Sizewell C nuclear plant a 'terrible deal' for UK taxpayers, MPs warn

By LineZotpaper AI staff

Published28 October 2026

Read Time3 min

The UK public accounts committee has warned that the government's funding model for the Sizewell C nuclear plant in Suffolk is a 'terrible deal' for taxpayers, with costs potentially rising to nearly £48bn and consumers facing billions in extra charges.

MPs on the public accounts committee (PAC) have criticised the government's plan to finance a multibillion-pound nuclear plant at Sizewell in Suffolk, calling it a 'terrible deal' for UK taxpayers over the rest of the century.

According to the PAC, the cost of the Sizewell C reactor could spiral to almost £48bn, leaving bill payers to provide an extra £9.8bn before 2040 and a further £12bn over its 60-year operating life. The committee said taxpayers and consumers face a 'high level of risk' after the government agreed to take a near-45% stake in the project, which is seen as a successor to the delayed Hinkley Point C plant in Somerset.

Under the funding deal, paid through taxes and energy bills, the UK government holds a 44.9% stake, French state nuclear developer EDF holds 12.5%, British Gas owner Centrica holds 15%, Canadian investment group La Caisse holds 20%, and investment manager Amber Infrastructure holds 7.6%. The government was forced to take a larger share after buying out Chinese state nuclear developer CGN, which had held a 20% stake before national security concerns emerged.

The watchdog warned that while the public could be asked to shoulder multibillion-pound cost overruns, private investors would only need to put in an extra £30m.

Sir Geoffrey Clifton-Brown, the PAC chair, said: 'The high level of risk borne by taxpayers and consumers for the construction of Sizewell C is extraordinary. Private investors look set for significant returns on their investments, while customers are likely to be saddled with higher energy bills.' He urged the government to focus on successful delivery to build confidence in the UK's nuclear industry so taxpayers are 'never put in this position again'.

A government spokesperson said the report 'completely ignores that investors are incentivised to complete construction as cheaply and quickly as possible'. They added: 'Once operational, Sizewell C could save £2bn a year across the energy system, cutting costs for families up and down the country, and the project is already making good progress with over 2,000 workers on site.'

The government expects Sizewell C to cost between £40.5bn and £47.7bn, with construction completed between 2039 and 2043. The committee has asked for the scenario analysis underpinning cost estimates within three months and for six-monthly progress updates.

Critics, including Alison Downes of the Stop Sizewell C campaign group and Prof Steve Thomas of Greenwich Business School, who provided joint evidence, suggested that abandoning the project today would cost less than paying inflated energy bills over 60 years 'multiple times over'. They called on the government to rule out using this funding model for future nuclear projects, saying: 'All it offers is a free ride for investors and financial pain for households.'

Tom Greatrex, chief executive of the Nuclear Industry Association, said Sizewell C would provide 'clean, reliable and constantly available power' and save households billions from grid balancing costs. He noted that consumers are currently paying £2.8bn this year to manage a 'dysfunctional grid', paying for wind to stop generating and for gas backup.

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Ownership stakes in Sizewell C nuclear plant

Source: Public Accounts Committee

Analysis

Why This Matters

The funding model puts taxpayers and energy bill payers at risk of paying billions in cost overruns for a project that may not be completed until the 2040s.
The decision could set a precedent for how future UK nuclear projects are financed, affecting the affordability and public acceptance of nuclear power.
The project is central to the UK's energy strategy, with potential savings of £2bn per year claimed, but also risks of higher bills for consumers over 60 years.

Background

The Sizewell C plant is a planned nuclear power station in Suffolk, designed as a successor to the Hinkley Point C project in Somerset, which has faced significant delays and cost increases. The UK government took a near-45% stake after buying out Chinese state developer CGN over national security concerns, leaving the state as the majority public investor. The project is part of the UK's effort to secure low-carbon power and reduce reliance on fossil fuels, but its high upfront costs and long construction timeline have sparked debate over who bears the financial risk.

Key Perspectives

Public Accounts Committee: Says the deal is a 'terrible deal' for taxpayers, with a 'high level of risk' and private investors set for 'significant returns' while customers face higher bills. Government spokesperson: Says the report ignores that investors are incentivised to complete construction cheaply and quickly, and that the plant could save £2bn a year once operational. Critics (Alison Downes and Prof Steve Thomas): Argue abandoning the project now would be cheaper than paying inflated energy bills over 60 years, and call for an end to this funding model. Nuclear Industry Association: Says Sizewell C provides clean, reliable power and will save households billions by reducing grid balancing costs.

What to Watch

The government's response to the committee's request for cost scenario analysis within three months.
Whether construction stays on schedule and within the estimated £40.5bn to £47.7bn range.
Any signs of cost overruns or delays that could trigger additional taxpayer burden or political backlash.

Sources

Plan for multibillion-pound Sizewell nuclear plant a ‘terrible deal’ for UK taxpayers, MPs say · The Guardian

Checked

12 claims in this story checked against 1 source: 11 supported.

Show each claim

SupportedThe PAC warned that the funding deal was a “terrible deal” for UK taxpayers over the rest of the century.Business | The Guardian: “The government’s plan to fund a multibillion-pound nuclear plant at the Sizewell site in Suffolk represents a “terrible deal” for the UK taxpayer over the rest of the century, according to the government’s spending watchdog.”
SupportedThe Sizewell C project could cost almost £48bn.Business | The Guardian: “MPs on the public accounts committee (PAC) have warned the government that the cost of the Sizewell C nuclear reactor could spiral to almost £48bn”
SupportedBill payers could have to provide an extra £9.8bn to construct the plant before 2040.Business | The Guardian: “leaving bill payers on the hook to provide an extra £9.8bn to construct the plant before 2040”
SupportedBill payers could face a further £12bn over the plant’s 60-year operating life.Business | The Guardian: “and a further £12bn over its 60-year operating life.”
SupportedThe government holds a 44.9% stake in Sizewell C.Business | The Guardian: “the UK government holds a 44.9% stake”
SupportedPrivate investors would need to put in only an extra £30m if costs overrun.Business | The Guardian: “the nuclear project’s private investors would only need to put in an extra £30m.”
SupportedSir Geoffrey Clifton-Brown said the risk to taxpayers and consumers was extraordinary and customers were likely to face higher energy bills.Business | The Guardian: ““The high level of risk borne by taxpayers and consumers for the construction of Sizewell C is extraordinary. Private investors look set for significant returns on their investments, while customers are likely to be saddled with higher energy bills.””
SupportedA government spokesperson said the report “completely ignores” investor incentives, and said the project could save £2bn a year across the energy system.Business | The Guardian: “A government spokesperson said the report “completely ignores that investors are incentivised to complete construction as cheaply and quickly as possible” through the terms of the deal. “Once operational, Sizewell C could save £2bn a year across the energy system”
SupportedThe government expects Sizewell C to cost between £40.5bn and £47.7bn and construction to be completed between 2039 and 2043.Business | The Guardian: “The government expects Sizewell C to cost between £40.5bn and £47.7bn and to complete construction between 2039 and 2043.”
Partly supportedConsumers are paying £2.8bn this year to manage the grid.Business | The Guardian: ““Currently, the consumer is footing a bill of £2.8bn so far this year to manage a dysfunctional grid”
SupportedDownes and Thomas said abandoning the project now would cost less than paying inflated energy bills over 60 years, “multiple times over”.Business | The Guardian: “Critics of the project, including Alison Downes of the Stop Sizewell C campaign group and Prof Steve Thomas of Greenwich Business School, who provided joint evidence to the committee, have suggested that the cost of abandoning the project today would be lower than the cost of paying inflated energy bills over 60 years “multiple times over”.”
SupportedThe committee asked the government to provide its cost-estimate scenario analysis within three months.Business | The Guardian: “The committee has called on the government to provide the scenario analysis it used to underpin its cost estimates for the project within the next three months.”