Committee publication · Estimate memoranda · 11 February 2026

UKAEA Pension Schemes Supplementary Estimate Memorandum 2025-6

From: Energy Security and Net Zero Committee

Summary

This supplementary estimate memorandum requests £289.5m in Resource Annually Managed Expenditure (AME) and £291.3m in net cash requirement for 2025-26 to fund the UK Atomic Energy Authority Pension Schemes. The unfunded, defined-benefit pay-as-you-go scheme covers retired members and dependants across multiple public bodies. Spending increased 12% on resource and 15.8% on cash versus 2024-25 due to 5% active membership growth, backdated pay awards, 1.7% pension increases, and a 3% rise in retirements.

Key findings

Resource AME sought is £289.5m for 2025-26, up 0.3% from Main Estimate (£290.4m) but up 12% from 2024-25 outturn (£258.4m)
Net cash requirement is £291.3m, down 3.8% from Main Estimate (£302.7m) but up 15.8% from 2024-25 outturn (£251.6m)
Key drivers: 5% increase in active membership, large backdated pay awards, 1.7% pension increase from April 2025, and 3% increase in retirements
Scheme liabilities estimated at £5,371m as at 31 March 2025 with approximately 40,000 members (active, deferred, and pensioners)
Administration costs are £2.4m for 2025-26, broadly in line with previous years, reimbursed on per capita basis by participating employers

Tone

Procedural

Topics

public-financepensionsnuclear-energy

Key actors

Department for Energy Security and Net Zero, UK Atomic Energy Authority, HM Treasury, Government Actuary's Department, Martin Gaunt, Clive Maxwell

Notable line

“The net resource requirement has remained reasonably stable but varies each year as the resource items”

Key Quotes

“The UKAEA Pension Schemes are an unfunded, defined benefit pay-as-you-go occupational pension scheme operated by the UKAEA Pension Schemes on behalf of the members who satisfy the membership criteria.”
— Memorandum text · describing the nature of the pension scheme

“The provision sought under Resource AME is higher than last year by 12%. This is due to an increase in active membership in the scheme (5% increase) as well as large, backdated pay awards across several of the main employers …”
— Memorandum text · explaining key drivers of spending changes

“Due to the planned scheme closure in 2026-27, a full valuation as at 2025 is not planned, however the Government Actuary's Department recalculate the liability figure each year.”
— Memorandum text · on actuarial valuation approach

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Source · parliament.uk record ↗