Select committee: Public Accounts Committee

Conclusion 3

18th Report - Use of AI in Government Published 26 Mar 2025 Addressed to HM Treasury
Conclusion (the committee's words)
There are persistent digital skills shortages in the public sector and DSIT’s plans to address the skills gap may not be enough. 70% of government bodies responding to the NAO’s survey identified difficulties in recruiting and retaining staff with AI skills as a barrier to AI adoption. In 2024, around 50% of roles advertised in civil service digital and data campaigns were unfilled. In January 2025, the government’s State of digital government review set out the skills challenge faced by government. These include persistent difficulties recruiting, civil service pay levels that are uncompetitive with the private sector and the need for more technical roles within the profession. Its Blueprint for modern digital government sets out a series of priority reforms including plans to adopt a digital–first operating model, assess the optimum employment models, strengthen digital leadership, and assess competitiveness of the overall package for digital and data staff. However, the Public Accounts Committee has repeatedly raised concerns about the digital skills gap in previous examinations of digital transformation in government and we remain sceptical that these reforms will address the issue where previous attempts have failed. 5 recommendation DSIT and Cabinet Office should write to the committee alongside publication of the Digital and AI Roadmap to: • explain how the planned reforms are expected to resolve the skills gap and by when, including how they will encourage the flow of digital skills between the private and public sectors, ensure digital leaders are more influential in decision making and embed a digital–first ethos into the civil service • explain how they will monitor and evaluate the reforms so they can take action swiftly if reforms are not successful, and • set out their plans for reporting progress publicly

From: Public Accounts Committee, 18th Report - Use of AI in Government (HC 356), 26 March 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Eighteenth Report of Session 2024-26

The government responded to the whole report on 4 June 2026.

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Treasury minutes: Government response to the Committee of Public Accounts on the Eighteenth report from Session 2024-26

Published 18 September 2025.

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Treasury minutes: Government response to the Committee of Public Accounts on the Eighteenth report from Session 2024-25

Published 10 July 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government states that it agrees with each of the Committee's recommendations, setting target implementation dates between October 2025 and June 2026.

  • On legacy technology, it agrees and says GDS will define "consistent metrics and methods" to measure the ongoing costs of legacy systems and the estimated cost of failing to remediate or replace them, with a target date of January 2026.
  • On transparency, it is "aiming to publish" Algorithmic Transparency Recording Standard records for all currently identified in-scope tools in government departments (not including arm's-length bodies) "by the end of 2025".
  • On digital skills, it agrees and says all executive committees will be required to include digital leaders and boards to appoint digital non-executive directors "by 2026", with further detail in the forthcoming Government Digital and AI Roadmap.
  • On scaling AI pilots, it agrees and says a proposal is "currently being developed" in the Public Sector AI Adoption programme, with a target implementation date of May 2026.

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