Sellafield has said nearly £3bn in new funding is “not enough” and bosses are now examining swingeing cuts, prompting fears over jobs and safety at the vast nuclear waste dump.
The Cumbrian nuclear site, which is home to the world’s largest store of plutonium, was last week awarded £2.8bn for the next financial year, the bulk of the total of just over £4bn funds allotted to the Nuclear Decommissioning Authority, a taxpayer-owned and funded quango.
Sellafield’s chief executive, Euan Hutton, has told staff that the funding was “not enough” to carry out planned works, leaving bosses to make “difficult decisions” over spending, sources told the Guardian.
A spokesperson for Sellafield said: “While this is significant funding, it will not be enough for all our planned activities. Critical work will continue but some projects will need to be slowed down, paused, or stopped. This will impact parts of our supply chain.”
Hutton told employees at the site – which employs more than 10,000 people – that all areas of the business will be affected and spending reviewed.
It is understood that internal calculations had forecast that at least £3.1bn would be needed to meet Sellafield’s spending requirements next year, when accounting for rising costs. The site was awarded £2.8bn for the current financial year.
The public spending watchdog has said the ultimate cost of cleaning up Sellafield is expected to rise to £136bn, causing tensions with the Treasury as the chancellor, Rachel Reeves, attempts to tighten public spending and spur growth.
In 2023, the Guardian’s Nuclear Leaks investigation revealed a string of safety concerns at the site – from issues with alarm systems to problems staffing safety roles at its toxic ponds – as well as cybersecurity failings, radioactive contamination and allegations of a toxic workplace culture.
Hutton has not told staff which projects could be paused or stopped at the site, which covers two square miles and hundreds of buildings. Staff carry out a range of work from painstakingly emptying the toxic ponds to building new facilities to house nuclear waste.
Hutton said that safety and security would be prioritised and the site would adhere to legal and regulatory rules, sources said.
However, staff at the hazardous toxic site in north-west England remain concerned that cuts to spending could affect safety and jobs.
Dan Gow, a senior organiser at the GMB union, said: “GMB calls on Sellafield to be fully transparent about any cost-saving measures and to engage with us to ensure the workforce is protected.
“No worker should ever have to fear that budget cuts will put their safety at risk.
“GMB is urging all workers to stand together, stay informed, and ensure their voices are heard. Now more than ever, being part of a strong, organised union is the best way to protect jobs, rights and safety.”
The Office for Nuclear Regulation last week took Sellafield out of special measures for its physical security – but said concerns remained over its cybersecurity.
after newsletter promotion
The watchdog issued an improvement notice after two railway wagons on the site carrying nuclear waste crashed. The ONR said the incident could have had “serious consequences”, although no one was injured and there was no radiation risk.
Last year, Sellafield was ordered to pay almost £400,000 after it pleaded guilty to criminal charges over years of cybersecurity failings and made a formal apology to the court.
In 2023-24, the NDA spent £2.7bn on Sellafield and the site received £800m in income, according to the National Audit Office.
Europe’s most hazardous industrial site has previously been described by a former UK secretary of state as a “bottomless pit of hell, money and despair”.
The Sellafield spokesperson said: “We’re working with our employees, trades unions, supply chain and stakeholders to understand and manage any impacts.
“While this is a challenge, it also gives us opportunities to reset and do things differently.”
The NDA, which is funded through a government grant and income generated from nuclear sites, said: “We expect our government grant to increase next year to offset anticipated revenue reductions, reflecting continued investment in our mission.
“Rising inflation however, means that our overall funding will be less than this year and not enough to cover all our planned activities for 2025-26.”
