Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what assessment they have made of the impact of AI tools on the UK’s outsourcing and contact-centre sector, including the use of AI-driven customer-service systems; and what implications this may have for employment patterns and skills demand in the sector.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Government recognises that AI is transforming workplaces, demanding new skills and augmenting existing roles. We have launched the AI and the Future of Work Unit - a cross‑government function dedicated to ensuring AI delivers positive outcomes for the economy, jobs, and workers. We are preparing for a range of possible futures to ensure this transformation boosts productivity and opportunities and the Government launched an assessment of AI impacts on the labour markets in January 2026.
To build a digitally skilled workforce to support long-term economic growth, drive innovation and expand individual opportunity we are supporting AI Skills Boost to upskill 10 million workers in AI skills by 2030. We have already delivered more than 1 million AI training courses have been delivered to workers across the UK.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the use of AI in the fashion industry to reduce unsold inventory and improve supply chain efficiency; and what support is available to retailers to adopt such technology to enhance productivity and sustainability.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The fashion industry is increasingly using AI to improve demand forecasting, reduce unsold stock and increase supply chain efficiency, thereby supporting productivity and sustainability. Businesses can access support to adopt AI through programmes such as Made Smarter and Innovate UK, alongside wider productivity, digital adoption and skills initiatives, helping businesses invest in technologies that improve efficiency while reducing waste and environmental impact.
The government supports responsible and ethical AI adoption across our world leading creative industries, enabling organisations and freelancers to improve productivity, reach new audiences and develop new products and services.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what steps they are taking to support UK researchers in the use of artificial intelligence, including measures to promote oversight and reproducibility.
Answered by Lord Vallance of Balham - Minister of State (Department for Energy Security and Net Zero)
We are working with UKRI, universities, and other partners to ensure the safe and responsible adoption of AI tools while protecting research integrity.
Our AI for Science Strategy recognises that the integration of AI into research holds potential to be the single most impactful application of the technology, setting out 15 actions that will support UK researchers. That will include the provision of compute through the AI Research Resource; delivery of training and upskilling in AI methods; the creation, curation, and scaling of AI-ready datasets; developing access models for AI tools; developing autonomous lab infrastructure, and supporting research into the impacts of AI on the scientific process.
Additionally, the National Data Library will support the foundations for AI-enabled research by improving access to high-quality public sector data, alongside recently published guidance to help public bodies make datasets AI-ready.
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 assessment they have made of the role of digital technologies in supporting treatment and recovery services for people experiencing drug and alcohol addiction.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government is continuing to invest in improvements to local alcohol and drug treatment services to ensure those in need can access high quality help and support. From 2026, all drug and alcohol treatment and recovery funding will be channelled through the Public Health Grant, with over £13.45 billion allocated across three years, including £3.4 billion ringfenced for drug and alcohol treatment and recovery.
Local authorities are responsible for assessing local needs for alcohol and drug prevention and treatment in their area, and commissioning services to meet these needs. The Government works with local treatment systems to provide a number of digital products including guidance, subject-matter expertise and data tools to help them deliver their service.
Digital products are derived from The National Drug Treatment Monitoring System and other related health datasets and made available via a dedicated website to enable local treatment systems to monitor treatment access and better manage outcomes.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what assessment they have made of the extent to which public procurement frameworks allow (1) the NHS and, (2) the Ministry of Defence, to support the development and adoption of AI technologies produced by UK-based companies.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
The Department for Science, Innovation and Technology has not made a formal assessment to date of the extent to which public procurement frameworks allow the NHS or the Ministry of Defence to support the development and adoption of UK produced AI.
However, the Government is actively looking at this through a cross government ministerial working group bringing together DSIT, the Department of Health and Social Care and the Ministry of Defence, which is exploring how government works with innovative UK companies, including in the AI sector. Alongside this, the Government’s wider approach is to use public procurement to make the public sector a first customer for innovative technologies and a launchpad for scale ups, supported by Cabinet Office led social value reforms and work through the Commercial Innovation Hub.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what steps they are taking to (1) support access to computing and AI education for schoolchildren, and (2) address disparities in digital literacy across England.
Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)
The government has accepted the relevant recommendations of the independent Curriculum and Assessment Review to ensure that young people become more digitally literate through a refreshed computing curriculum, including essential AI content, that builds digital confidence from an early age. We are considering how digital content can be integrated across other subjects to build strong, transferrable digital skills, and will replace the computer science GCSE with a broader qualification reflecting the full computing curriculum.
Work is underway to develop the new curriculum, and the department will conduct a public consultation on the draft programmes of study in summer 2026. To increase the number of pupils who will benefit from the reformed national curriculum, we are legislating so that academies will be required to teach it, alongside maintained schools.
We are continuing to invest in the National Centre for Computing Education to support teachers to teach about these topics with confidence.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of fintech investment platforms on competition, costs and investment choice in the self-invested personal pension market; and what steps they are taking to support innovation in digital pension products while maintaining appropriate regulatory safeguards.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government has not made a formal assessment of the impact of Fintech investment platforms on competition, costs and investment choice in the self-invested personal pensions (SIPPs) market.
The Financial Conduct Authority (FCA) is the regulator responsible for the SIPPs market. The FCA regularly reviews their relevant rules and regulations to ensure they are appropriate for the current market context. This includes supporting growth and innovation while maintaining appropriate regulatory safeguards to protect consumers.
As set out in the Government’s Financial Services Growth and Competitiveness Strategy, the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start up, scale and list.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact and role of accelerator and innovation programmes that support the growth of early-stage financial technology firms.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As set out in the Government’s Financial Services Growth and Competitiveness Strategy, the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start up, scale and list.
The Strategy set out a comprehensive package of reforms to maintain the UK’s global leadership in Fintech. This includes creating a competitive regulatory environment by making it quicker and easier for new firms to achieve regulatory authorisation, as well as welcoming the City of London Corporation and the British Business Bank facilitating greater access to finance. The Financial Conduct Authority and Prudential Regulation Authority have launched a joint Scale-Up Unit to enhance engagement with fast-growing innovative firms.
Research England is also supporting activity in FinTech through the INFINITY programme, a partnership led by the University of Nottingham and the University of Birmingham to help researchers explore commercial opportunities in financial technology. There has been good engagement so far, with over 100 research projects developing their business potential and a number of ventures now progressing towards market.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the risks associated with the expansion of buy-now-pay-later lending through digital wallets and online marketplaces; and how the new regulatory framework will ensure effective affordability checks and consumer protection.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government is aware that Buy‑Now, Pay‑Later (BNPL) products have become a standard feature of digital wallets and online marketplaces, allowing consumers to defer payment at the point of sale. While these products can be a convenient way to help spread the cost of purchases, the lack of regulation has left some consumers exposed to harm, particularly through unaffordable borrowing.
To address this, in July 2025 Parliament passed legislation to bring BNPL products within Financial Conduct Authority (FCA) regulation. The new rules will take effect this July, with the FCA having confirmed the final regulatory requirements in February.
Under the new regulatory regime, BNPL firms will be required to carry out proportionate but robust affordability assessments before lending, informed by appropriate checks on consumers’ financial circumstances and existing borrowing commitments. Firms will also be required to provide clear, timely and prominent information on repayment terms, the consequences of missed payments, and what rights consumers have, enabling them to make informed decisions. In addition, consumers will gain access to established protections for credit users, including the Financial Ombudsman Service and section 75 rights under the Consumer Credit Act. Together, these measures will support the continued use of BNPL products while ensuring appropriate consumer safeguards are in place.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of Revolt being granted a banking licence on regulation and competitiveness in the fintech sector.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Bank authorisations are a matter for the independent Prudential Regulation Authority.
As set out in the Government’s Financial Services Growth and Competitiveness Strategy, the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start up, scale and list.
The Strategy set out a comprehensive package of reforms to maintain the UK’s global leadership in Fintech. This includes creating a competitive regulatory environment by working with UK regulators to make it quicker and easier for new firms to achieve regulatory authorisation.