Nuclear Decommissioning Authority: Contingent Liability Notification
House of Commons · Written Statements · 24 Jun 2026 · 1 speech · Official Report
My hon. Friend Lord Vallance of Balham, Minister of State for Science, Research and Innovation has today made the following statement: I wish to inform the House that the Department for Energy Security and Net Zero intends to undertake a contingent liability to provide the Nuclear Decommissioning Authority with an indemnity to cover risks arising from losses and damages to construction projects across NDA sites. The indemnity is expected to save the NDA at least £1 million per year compared to insurance premiums and will provide certainty of cover. It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the minute, except in cases of special urgency in line with “Managing Public Money”. The indemnity covers construction projects on NDA sites against damage from terrorism, fire, flood or other natural hazards. The probability of crystallisation is low and mitigated by robust risk assessments, site access restrictions, rigid safety controls and regulations. It will cover only non-Nuclear Installation Act 1965 risks, as those are covered under the nuclear indemnity. Construction insurance is an industry norm and the...