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Concerns rise over delays and costs at Sellafield nuclear site

The National Audit Office reports that Sellafield, the UK's most complex nuclear site, is not yet delivering value for money due to project delays, increased costs and staffing issues

The National Audit Office (NAO) has raised concerns over ongoing challenges at Sellafield, the UK’s most complex nuclear site.

A new report states that Sellafield, operated by the Nuclear Decommissioning Authority (NDA), is not yet achieving value for money.

The report highlights delays in project completion, increased costs and staffing issues as key problems impacting the site’s progress.

Sellafield, overseen by the NDA, is responsible for managing hazardous waste and decommissioning facilities.

The NDA manages 17 nuclear sites, with seven more to be added to its remit.

Since the NAO’s last report in 2018, Sellafield has shown progress, including removing hazardous materials, such as a radioactive zeolite skip from the First Generation Magnox Storage Pond in March 2024.

The NDA has also restructured to tackle past procurement and delivery problems. It shifted from private sector management of nuclear sites to a group subsidiary structure, hoping to cut costs and improve operations.

However, tensions have existed between Sellafield, the NDA, and the Office for Nuclear Regulation (ONR).

In 2023, changes in senior management and internal culture suggested some improvement, but ongoing concerns remain, according to the NAO.

The NAO found that Sellafield has paid out staff bonuses inaccurately, with £2.1 million extra awarded in 2023.

According to the report, the organisation’s senior management treated missed targets as if they had been met, inflating performance scores.

This practice, along with delays in emptying legacy ponds and silos, raises questions about the effectiveness of Sellafield’s management, the NAO says.

Compared to 2018, the timeline for emptying key storage areas has been pushed back by six to 13 years.

Efforts to speed up waste retrieval are underway, with the hope of reaching a significant acceleration by the mid-2030s.

However, there are concerns that treatment facilities may not last long enough to handle all stored waste.

The report also reveals that four major projects, first highlighted in 2018, have seen costs rise by £1.15 billion and delays of 58 to 129 months.

NDA Group Chief Executive Officer, David Peattie, said: “The NDA and Sellafield welcome this report, and its recognition of the progress on numerous fronts at Sellafield since the last report in 2018, including benefits achieved through the new NDA group model.

“Sellafield is one of the most complex environmental programmes in the world. We’re proud of our workforce and achievements being made, including the unprecedented retrieval of legacy waste from all four highest hazard facilities.

“But as the NAO rightly points out there is still more to be done. This includes better demonstrating we are delivering value for money and the wider significant societal and economic benefits through jobs, the supply chain, and community investments.

“With the support of our workforce, community, and stakeholders we remain committed to driving forward improved performance and continuing to deliver our nationally important mission safely, securely, and sustainably.”

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