Committee publication · Correspondence · 6 July 2026
Letter to the Permanent Secretary at HM Treasury and the Permanent Secretary at the Department for Energy Security and Net Zero relating to Nuclear Liabilities Fund – the decision to no longer pre-fund decommissioning, 6 July 2026
Summary
The Public Accounts Committee writes to HM Treasury and the Department for Energy Security and Net Zero seeking detailed justification for the November 2025 Budget decision to stop pre-funding the Nuclear Liabilities Fund by shifting assets from the Mixed Asset Portfolio to the National Loans Fund. The Committee expresses concern about limited transparency regarding value-for-money and long-term fiscal implications, requesting six areas of clarification by 16 July 2026.
Key findings
- HM Treasury announced in November 2025 Budget intention to release funding by ceasing pre-funding of the Nuclear Liabilities Fund, involving asset reallocation from Mixed Asset Portfolio to National Loans Fund
- Committee notes decision appears to improve short-term fiscal position while altering long-term liability funding mechanisms, with limited supporting detail provided
- In July 2023, departments had stated Mixed Asset Portfolio was intended to grow over time to meet longer-term liabilities arising decades after initial decommissioning activity
- Committee seeks clarification on value-for-money case, implementation timeline, funding gaps, risk allocation with EDF Energy, fiscal sustainability implications, and governance framework
Tone
CriticalTopics
Key actors
Public Accounts Committee, HM Treasury, Department for Energy Security and Net Zero, James Bowler CB, Jonathan Brearley, EDF Energy, Sir Geoffrey Clifton-Brown MP, Comptroller and Auditor General
Notable line
“At its core, it appears to be a decision that improves the short-term fiscal position while altering how long-term liabilities are funded.”
Key Quotes
“I am surprised by the limited detail that was provided alongside or since the announcement regarding the value for money case for this decision.”
“… decisions that reduce pre-funding may shift cost and risk to future taxpayers. It is therefore essential that Parliament has a clear and transparent account of the long-term implications.”
“… the Mixed Asset Portfolio was intended to grow over time to meet longer-term liabilities, arising several decades after initial decommissioning activity”
Source · parliament.uk record ↗