Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
Committee took evidence on the decommissioning of the Sellafield site.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Energy Security and Net Zero (the Department), the Nuclear Decommissioning Authority (the NDA) and Sellafield Ltd on the decommissioning of the Sellafield site.1
Government Response Summary
The government agrees and states the recommendation has been implemented, detailing existing oversight frameworks and a recently implemented new governance structure by DESNZ and UKGI. Within 2025-26, the department will initiate a review of this revised governance structure.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The Department for Energy Security and Net Zero has recently heightened its oversight of the performance of the Nuclear Decommissioning Authority (NDA) and, in turn, Sellafield. The department, supported by UK Government Investments (UKGI), exercises oversight of the NDA through a set of frameworks and systems including: • Delegation of Accounting Officer requirements from DESNZ to the NDA Chief Executive Officer (CEO) with Accounting Officer responsibilities, in line with the corresponding HM Treasury settlement letter. • Annual priorities letter issued to the NDA Chair and CEO to set out the department’s expectations. • Annual performance review focusing on performance against annual targets. • Monthly governance and sponsorship meetings. • A cadence of senior civil service and Ministerial meetings. • Through robust scrutiny of programmes and projects through the department’s Portfolio and Investment Committee (PIC). PIC spends around 28% of time on NDA-related cases. • ‘Deep dives’ into specific areas of interest. • Attendance at NDA’s performance reviews of its operating companies. • Regular site visits. Since January 2025, the department has increased its direct oversight by implementing a new governance structure. • Previously run by UK Government Investments (UKGI), the department’s Principal Sponsor now chairs monthly performance meetings. UKGI has responsibility for overseeing operational and safety performance including monitoring performance against annual targets. • The department has assumed responsibility from UKGI for overseeing major project and commercial/contract performance. • UKGI maintains oversight of corporate and financial performance across areas such as health and safety, key targets, operations, culture, people, and risk. • Strengthened the focus of the Senior Civil Service and Ministerial meetings to focus on quarterly performance against the annual targets. • Instituted a reporting cadence of monthly to senior officials and quarterly to Ministers. Within this financial year, 2025-26, the department will: • Initiate a review of the revised governance structure to ensure it maximises effectiveness.