Corporate report

Economic benefits of the UK Defence Nuclear Enterprise: 2024 - Executive Summary

Published 18 June 2025

The UK’s Defence Nuclear Enterprise (DNE) is a National Endeavour that is critical to our national security and economic prosperity. By securing the country from existential threats and deterring extreme acts of aggression, the peace and security it ensures boosts productivity and prosperity. In addition, the work of our DNE provides significant additional benefits to the UK economy through regional development and investment in areas where its key sites are based, and through an industry supply chain which spans the entire UK.

Working on some of the most innovative, complex and technologically advanced programmes government has ever undertaken, defence nuclear highlights the prowess of British industry, science and engineering. This includes submarine construction at BAE Systems in Barrow-in-Furness, submarine maintenance at Babcock International in Plymouth, nuclear reactor development at Rolls-Royce in Derby, forging steel components for nuclear submarines at Sheffield Forgemasters and warhead design and manufacture at AWE Nuclear Security Technologies (AWE) in Berkshire.  

To further understand the economic impact of defence nuclear, the DNE commissioned a survey of these 5 main UK defence nuclear industry organisations in Autumn 2024. This data has been analysed by Defence Statistics, and the key findings from this analysis are presented in this executive summary. The full report will be published in due course.

Peace and security

This is the most significant, and primary economic value of the UK’s DNE and the defence nuclear sector. The sustainment of UK peace and security requires the deterrence of extreme acts of external aggression. This is the essential under-pinning which enables the economy to grow. Geo-political threats are rising and there will be no lasting economic growth without peace.

Alleviating regional inequality

Regional spread

The defence nuclear industry directly employs people in every region of Great Britain. The DNE currently supporting an estimated 47,600 jobs across the UK with an anticipated workforce demand of around 65,000 by 2030. The main industry prime companies have significant clusters of employees living in the North West (around 11,000) and the South West (over 5,000). The defence nuclear supply chain extends to every UK region.

Wage Premium

On average, the defence nuclear organisations pay a wage premium of about 20% above the national average wage. This reflects the often highly specialist and in-demand nature of the work. It suggests that the defence nuclear industry is boosting the local economies that host its workers.

Relative deprivation

Just over 50% of employees working for the defence nuclear organisations covered by this study live in areas of relative deprivation above the national average. By being present in these areas, the UK defence nuclear industry is helping to support the spreading of growth and opportunity across the UK.

Training and development

Apprenticeship provision has risen in recent years in the surveyed organisations. There has been a 50% increase in the number of new apprenticeship starts since 2020. The total was approximately 1,200 in 2023. This training helps to improve human-capital, productivity, and national economic growth. We estimate that the resulting lifetime increase in earnings for all apprenticeship starts between 2020 and 2023 can be currently valued at over £350m, compared to what the individuals would have earned over their lifetimes had they not received any alternative training.

In addition, government and industry have announced the National Nuclear Strategic Plan for Skills, a series of initiatives to expand apprenticeship and other training and development programmes. This aims to double apprenticeship and graduate intakes, which would create 22,000 defence nuclear apprenticeships and 9,000 defence nuclear graduate roles over the next decade.