Consultation outcome

NDA Social Impact and Communities Strategy Draft for Consultation - November 2023

Updated 5 April 2024

Introduction and context

The Nuclear Decommissioning Authority (NDA) is the executive non-departmental government body charged with decommissioning the UK’s earliest nuclear sites safely, securely and cost effectively. We do this work with care for our people, communities, and the environment, with safety always as our number one priority.

This strategy flows from the Energy Act (2004) that provides the NDA with a unique legal duty to have regard for the impact of its activities on communities living near its sites, as well as the wider responsibilities all public bodies have under the Social Value Act (2012).

This strategy informs the socio-economic and social impact elements of the overall NDA strategy and the requirements placed

on relevant NDA group operating companies with dedicated Social Impact programmes, namely the NDA itself, Sellafield Ltd, Nuclear Restoration Services (NRS)¹ and Nuclear Waste Services (NWS)² (excluding the Community Investment Funding arising from the implementation of the Government’s Working with Communities Policy). It does not apply directly to the other NDA subsidiary companies (Nuclear Transport Solutions (NTS), NDA Properties, Rutherford Indemnity, NDA Archives and Energus).

As a group, we are determined to deliver the maximum positive social impact from the significant public investment made in our mission each year

This Social Impact and Communities strategy is aligned with the NDA’s strategy and the NDA group’s sustainability strategy . This strategy takes account of the UN Sustainable Development Goals and informs the individual social impact strategies and plans of our applicable operating companies. Furthermore, and reflecting the importance we place on our communities, this strategy has been developed in consultation with representatives from our local communities and seeks to reflect their priorities wherever possible.

The NDA does not regard social impact as an additional or optional work stream. We believe that decommissioning activities should benefit local communities, whilst developing the required capabilities for future mission delivery and providing a positive legacy during and upon completion of our work. The NDA is committed to working closely with the UK, Scottish and Welsh Governments, local authorities, local partners, supply chain companies and other stakeholders in the delivery of this strategy and future updates to it.

This strategy alone does not capture the entire range of social impact work undertaken across the group. Outside of the scope of this strategy, the NDA group works to generate positive social impact though our day-to-day operational activities such as:

• recruitment, skills and training

• buildings, accommodation and land use

• social value delivery through our supply chain and procurement

• bespoke planning agreements

The NDA group directly invests around £15m each year on social impact work; typically these are economic interventions in specific communities co-created with local stakeholders and utilising independently produced economic baselines that detail the social and economic impact of our activities on those communities nearest to our sites. This strategy relates to how those interventions are created and how these investments are made.

Background and analysis

Most of the NDA’s sites are in coastal, rural and relatively remote locations. We are a significant employer in many of these communities and in some we are the largest. All of our sites have quantifiable yet varying impacts on their local economy.

Our understanding of these sites is underpinned by research into the social and economic impact of our activities on the communities near our sites. These include:

• The economic contribution of the NDA to the West Cumbria economy – Oxford Economics (April 2022)

• Economic impact assessment of Magnox sites – Economic Insight (May 2022)

• Dounreay socio-economic report – Mace (September 2022)

These studies allow us to estimate the importance of our sites in terms of employment and wider economic impact. They also give some insight into how strong each local economy is and how dependent the local community is on our sites.

External factors effect dependency, including the availability of alternative employment. In the case of decommissioning, employment levels and the associated economic effects may change as work at each site progresses. Timeframes for decommissioning vary across our sites which means economic impacts vary too. Some sites, most notably those in West Cumbria, will be nationally important centres for nuclear materials, spent fuel management and waste management for many decades to come.

This Social Impact and Communities Strategy aims to ensure we understand the impacts of our sites on the community and vice versa and make well informed decisions when going about our work.

Based upon the detailed analysis of the independently produced economic impact studies, North West Wales, Caithness and North Sutherland and West Cumbria constitute clear priority areas for our social impact work, however, we will continue to make funding available for projects across the whole estate.

Our work

The Social Impact and Communities Strategy aims to deliver against the following six strategic themes:

• Resilient economies: projects or programmes designed to enable and support the conditions for local economic output, improved productivity, and growth.

• Thriving communities: projects or programmes designed to enable and support the conditions for social cohesion, supporting disadvantaged groups and other social benefits.

• Sustainable incomes: projects or programmes designed to improve aspirations and access to work through a programme of high impact education, skills, personal development and employability support activities.

• Sustainable growth: reflecting the increasing importance of the climate agenda and working to achieve economic, social and competitive advantage for our nuclear communities by integrating sustainable growth into our socio-economic interventions.

• Social value chains: to work closely with our suppliers to create social impacts with our supply chain.

• Collective impact: to leverage social impact and investment by working with our stakeholders, partners and communities to practice an integrated approach and culture of delivery.

Grant funding

The NDA group has grant giving powers which are administered in collaboration with each of our operating companies. Grants are available for projects which support the delivery of this strategy in communities near to our sites. More information on our grant programme can be found in the detailed guidance for applicants and practitioners which is published alongside this strategy.

Budgets for social impact funding are decentralised across the NDA group to ensure alignment with local priorities. There are five budgets across the NDA group and the total social impact budget of the NDA is roughly £15m per year as set out in Appendix A.

Social value through procurement

Our procurement practices help to deliver the Social Value Model created by Government and specified by Procurement Policy Note PPN 06/20. We take social value and wider socio-economic factors into account in all of our applicable procurements, considering contribution to the following priority themes when awarding contracts:

• Tackling economic inequality

• Fighting climate change

• Equal opportunity

• Wellbeing

Where appropriate, we would expect such social value contributions to align with this strategy and the strategies and plans of the specific operating companies.

Decision making

We aim to be transparent about our decision-making process and details on decision making for grant funding are available in our practitioner’s guidance.

Our processes follow Cabinet Office guidelines as set out in ‘Managing Public Money’ and ‘Guidance for General Grants (2021)’ which are intended to provide transparency, better achievement against objectives and value for money. For grant funding we take a proportionate approach including the use of the HM Treasury five case model approach where appropriate. In line with the NDA value framework we will always take decisions which:

• never compromise on safety or security

• take full account of our social, economic, and environmental responsibilities

• put the three pillars of sustainability and social value (social, economic and environmental) at the heart of the decisions we make.

Evaluating the impact of projects includes consideration of factors such as local job creation and safeguarding of existing jobs, providing training opportunities, engaging young people, encouraging active and healthy pursuits which improve physical and mental wellbeing, securing inward investment in our communities, protecting the environment and tackling climate change, addressing causes of disadvantage and reducing inequalities.

The level of governance required varies and is proportionate to the level of funding requested. For larger projects, in order to gain the maximum social impact for our communities, priority is given to projects which enable inward investment from other sources.

Outcomes and monitoring

Our intention is that through application of this strategy and through close working with our partner organisations and communities we can achieve the following:

• optimum allocation of the NDA group socio economic budgets

• a pipeline of high-quality projects of different types and values

• transparency of decision making supported by evidence

• demonstrable delivery progress and measurable social impact

• evidence of ‘adding value’ including maximising on 3rd party funding where possible.

With reference to our strategic themes, we will produce regular reports on our social impact programme(s) and these will be published to provide transparency around our work.

Appendix A - Funding

This NDA Social Impact and Communities Strategy has been developed in consultation with local representatives from communities around all the NDA sites which are covered by this strategy. We have listened to social and economic priorities and, where possible, recognised these in this strategy. We will use this input to inform our implementation of the strategy but will also remain responsive to changing requirements and priorities.

Through our grant giving programme we can help local partners to deliver projects which have a demonstrable social impact in their communities. We are also able to help local partners to be better placed to deliver transformational economic projects, through accessing inward investment and match funding from other strategic sources.

Funding decisions will consider local economic strength, dependency on an NDA site and other external factors as explained in our detailed guidance.

Based upon the detailed analysis of the independently produced economic impact studies, North West Wales, Caithness and North Sutherland and West Cumbria constitute clear priority areas for our social impact work, however, we will continue to make funding available for projects across the whole estate.

Our social impact budgets are administered by our operating companies, except for the NDA budget which is centrally retained. Our annual social impact budget is typically distributed as follows:

• Sellafield – minimum £10,000,000

• Nuclear Waste Services (LLW Repository socio-economic fund) - £85,000

• Nuclear Restoration Services - Sites Delivery Business - £1,020,000 (across 12 sites)

• Nuclear Restoration Services - Dounreay Delivery Business - £560,000

• NDA - £2,500,000

The NDA centrally retained budget (£2.5m) can be used flexibly to support projects across the estate. Our stakeholders have told us that they benefit significantly from revenue funding for feasibility, study work and project development. This recognises that the ability of partners to secure third party capital funding for project delivery is often conditional on a scheme being sufficiently developed so as to be deliverable in short timescales. For this purpose, we will allocate a portion of the annual NDA budget for our local partners to develop projects and business cases to a deliverable stage. This will be available to all areas regardless of priority status but will be subject to normal governance and assessment.

Other allocations from the NDA centrally retained budget will generally be used to support projects in our priority areas, recognising their status as focus areas requiring additional support.

West Cumberland – Sellafield and NWS LLW Repository Site

Sellafield in West Cumberland is the largest site in the NDA estate supporting an estimated 38,990 jobs across the UK workforce. In West Cumberland, Sellafield and Nuclear Waste Services (LLW Repository Site) combined support 28% of local jobs.

West cumberland funding infographic - Source: The economic contribution of the NDA to the West Cumbria economy – Oxford Economics (April 2022)

Local grant funding will continue to be managed through the Sellafield Social Impact Multiplied (SiX) Programme and the Nuclear Waste Services Low Level Waste Repository Socio-Economic Programme.

In addition the NDA will continue to support the delivery of the Industrial Solutions Hub in Cleator Moor, aimed at creating an estimated 700 jobs. Other transformational third-party investment has been enabled through ongoing match funding provided by the NDA to the Cleator Moor Town Deal and Millom Town Deal, both of which will deliver community health and wellbeing programmes.

Following local government reorganisation, Cumberland Council has indicated an aspiration to develop a local economic strategy for Cumberland. We will work in partnership with the new Council on future initiatives including supporting the development of the economic strategy.

Outside of this strategy, NDA group will continue to provide funding to the Copeland Community Fund which supports community projects in the areas close to the Low-Level Waste Repository.

Nuclear Restoration Services - Dounreay Delivery Business

Dounreay is the second largest NDA site by spend and a sizeable local employer in Caithness in Northern Scotland. Around 11% of the local jobs in Caithness and Sutherland are dependent on Dounreay and its supply chain. Dounreay remains vitally important to the local economy.

NRS Dounreay Delivery Business infographic - Source: Dounreay socio-economic report – Mace (September 2022)

The NDA’s strategy for the area is to contribute to maintaining and developing skills, contribute to the economic and social infrastructure, and support the diversification of local economies into other sectors. We will progress our economic aims principally through continued support for Focus North in delivering their priority themes and opportunities.

The aim of Focus North is to support the creation of new employment opportunities in the area. The partnership brings together NDA, NRS Dounreay, The Highland Council, Caithness Chamber of Commerce, Scottish Government, Highlands and Islands Enterprise, Skills Development Scotland and UHI. Focus North partners have indicated a desire to develop a new economic development plan for the area based on an updated Highland Council Caithness and Sutherland Local Development Plan (CaSPlan). The NDA has and will continue to provide funding for Focus North Programme and Project Support.

In addition to our continued commitment to Focus North activities, the NDA supports investments in new infrastructure, including Scrabster Harbour for cruise tourism development and offshore wind support, and for the development of a ground-breaking vertical satellite launch site, the Sutherland Spaceport, with the intention of attracting alternative sources of inward investment and employment to the area. This is also expected to create a clustering effect attracting many further space-related business opportunities.

NDA has supported the Caithness and North Sutherland Fund and the North Highland Regeneration Fund, both of which continue to provide support to local projects.

Nuclear Restoration Services - Sites Delivery Business

The NRS Sites Delivery Business is comprised of 12 former nuclear power stations in varying stages of decommissioning. A comprehensive decommissioning strategy for the NRS estate is currently being developed.

The 2022 study into the economic impacts of the 12 sites found that they currently make quantifiable, but varying, contributions to their local economies.

NRS Sites Delivery Business infographic - Source: Economic impact assessment of Magnox sites – Economic Insight (May 2022)

Hunterston A

Hunterston ‘A’ is located near West Kilbride in North Ayrshire on the west coast of Scotland. The station is adjacent to Hunterston ‘B’ nuclear power station which is an Advanced Gas-cooled Reactor (AGR) site owned by EDF. The B station will transfer to NDA for decommissioning following defueling and regulatory approval.

NDA and NRS have supported a range of community and economic development projects in the area. These include significant investment in the development of a new future skills hub at North Ayrshire College, in partnership with a number of other local and national organisations.

NDA and NRS will continue to work with local partners including North Ayrshire Council to support, amongst others, their developments under the framework of the Ayrshire Growth Deal. NDA recognises the priorities for North Ayrshire set out in the Ayrshire Regional Economic Strategy and Delivery Plan.

Chapelcross

Chapelcross is located in the south of Dumfries and Galloway, near the towns of Annan and Gretna. Dumfries and Galloway is a very agricultural area, with 28% of its business involved in agriculture, forestry and fishing.

The primary focus of NDA’s continued support has been the ‘Beyond Chapelcross’ CX project, which is working towards the future development of the Chapelcross site into a regional employment centre focussed around green energy and net zero industry, sustainable agriculture and food, clean mobility and logistics, education, skills and training for the just transition and digital connectivity and data services.

NDA funding has helped the CX Board to secure Borderlands Inclusive Growth Deal funding for the further development of this CX vision. 

NDA and NRS will also continue to work with partners including Dumfries and Galloway Council, Scottish Enterprise and South of Scotland Enterprise to support the identification of other opportunities for the land at Chapelcross.

Wylfa

Wylfa sits in a relatively isolated location on the Isle of Anglesey in North West Wales. Its priority status in this strategy reflects the low-economic strength of the area combined with a recognised high dependency on the NRS site. This dependency has been further emphasised by the closure of several major employers on the island in recent years.

The area has many strengths, including a vibrant and attractive tourism offer and a strategic focus on green energy promoted by the Isle of Anglesey County Council (IOACC) and other impressive strategic partners including Menter Môn and Menai Science Park (M-SParc).

Significant NDA group investment has been made in the communities around Wylfa including support for the Council’s Energy Island Programme, funding to Menter Môn for its programme of economic development projects across the island, investment in the skills & fabrication centre at Grŵp Llandrillo Menai’s Coleg Menai campus and support for M-SParc’s Egni Programme.

NDA and NRS have ongoing multi-year commitments to support the Morlais tidal energy project and the ‘Vibrant Communities’ programme both being delivered by Menter Môn, and the IOACC’s North Anglesey Economic Regeneration Plan.

Further aspirations are underpinned by the North Anglesey Regeneration Plan, which has been developed in partnership between IOACC and NDA, and the Council’s new Council Plan and Destination Management Plan.

Trawsfynydd

Located in Gwynedd, North Wales, the area around Trawsfynydd is also identified as a priority area for our social impact work. Decommissioning at the site is advanced and this is reflected in low employment numbers when compared to its previous peak workforce. Trawsfynydd is a ‘lead and learn’ site, meaning experience of decommissioning the site will be used to inform strategies elsewhere in the estate.

Cwmni Egino has been set up by Welsh Government to progress potential new projects and economic opportunities for the area around Trawsfynydd, including potential for new nuclear development. Whilst NDA does not have a role in delivery of new nuclear capability in the UK we will continue to work with Cwmni Egino to help ensure any opportunities can be of maximum benefit to the local community.

NDA has supported economic and community development in the area including funding to Gwynedd Council to deliver the Trawsfynydd Transition Programme and the Gwynedd Covid Response Programme. Other notable investment includes the Arloesi Gwynedd Project delivered by Menter Môn and The Outdoor Partnership which continues to provide ground-breaking support to enhance lives and create employment opportunities for local people through healthy outdoor pursuits.

Ambitions for economic development are set out in the ‘Prosperous Gwynedd’ section of Gwynedd’s recently developed Council Plan. The Council is also in the early stages of developing a new economic strategy for the area and we look forward to working with the Council on the development of this important strategy.

Winfrith

The Winfrith site ceased operation in 1995. Since then, under the NDA Strategic Land Management Project Board, some land at Winfrith has already been released for alternative use, including the Dorset Innovation Park, which has helped retain employment in the area.

The Dorset Council Plan, refreshed in 2022, sets out strategic priorities and a long term vision for the area.

The focus of recent socio-economic support in the area has been grant allocations for local projects including Dorset Wildlife Trust’s Heathland Heritage Traineeship, Lulworth and Winfrith Primary School and Lulworth Estate Durdle Door Environmental Campaign.

Funding has been committed for the Tumbledown Community Farm near Weymouth which will provide community led growing, learning and wellbeing opportunities. NDA will continue to work with the Council and other organisations to explore further suitable projects.

Harwell

Harwell was established in 1946 as Britain’s first Atomic Energy Research Establishment. The site accommodated five research reactors of various types, as well as a number of other nuclear research facilities, together with plutonium handling provision, radioactive laboratories, nuclear waste treatment and storage facilities.

Unusually for the NDA, we do not own the land we are decommissioning at Harwell. In this particular case it is owned by the UK Atomic Energy Authority (UKAEA). Release of some of this land has enabled the development of the Harwell Campus - Europe’s largest collection of open access scientific facilities, employing over 6,000 people and home to around 250 public and private sector organisations. Land at Harwell has potential to assist the further development of this important economic asset.

South Oxfordshire and Vale of White Horse District Councils are working together to develop a joint Economic Plan which will help to identify future strategies and priorities for economic growth and development in the area, including the delivery of the Didcot Garden Town which aims to bring 15,000 new homes and 20,000 new jobs to the area.

The 2022 Economic Impact study found that the economy around Harwell is stronger and less dependent on the site than many other NRS areas. However we do recognise that all areas have challenges, and this is reflected through recent multi-year NDA and NRS investment in the South Oxfordshire Food and Education Alliance (SOFEA) project.

Dungeness A

The Dungeness A and B stations lie within the Romney Marsh and are situated within the Folkestone and Hythe District in Kent. Dungeness A is a NRS site which is being decommissioned, whilst Dungeness B (an AGR site) is currently managed by EDF. The B station will ultimately transfer to NDA for decommissioning following defueling and regulatory approval.

The Romney Marsh Partnership (RMP) is a multi-stakeholder collaboration of local government, private sector partners and community organisations coming together to support local economic development in the area. The RMP was established in 2012 to help mitigate the economic impacts of nuclear decommissioning by diversifying and strengthening the Romney Marsh economy.

NDA and NRS have and continue to support the work of the RMP, including providing funding toward an RMP Coordinator post/Senior Specialist. An updated RMP Delivery Plan is currently being produced which will further help to guide future work in this area.

There has also been significant NDA investment in local projects including the Romney Marsh Business Hub which was officially opened in 2021. Ongoing projects benefitting from NDA investment include the Romney Marsh Coastal Destinations project which is due to commence construction in 2024.

Bradwell

Bradwell was one of two sites selected for accelerated decommissioning in 2009 and was the first UK nuclear site to reach care and maintenance in 2018. Bradwell now has the lowest employment of all NDA sites as a result of the advanced stage of decommissioning. Learning from Bradwell continues to inform future decommissioning strategies across the estate.

NRS funding has previously supported the development of a Socio-Economic Action plan for the area and the employment of a Sense of Place Coordinator.

The pull of the London economy and other large construction projects presents a challenge to local communities in this area. Maldon district is a priority level 1 area for Levelling-up. Priorities for local partners are set out in the Maldon District Corporate Plan 2023-2027 and include delivering the UK Shared Prosperity Investment Plan and securing the Rural England Prosperity Funding (REPF). For the latter, we are supporting Maldon District Council and the Rural Community Council of Essex to deliver the ‘Strengthen and Improve Productivity in Rural Economies and Communities’ programme in the Maldon district.

Sizewell

The area around Sizewell in Suffolk is another which experiences the pull of the London economy. It is a large geographical area with pockets of both affluence and rural deprivation. Major industrial developments including the proposed Sizewell C new nuclear power station and ‘Freeport East’ at Felixstowe present significant economic opportunities and challenges.

The East Suffolk Economic Strategy provides a vision and underpinning for economic development priorities in the area and the NDA commits to working with the local Council to consider opportunities aligned to this.

NDA and NRS have provided support over recent years for a number of projects in local communities including the Saxmundham Art Station and the Leiston Long Shop Museum. The latter included a 3-year funding allocation for a community programme. Presently NRS is providing multi-year funding towards work placements, internships and a new Local Cultural Education Partnership Coordinator role at Saxmundham Art Station.

Berkeley and Oldbury

Berkeley and Oldbury are located in Gloucestershire close to the mouth of the River Severn and the Bristol Channel. The economies around these sites are considered stronger than many in the NDA estate and dependency is relatively low.

The Western Gateway ‘Severn Edge’ initiative has been set up with Oldbury and Berkeley at its heart and aims to bring clean energy production to the area. The Vision for Severn Edge sets this area at the forefront of a green energy revolution that delivers an affordable zero carbon future for all, while levelling up and boosting education, training, skills and supply chain opportunities for all our communities.

Over the past five years NRS has supported Envision on their successful Junior Community Apprenticeship Programme which sees five businesses, including NRS, work with five schools to mentor young people to help them develop skills to become active citizens in their communities as well as financially supporting the project.

Hinkley Point A

Hinkley Point A is located in Somerset and is a NRS site currently being decommissioned. Adjacent to the ‘A’ station is Hinkley Point B which is managed by EDF. The ‘B’ station will ultimately transfer to NDA for decommissioning following defueling and regulatory approval.

Additionally, Hinkley Point C is the first of the UK’s Nuclear New Build sites to be developed. This project, led by EDF, brings unprecedented inward investment into the area with significant job creation and associated economic opportunity.

In recent years both NDA and NRS have supported the development of the East Quay at Watchet to safeguard and create job opportunities and new businesses as well as address a number of community needs in the town.

The NRS Socio-Economic fund continues to support the Somerset Education Business Partnership’s (SEBP) aim to connect local employers with education providers to help young people access career opportunities.

Somerset Council came into being in April 2023 following local government reorganisation. The NDA commits to working with the new Council to understand economic opportunities, challenges and priorities.