Energy – £14.1b to Sizewell, £2.5b to Fusion Development

Ten thousand jobs will be created as the government announces a £14.2 billion investment to build Sizewell C nuclear plant as part of the Spending Review, ending years of delay and uncertainty.

The Chancellor is set to confirm the funding at the GMB Congress later today ahead of the government’s Spending Review, as the Energy Secretary vows a ‘golden age’ of nuclear to boost the UK’s energy security.

The government’s investment will go towards creating 10,000 jobs, including 1,500 apprenticeships, and support thousands more jobs across the UK.

The company has already signed £330 million in contracts with local companies and will boost supply chains across the UK with 70% of contracts predicted to go to 3,500 British suppliers – supporting new jobs in construction, welding, and hospitality.

The equivalent of around six million of today’s homes will be powered with clean homegrown energy from Sizewell C. The investment in clean, homegrown power brings to an end decades of dithering and delay, with the government backing the builders in the drive for energy security and kick-starting economic growth.

Sizewell C

Sizewell C will provide 10,000 people with employment at peak construction and support thousands more jobs across the UK, including 1,500 apprenticeships. The company has already signed £330 million in contracts with local companies and will boost supply chains across the UK with 70% of contracts predicted to go to 3,500 British suppliers – supporting new jobs in construction, welding, and hospitality. Jobs in the nuclear industry pay well above national averages and the government is committed to working with nuclear trade unions such as the GMB, Unite, and Prospect, who will continue to play a pivotal role in building the industry.

Despite the UK’s strong nuclear legacy, opening the world’s first commercial nuclear power station in the 1950s, no new nuclear plant has opened in the UK since 1995, with all of the existing fleet except Sizewell B likely to be phased out by the early 2030s.

Sizewell C was one of eight sites identified in 2009 by then-Energy Secretary Ed Miliband as a potential site for new nuclear. However, the project was not fully funded in the 14 years that followed under subsequent governments.

The government’s nuclear programme is now the most ambitious for a generation – once small modular reactors and Sizewell C come online in the 2030s, combined with Hinkley Point C, this will deliver more new nuclear to grid than over the previous half century combined.

Fusion Energy

The government is also making a record investment in R&D for fusion energy, investing over £2.5 billion over 5 years. This includes progressing the STEP programme (Spherical Tokamak for Energy Production), the world-leading fusion plant in Nottinghamshire, creating thousands of new jobs and with the potential to unlock limitless clean power.

This builds on the UK’s global leadership to turbocharge economic growth in the Oxford-Cambridge corridor, while helping deliver the UK’s flagship programme to design and build a prototype fusion power station on the site of a former coal-fired plant.

Mike Clancy, General Secretary of Prospect, said:

Delivering this funding for Sizewell C is a vital step forward, this project is critical to securing the future of the nuclear industry in the UK.

New nuclear is essential to achieving net zero, providing a baseload of clean and secure energy, as well as supporting good, unionised jobs.

Further investment in SMRs and fusion research shows we are finally serious about developing a 21st century nuclear industry. All funding must be backed up by a whole-industry plan to ensure we have the workforce and skills we need for these plans to succeed.