Capacity Market Units: Consultation on Location Changes
(1 day, 8 hours ago)
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The Minister for Energy (Michael Shanks)
I am tabling this statement to inform members of the publication of a consultation response relating to the capacity market titled “Government response to consultation on proposal regarding locational changes of capacity market units”. It sets out the Government’s intention to amend the rules that allows for notification of a change of address in the CM to prevent new build capacity market units and DSR CMUs from changing address between prequalification and delivery. This change will apply to all future CM agreements starting from prequalification 2026.
The Government recognise that the ability to change components is necessary for DSR CMUs. It is worth noting that only five change of address requests have been made by DSR units under the rule being changed through this consultation, and the rules will still have options for DSR CMUs to change component addresses after these changes have been made. Unproven DSR can notify component addresses ahead of the delivery year through rule 8.3.3a and proven DSR can reallocate components within the delivery year under rule 8.3.4.
Since its introduction in 2014, the CM has secured reliable capacity for when there is greater demand for electricity in Great Britain. This capacity is acquired through competitive annual auctions held four years and one year ahead of their respective delivery years. The Government regularly amend the framework underpinning the capacity market before auction cycles to ensure it is fit for purpose, cost-effective and meets broader strategic objectives such as clean power by 2030.
The Government intend to introduce these changes for the 2027 auctions coming into force for prequalification in summer of 2026. This will give participants clarity and certainty ahead of their entrance into prequalification and allow them to adapt to the changes the Government have made.
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Prison Capacity: Annual Statement
(1 day, 8 hours ago)
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The Parliamentary Under-Secretary of State for Justice (Jake Richards)
Today, I am publishing the second annual statement on prison capacity. This marks the second annual statement delivering the Government commitment to transparency and accountability in the criminal justice system.
This annual statement sets out updated prison population projections and supply forecasts. It shows that, when the impact of sentencing reforms is factored in, supply is expected to keep pace with demand in the central scenario. This is a significant step forward, but there is no single quick fix. The prison estate remains under pressure, and we will continue to take bold action to protect the public and restore confidence in the criminal justice system.
This Government inherited a prison system on the brink of collapse. At one point in 2024, fewer than 100 places remained in the adult male estate. Had prisons overflowed, courts would have been forced to suspend trials, the police to halt arrests and public safety put at risk. That was the legacy of years of neglect, during which only 500 net places were added to the estate in over 14 years.
That is why we acted decisively. In December 2024, we published the 10-year prison capacity strategy, setting out plans for the largest expansion of the prison estate since the Victorian era. We committed up to £7 billion between 2024 to 2025 and 2029 to 2030 to deliver 14,000 new prison places by 2031. This year’s statement shows the significant progress we have made. We have already delivered over 2,900 places and around 5,000 more are under construction, meaning we are on track to meet our target.
However, prison building alone is not enough. Without further action, the prison population is projected to rise by an average of 3,000 annually, outpacing supply even with our build programme.
That is why we launched the independent sentencing review and will deliver reforms through the Sentencing Act 2026. These reforms—including a presumption to suspend short custodial sentences, the extension of suspended sentence orders, an earned progression model, tougher community-based sentences, changes to recall and remand, and earlier removal of foreign national offenders—are expected to reduce the prison population by around 7,500 places by 2028, while keeping the public safe and improving outcomes for victims.
The Probation Service is central to the safe and effective operation of the criminal justice system, to the delivery of the Sentencing Act 2026 and managing demand on the prison estate. The statement therefore outlines key information of probation capacity, including caseloads and workforce. It also sets out progress to date and the steps being taken to strengthen probation capacity over the coming years. This includes investment of up to £700 million in probation and community services by 2028 to 2029, continued recruitment, and ongoing digital transformation to free up capacity and improve performance.
The new Sentencing Act 2026 places a statutory duty on the Secretary of State to lay before Parliament and publish an annual report on prison capacity. This fulfils a promise made in the previous annual statement to commit to making publication a statutory requirement, to ensure future decisions on prison demand and supply are evidence based and transparent. These steps mark a turning point: increasing capacity, strengthening accountability, and building a safer, fairer system for the long term.
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Lanarkshire AI Growth Zone and AI Opportunities Action Plan
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The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Kanishka Narayan)
Today I am updating the House on a number of developments: the designation of Lanarkshire as the UK’s newest AI growth zone, the establishment of the AI and the Future of Work programme, the expansion of the AI upskilling programme, and progress on delivery of the “AI Opportunities Action Plan”, one year on from its publication.
Lanarkshire AI growth zone
The Government are today designating Lanarkshire as the latest AI growth zone, marking a major step in our modern industrial strategy and strengthening Scotland’s position in the UK’s growing AI economy.
The Lanarkshire site will be delivered by UK company DataVita, in partnership with CoreWeave. It will support more than 3,400 jobs over the coming years and will crowd in £8.2 billion in private investment, with a further £540 million committed over 15 years to support the local community. This will fund skills and training packages, after school coding and digital clubs, and support for local charities and food banks.
The 9,000 acre site will be one of the most advanced AI campuses in the world, drawing on on site renewable energy to power up to 500MW of compute and exploring how excess heat generated by data centre cooling could support nearby facilities such as University Hospital Monklands, Scotland’s first fully digital and net zero hospital.
Lanarkshire becomes the fifth AI growth zone announced since the launch of the action plan, joining Oxfordshire, north Wales, south Wales and the north-east. AI growth zones are expected to support up to 15,000 jobs and at least £28 billion in private investment.
Establishment of the AI and the Future of Work programme and expansion of the AI upskilling programme
The Government are establishing a comprehensive AI and the Future of Work programme to ensure the UK is prepared to benefit from and adapt to the profound changes AI will bring to jobs, workers and the labour market. This includes launching a new cross Government AI and the Future of Work Unit and appointing an independent expert panel drawn from industry, academia, civil society and trade unions to guide this work.
Building on last year’s commitment to provide free AI training for all workers, the Government are expanding their national upskilling programme—delivered with major industry and now public sector partners—to equip 10 million workers with AI skills by 2030, up from the original 7.5 million ambition.
This forms part of a wider effort to ensure that AI-driven transformation delivers opportunities, supports economic growth, and helps workers and communities benefit from technological change.
AI opportunities action plan—delivery update
AI growth zones were a core commitment of the AI opportunities action plan, which the Government published a year ago to ensure the UK leads in shaping the AI revolution.
One year on, we have moved decisively from ambition to delivery. We have now met 38 of the action plan’s 50 commitments, and today we are publishing our one- year-on update. Per the action plan, we have focused on three goals: laying the foundations to enable AI, changing lives for the better, and securing our future.
Laying the foundations.
We have designated five AI growth zones, accelerating data centre build out. We have expanded national compute capacity, with Isambard AI switched on in Bristol and committed to procure to increase the supercomputer capacity at the University of Cambridge—already home to the DAWN supercomputer—sixfold by spring 2026. We have also begun the biggest AI skills drive in a generation: over 1 million AI training courses have already been delivered in just the last six months.
Changing Lives.
AI is already delivering practical benefits for citizens. AI-assisted diagnostics are supporting one third of NHS chest X-rays, improving detection and treatment times. We have announced trials of AI tutoring tools to support learning and reduce teacher workload.
Securing our Future.
UK AI companies raised more than £6 billion last year, and there are now over 185 UK tech unicorns valued at over $1 billion. The Government have now established the Sovereign AI Unit, backed by up to £500 million, to invest in UK AI companies and support them to become world-leading in critical parts of the AI value chain.
There is much more to do to seize the opportunities of AI. Over the coming year we will continue to bring AI growth zones from designation to delivery, operationalising the Sovereign AI Unit—backed by up to £500 million in funding—and equip millions of workers with the skills they need for the AI age.
But our achievements over the last year show what is possible when ambition meets delivery. If we sustain this pace, Britain will continue not just adapt to technological change, but to shape it in the public interest.
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Diffuse Mesothelioma Payment Scheme Levy 2025-26
(1 day, 8 hours ago)
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The Minister for Social Security and Disability (Sir Stephen Timms)
The Diffuse Mesothelioma Payment Scheme (Levy) Regulations 2014 require active employers’ liability insurers to pay an annual levy, based on their relative market share, for the purpose of meeting the costs of the diffuse mesothelioma payment scheme. This is in line with the insurance industry’s commitment to fund a scheme of last resort for persons diagnosed with diffuse mesothelioma who have been unable to trace their employer or their employer’s insurer.
Today I can announce that the total amount of the levy to be charged for 2025-26, the 12th year of the DMPS, is £24 million. The amount will be payable by active insurers by the end of March 2026.
Individual active insurers will be notified in writing of their share of the levy, together with how the amount was calculated and the payment arrangements. Insurers should be aware that it is a legal requirement to pay the levy within the set timescales.
I am pleased that the DMPS has seen 11 successful years of operation, assisting many hundreds of people who have been diagnosed with diffuse mesothelioma. The 11th annual report for the scheme, along with the annual statistics were published on 27 November 2025 and is available on gov.uk. I hope that Members of both Houses will welcome this announcement and give the DMPS their continued support.
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Jobs Guarantee
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The Secretary of State for Work and Pensions (Pat McFadden)
Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them. But for too long young people have not had access to the opportunities and support they deserve. Nearly a million young people are not in education, employment or training, locking them out of meaningful work, denying employers the workforce of the future and holding back economic growth.
At autumn Budget 2025, we announced an £820 million funding package to overhaul support and give a generation of young people a bright future through the youth guarantee. This investment will break down barriers to opportunity and ensure every young person can access the support they need to earn or learn.
Today I am pleased to announce the launch of the jobs guarantee grant application window for phase one, a central element of the expanded youth guarantee.
The jobs guarantee will provide every eligible 18 to 21-year-old who has been claiming universal credit and looking for work for 18 months a guaranteed, fully subsidised six-month paid job. This will include wraparound employability and in-work support to help participants succeed in their roles. The aim is to support young people in taking that crucial first step into sustained employment. Once fully rolled out, the programme is expected to support around 55,000 young people over the next three years, contributing to the Government long-term ambition to increase employment and reduce long-term youth unemployment.
We know that young people need support quickly and that is why we will begin the delivery of phase one from spring 2026 with over 1,000 job starts across six areas with some of the highest need: Birmingham & Solihull, East Midlands, Greater Manchester, Hertfordshire & Essex, Central & East Scotland, South-west & South-east Wales. This will be followed by a national roll-out of the jobs guarantee across Great Britain, later in 2026.
The application process for this stage of the jobs guarantee grant will be open from today until 28 February. Details can be found here: https://www.gov.uk/government/publications/jobs-guarantee The Department for Work and Pensions will award grants to selected delivery organisations in the six defined geographic areas. Successful applicants will administer the grant on behalf of DWP, bringing their experience of the local labour market to source suitable jobs and match young people to roles. They will also use their expertise to provide ongoing support to young people while they are on the scheme.
I would also like to thank the more than 60 employers who have already committed to providing jobs for participants of the scheme, including E.ON, JD Sports, Tesco and TUI. Once delivery partners are in place, they will work with employers to help secure these employment opportunities, with support from DWP for those large employers with a national footprint.
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