Independent review of the Nuclear Decommissioning Authority (NDA): terms of reference
Published 26 January 2026
© Crown copyright 2026
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/nuclear-decommissioning-authority-2026-review/independent-review-of-the-nuclear-decommissioning-authority-nda-terms-of-reference
Background
The Nuclear Decommissioning Authority (NDA) is responsible for the safe and secure decommissioning and clean-up of the UK’s civil nuclear legacy. This review presents an opportunity to address concerns and provide re-assurance to HMG on the NDA’s performance, additionally the last formal review was in 2021. Given the significance and complexity of the NDA’s task, it is essential to ensure that the NDA operates effectively and efficiently, delivering value for money to the taxpayer, while also maintaining standards of openness and transparency. Further, as part of the Spending Review (SR) Phase 1 Settlement for 2025/26, His Majesty’s Treasury (HMT) set a condition for a review of the NDA.
A review therefore provides an opportunity to ensure effective delivery and value for money at the NDA, and to meet the HMT condition. It also presents an opportunity for the NDA to demonstrate the need for certain freedoms to support delivery, such as a longer-term funding settlement, in line with the recommendations from the National Audit Office.
Objectives
An independent lead will be appointed to conduct the review. The primary objective is to conduct a thorough assessment of the NDA’s strategic planning, management, project and programme delivery, and financial management. The review should identify key areas of good practice but also provide recommendations on areas of improvement. This review should be ambitious and aims to drive impactful change by identifying strengths, weaknesses, and areas for significant improvement. The review will challenge existing practices and propose bold recommendations to enhance the NDA’s performance and effectiveness. We seek to ensure that the NDA not only meets current expectations but also sets a new benchmark for excellence in delivering value for money to the taxpayer.
Overall, the Review will aim to achieve the following outcomes:
a. Address concerns and provide reassurance to DESNZ and HMT (while also recognising Scottish Minister’s formal role in NDA Governance) about the performance, governance and financial controls within the NDA.
b. Challenge existing practices and propose bold recommendations to enhance the NDA’s performance and effectiveness, setting a new benchmark for excellence in delivering value for money to the taxpayer.
c. Identify areas of good practice in addition to making recommendations for improvement.
Scope
The review will focus on the following key areas:
Strategic Planning and Management:
a. NDA’s strategic objectives, how they align with government policy, and how they take account of the NDA’s long-term mission. This should take account of requirements within the Energy Act 2004.
b. The effectiveness of NDA management structure and decision-making processes, especially in light of any changes made by the new Chair. The reviewer is not expected to conduct a thorough evaluation of management structures in the Operating Companies, but may examine particular areas where they identify specific concerns or opportunities.
c. Risk management and mitigation strategies.
d. Given the above, any implications for how HMG governs and provides oversight of the NDA
Project and Programme Delivery:
a. The efficiency / effectiveness of project / programme management.
b. The level of functional capability and capacity provided in support of major project delivery.
c. The approach to project prioritisation and resource allocation across the NDA Group and between Operating Companies.
d. Monitoring and evaluation of project outcomes.
Financial Management:
a. The effectiveness of financial planning, budgeting and forecasting processes.
b. Effectiveness of financial controls and audit processes.
c. Transparency and accountability of financial reporting.
d. Assessing the case for longer term budget settlements and evaluate the current and long-term Value for Money assessment (in line with the recent Public Accounts Committee recommendation).
e. Assessing the current organisational pay structures and their effect on NDA recruitment and retention, organisational mobility, and industrial relations and delivery performance. This will include assessing the case for a full exemption from the Civil Service Pay Remit for applicable Operating Companies, as well as an assessment of NDA (and subsidiary) management pay, specifically identifying improvements to strengthen accountability and better align senior pay with programme success.
Methodology
The review will be conducted in line with the principles of the Public Bodies Review Programme and will be delivered through:
a. Document analysis of strategic plans, financial reports, and project documentation.
b. Review of key case studies, such as specific projects or site management plans.
c. Interviews with key stakeholders, including NDA management (including operating companies) government officials, and industry experts.
d. Site visits to key decommissioning sites.
e. Comparative analysis with similar organisations inside or external to the nuclear sector.
f. Reviewing the findings of previous reviews and assuring the effective implementation of past recommendations.
Deliverables
The review will result in a comprehensive report for Ministers prepared by the independent reviewer. The report will include:
a. An executive summary of findings and recommendations.
b. Detailed analysis of each key area.
c. Actionable recommendations for improvement.
The report will be shared with Ministers and decisions on publication will be taken at a later date.
Timeline
The review will commence in January 2026 and is expected to last around 9 months.
A detailed plan for the review will be drawn up by the lead reviewer when appointed.
Governance
The review will be overseen by an independent lead reviewer with support from additional external expert reviewers as necessary. They will be selected for their expertise in the nuclear sector, strategic management, complex project management, previous senior leadership roles, and experience of engagement with HMG. The review will be supported by the NDA Review Contact Group comprising representatives from across government (such as DESNZ, HMT, NISTA and others as appropriate). Regular progress updates will be provided to ensure alignment with objectives and timelines.
Resources
The independent reviewer will lead the review team, which will consist of civil servants with a range of capabilities and expertise from across DESNZ and wider government. The review panel can call on additional expertise to support the delivery of the review, if needed.