Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Accepted
UKGI's role in NDA oversight remains unconvincing and unclear.
Recommendation
The previous Committee questioned whether UK Government Investments (UKGI) ‘is playing any useful role’ – and whether its function could instead be discharged by the Department.78 The Department told us that UKGI did help it hold the NDA to account, and that its teams had particular expertise in corporate governance, while the NDA told us that it was “a helpful adjunct to how we operate”. However, the specific examples the NDA gave (around appointment of non–executive directors and attendance at the NDA Board) were far from convincing.79
Government Response Summary
The government stated the recommendation is implemented, explaining that DESNZ has heightened its oversight of the NDA, assumed responsibility for major project and commercial/contract performance from UKGI, and will initiate a review of the revised governance structure in 2025-26.
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.