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PAC chief warns ageing government IT leaves UK open to cyberattacks

The Register ·

Parliament’s Public Accounts Committee chair, Sir Geoffrey Clifton-Brown, says the UK government is pursuing AI while failing to address ageing IT systems and shortages of digital staff. He warns that outdated technology leaves departments exposed to cyberattacks, while AI could strengthen fraudsters and hostile states.

Only 6 per cent of civil servants work in digital and data roles, compared with a government target of 10 per cent. The PAC cites annual taxpayer losses of £55 billion to £81 billion from fraud and error, including £9.9 billion in overpaid benefits in 2025-26. It also highlights a troubled National Savings & Investments IT overhaul, whose cost reached £3 billion, and contrasts it with the Bank of England’s £431 million system upgrade.

  • PAC chair warns legacy IT leaves government exposed as AI advances.
  • Digital staff make up 6 per cent of civil servants, below the 10 per cent target.
  • NS&I’s IT overhaul reached £3 billion, while the Bank of England upgrade cost £431 million.

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The Public Accounts Committee (PAC) is a cross-party group of MPs that examines how government departments spend public money. It is chaired by Sir Geoffrey Clifton-Brown, and its findings can prompt scrutiny of departments’ plans and performance.

Government departments rely on computer systems to deliver services and handle sensitive information. Many systems were built decades ago, and replacing them can be costly and disruptive; departments also compete with other employers for people with digital and data skills.

Fraud and mistakes in public services can lead to large losses for taxpayers, while cyberattacks can disrupt services or expose information. Artificial intelligence may help public bodies detect problems, but it can also give fraudsters and hostile states new tools.

Both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

The government should first strengthen basic digital infrastructure and recruit more specialist staff, because ageing systems can create vulnerabilities across departments and make essential services less reliable. The reported fraud and error losses, alongside the costly NS&I overhaul, support the case for careful modernisation and better delivery before expanding AI use.

The case against

AI investment can help government improve services and detect fraud, and delaying it may leave departments less able to respond to emerging threats or make efficient use of public funds. The reported figures also point to a need for stronger project management and targeted recruitment, rather than necessarily putting AI ambitions on hold until legacy systems are fully replaced.

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Originally published by The Register as “UK government chases AI while aging IT leaves it exposed, PAC chair warns”.

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