Government announces extra £1.3 billion investment into Sizewell C

The nuclear power station is planned for the Suffolk coast

Author: Sian RochePublished 23rd Jan 2024

The Government's pledging an extra £1.3 billion towards a new nuclear power plant on the Suffolk Coast.

The government says Sizewell C will create thousands of jobs and stable, cheaper and more secure power for up to 6 million homes.

They say this money, the largest funding package to date, will allow early construction works to continue ahead of a final investment decision later this year.

The funding – which is coming from existing budgets – will support ongoing preparatory works such as improvements to roads and rail lines around the Suffolk site, ensuring the necessary local infrastructure is in place before full construction begins.

Investing an additional £1.3 billion consolidates the government’s position as the majority shareholder in the project, reached in December 2023.

It follows a £700 million funding pledge in November 2022 and a further £511 million agreed last summer.

"A slap in the face"

The investment's drawn criticism from campaigners opposed to the plant, with some saying the move 'shackles' taxpayers to the project with little interest from external investors.

Pete Wilkinson, is from Together Against Sizewell C: “A further £1.3bn of taxpayer money for the white elephant Sizewell C project is nothing short of a contemptuous slap in the face for the UK’s cash-starved public services.

"While their funding stagnates, the French government owned EDF now benefits from a total of £2.5 billion in UK government handouts for a £30+bn project still awaiting a water supply, an adequate sea defence design, an array of permits and licences, not to mention investors who are conspicuous by their absence.

"Sizewell C remains a purely speculative project, lacking transparency on cost and value for money leaving bankrupt EDF the only winners, laughing all the way to the bank!”

The investment decision was announced on the same day TASC confirmed it's taking a legal appeal against the plant to the Supreme Court.

What does the government say?

Nuclear Minister Andrew Bowie said: "We are making fantastic progress on the next GW-scale power plant in the UK’s nuclear pipeline.

"This investment injection means we can steam ahead with work on Sizewell C ahead of the final investment decision targeted later this year.

"It’s a win for our energy security and sends a strong message to investors that Britain is serious about its low-carbon, homegrown nuclear-powered future, providing reliable, cheaper power for British families."

What do the managers of Sizewell C say?

Julia Pyke and Nigel Cann, Joint Managing Directors at Sizewell C, said: "This significant investment underlines the importance of Sizewell C for Britain and is a further sign of confidence in our team to deliver it. With the project now in construction, the funding means we can step up activity in Suffolk and deliver on our commitments to local communities.

"Sizewell C will build on the huge contribution of Hinkley Point C in restarting nuclear construction in Britain. It will bring another big boost to British nuclear skills and training, putting the industry in an even better position to deliver the other projects this country needs for its low carbon future.

"In addition to the 500 people employed so far, Sizewell C has plans to award 70% of the value of construction to UK businesses, helping to create thousands of jobs in Suffolk and nationwide. The project will also create 1,500 apprenticeships, helping to build the skills base to support the UK’s long-term plans for new nuclear.

"Once operational, the plant will generate 3.2GW of electricity, equating to 7% of the UK’s needs and enough to power up to 6 million British households for over 60 years."

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