyber security and engineering capacity.
The Government supports this through technical advice and guidance from the NCSC and ongoing engagement with industry and regulators, including through the Cross Market Operational Resilience Group (CMORG).
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government what steps they are taking to ensure that local authorities using artificial intelligence to assess adult social care needs retain appropriate human oversight and safeguards for vulnerable people.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The National Commission into the Regulation of AI in Healthcare was established to bring together independent expertise and evidence to inform the Governmentâs development of a 'future readyâ regulatory framework for the use of artificial intelligence (AI) in healthcare.
Through its work, The National Commission has recommended that the Medicines and Healthcare products Regulatory Agency (MHRA) move to a more proportionate, lifecycle-based approach to regulation of AI products. This includes ensuring regulatory decisions are based on the risks and benefits of the specific device and introducing more ongoing, responsive post-market surveillance expectations and approaches, which will enable regulators to better detect and understand changes in safety and performance across the product lifecycle. The Commission also made a series of recommendations to further support clinical safety and governance, including requiring manufacturers to define the operational conditions needed for safe deployment of AI technologies, supporting providers to demonstrate the âAI readinessâ needed for safe deployment, and coordinated training of professionals to enable safe use. More information can be found in The National Commissionâs recommendations report, a copy of which is attached. The Government will formally respond to those recommendations in the normal way in due course.
If an AI system providing real-time guidance during surgery meets the definition of a medical device, then the device would be required to comply with existing medical device regulations, including for safety and performance.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government what steps they are taking to ensure that artificial intelligence tools used in healthcare are subject to appropriate approval and continuous monitoring of safety and performance after deployment.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The National Commission into the Regulation of AI in Healthcare was established to bring together independent expertise and evidence to inform the Governmentâs development of a 'future readyâ regulatory framework for the use of artificial intelligence (AI) in healthcare.
Through its work, The National Commission has recommended that the Medicines and Healthcare products Regulatory Agency (MHRA) move to a more proportionate, lifecycle-based approach to regulation of AI products. This includes ensuring regulatory decisions are based on the risks and benefits of the specific device and introducing more ongoing, responsive post-market surveillance expectations and approaches, which will enable regulators to better detect and understand changes in safety and performance across the product lifecycle. The Commission also made a series of recommendations to further support clinical safety and governance, including requiring manufacturers to define the operational conditions needed for safe deployment of AI technologies, supporting providers to demonstrate the âAI readinessâ needed for safe deployment, and coordinated training of professionals to enable safe use. More information can be found in The National Commissionâs recommendations report, a copy of which is attached. The Government will formally respond to those recommendations in the normal way in due course.
If an AI system providing real-time guidance during surgery meets the definition of a medical device, then the device would be required to comply with existing medical device regulations, including for safety and performance.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government what steps they are taking to ensure that artificial intelligence systems used to provide real-time guidance during surgery are subject to appropriate clinical safety and governance standards.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The National Commission into the Regulation of AI in Healthcare was established to bring together independent expertise and evidence to inform the Governmentâs development of a 'future readyâ regulatory framework for the use of artificial intelligence (AI) in healthcare.
Through its work, The National Commission has recommended that the Medicines and Healthcare products Regulatory Agency (MHRA) move to a more proportionate, lifecycle-based approach to regulation of AI products. This includes ensuring regulatory decisions are based on the risks and benefits of the specific device and introducing more ongoing, responsive post-market surveillance expectations and approaches, which will enable regulators to better detect and understand changes in safety and performance across the product lifecycle. The Commission also made a series of recommendations to further support clinical safety and governance, including requiring manufacturers to define the operational conditions needed for safe deployment of AI technologies, supporting providers to demonstrate the âAI readinessâ needed for safe deployment, and coordinated training of professionals to enable safe use. More information can be found in The National Commissionâs recommendations report, a copy of which is attached. The Government will formally respond to those recommendations in the normal way in due course.
If an AI system providing real-time guidance during surgery meets the definition of a medical device, then the device would be required to comply with existing medical device regulations, including for safety and performance.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Home Office:
To ask His Majesty's Government what steps they are taking to ensure that the use of AI-enabled facial recognition CCTV by local authorities is subject to appropriate safeguards for privacy, data protection, and transparency.
Answered by Lord Hanson of Flint - Minister of State (Home Office)
The Government recognises the importance of ensuring that facial recognition technology is used with appropriate safeguards. There is an established legal framework governing the use of the technology, including compliance with data protection, equality and human rights legislation.
Local authorities considering the use of the technology must ensure that its use is lawful, necessary and proportionate, and complies with applicable legal requirements.
Local authorities must also have regard to the Surveillance Camera Code of Practice, which sets out guiding principles for the appropriate, transparent and effective use of surveillance camera systems. The Code, which is overseen by the Biometrics and Surveillance Camera Commissioner, promotes accountability, transparency, effective governance and public confidence.
More broadly, the Government has consulted on a new framework for law enforcement use of biometrics, facial recognition and similar technologies. The Police Reform Bill will include clearer rules and safeguards, and a single expert body to provide independent advice and oversight.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to address barriers faced by UK crypto asset firms in accessing banking services to support growth and competitiveness in the digital assets sector.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Government is aware that cryptoasset firms are facing challenges associated with access to banking services, and is engaged with the sector on these matters.
Whilst the Government recognises that decisions around the provision of banking services are largely commercial in nature, we also expect businesses to be treated fairly. That is why the Government has taken action in this space, including legislating to enhance relevant protections in cases where a business has their bank account terminated by their provider.
The Government has also legislated to create a financial services regulatory regime for cryptoassets in the UK. Under this regime, firms will need to be licensed by the Financial Conduct Authority to provide relevant cryptoasset services, and the Government would not expect such licensed firms to be subject to restrictions by banking services providers simply because of the sector they belong to.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to strengthen the resilience of the UK financial system to cyberattacks enabled by increasingly capable artificial intelligence systems.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Government recognises that increasingly capable artificial intelligence systems present both opportunities and risks for the financial sector. As noted in Julyâs Financial Stability Report, rapid progress in frontier AI capabilities presents a significant increase in the risks to financial stability from cyber and operational vulnerabilities.
HM Treasury works closely with the financial regulators, the National Cyber Security Centre and industry to strengthen the resilience of the UK financial system in the face of evolving cyber threats, including those enabled by AI. The authorities continue to work with firms through established resilience frameworks and industry bodies, including the Cross Market Operational Resilience Group (CMORG), which issued guidance for firms in June to help them assess their current capabilities and accelerate their response.
Frontier AI also has the potential to strengthen the financial sectorâs cyber defences. To help firms share best practices on this front, the Bank of England has established a forum for systemically important UK financial institutions and Financial Market Infrastructure to share their experiences on the use of frontier AI for cyber defence.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ensure that consumers using artificial intelligence for financial planning receive appropriate safeguards against inaccurate or unsuitable advice.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Government wants consumers to be able to access high-quality support to make informed decisions about their finances and is committed to the safe adoption of AI in financial services, including financial guidance and advice. We support a principles-based, outcomes-focused approach to AI regulation enabling firms to innovate while maintaining high standards of consumer protection.
We recognise that general-purpose AI technology has already changed the nature of financial advice and guidance.
On 6 July, the Financial Conduct Authority published the Mills Review, which recommended a rapid FCA review on this issue.
On 14 July, the Government published the Financial Services AI Championsâ Adoption Plan, which included a high-priority recommendation that the FCA should consider the impacts of financial guidance and advice-like outputs through general purpose large language models (LLMs).
The Government are engaging with the FCA to determine next steps. This is an important piece of work that complements the Governmentâs broader ambition to make the UK a global leader in AI, leveraging our dual strengths in financial services and AI to drive growth, productivity and better, safe outcomes for consumers.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government what steps they are taking to support the responsible use of artificial intelligence in the production of official statistics.
Answered by Baroness Twycross - Parliamentary Secretary (Cabinet Office)
The information requested falls under the remit of the UK Statistics Authority.
Please see the letter attached from the Permanent Secretary for the Office for National Statistics.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government what steps they are taking to strengthen the cyber resilience of companies providing technology and digital services to the NHS.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
As I set out in my answer of 3 July 2026 in response to the Noble Lordâs question HL8927, we have a dedicated workstream in the Cyber Improvement Programme that is focused on this particular risk, developing tools and processes to increase cyber assurance and resilience. In May 2025, we published the cyber security supply chain charter, designed to support suppliers and their customers in reducing the likelihood and impact of a cyber incident.
For ease of reference, HL8927 has been reproduced below:
In the past year we have invested ÂŁ37.6 million across health and social care, building on the ÂŁ338 million invested since 2017. Through our ambitious Cyber Improvement Programme, we are tackling the changing cyber risk head-on, expanding protection and services to better protect the health and care system.
The health and social care supply chain is large and complex. We have a dedicated workstream in the Cyber Improvement Programme that is focused on this particular risk, developing tools and processes to increase cyber assurance and resilience.
Published in May 2025, the cyber security supply chain charter is designed to support suppliers and their customers in reducing the likelihood and impact of a cyber incident. The eight statements contained within the charter are fundamental security measures that should be reasonably expected from suppliers to help secure their organisation.
In September 2024, the National Cyber Security Centreâs Cyber Assessment Framework was implemented into the Data Security and Protection Toolkit (DSPT) for large National Health Service organisations. This enables them to understand and manage their own cyber and information governance risks, while maintaining the high standards necessary to protect patients. Over 56,000 organisations completed a DSPT assessment for 2023/24. As of July 2024, 82% of NHS trusts, or 172 trusts, had met or exceeded the standard.
72% of adult social care providers are now compliant with the DSPT, and the Government funded Better Security, Better Care programme continues to support care providers to prioritise safety and security when handling the data of those drawing on care.
The Department for Science, Innovation and Technologyâs upcoming Cyber Security and Resilience Bill will help us address the evolving cyber threat to our supply chain. It will strengthen our defences and ensure that essential healthcare services are better protected.
Through the Cyber Operations division in NHS England, we are able to respond to the ever-changing threat landscape and monitor security threats to IT systems and networks. Cyber Operations provide a range of specialist services that help NHS organisations manage cyber risk, and these are delivered through a range of centrally funded products and services.
We work to ensure that patient data and information is stored in systems that are safe and secure. We do this by providing services, guidance, and support to health and care organisations.