Corporate report

UKAEA: public body review outcome

Published 20 October 2023

1. Background of the UKAEA

The UK Atomic Energy Authority (UKAEA) is a non-departmental public body (NDPB) responsible for the delivery of the UK government’s fusion energy programmes. Its mission is to lead the delivery of sustainable fusion energy and maximise the scientific and economic benefit for the UK.

The UKAEA is also a Public Sector Research Establishment (PSRE), carrying out research to support the development of fusion energy.

2. Purpose of the review

The review aimed to ensure that the UKAEA is:

• delivering with a clear purpose, which remains relevant, and that the organisation is appropriately classified
• on track to be effective, efficient and aligned to the government’s priorities
• well governed and properly accountable for what it delivers
• assessed against the PSRE Value Framework to consider the organisation’s performance and value for science and technology

3. Recommendations and conclusions

A stage 1 review concluded that the UKAEA is in good health. It carries out an important function on behalf of government, delivering the UK’s fusion strategy. Evidence was consistent that the UKAEA has effective leadership and mechanisms in place to ensure a high standard of governance and accountability. This is also supported by a strong policy sponsor relationship.

The UKAEA completed an assessment against the PSRE Value Framework, and this was evaluated by the DESNZ Chief Scientific Adviser (CSA). The CSA confirmed that the UKAEA met the requirements of this assessment.

On the basis of the evidence provided, as well as quality assurance carried out by the review team, this stage 1 review did not indicate a need for a follow-up full-scale review of the UKAEA at this time.

A total of 12 recommendations were identified across the review scope areas of efficacy, efficiency, governance and accountability.

3.1 Efficacy

1. It is recommended that both the UKAEA’s leadership and the policy sponsor team ensures there is an appropriate long-term strategic plan for maintaining the UKAEA’s core Research and Development (R&D) purpose as the commercialised fusion industry grows.

2. It is recommended that improvement work to standardise and simplify performance reporting, including the development of clear and understandable public-facing measures, is prioritised within the next 6 months. This is to allow the measures to be included in the 2024 to 2025 UKAEA Annual Report.

3. It is recommended that both the UKAEA and the policy sponsor team engage with the department’s central Monitoring and Evaluation Team to agree feasible next steps to develop an improved evidence base that captures and demonstrates interim benefits of fusion programmes. They should also consider the appropriate level of analytical resource and skills across the UKAEA’s programmes, including economic appraisal/impact, research, data management, and monitoring and evaluation.

4. Whilst it is right that the UKAEA is sponsored by the Department for Energy Security and Net Zero given the fusion energy focus, it is important to maintain close links with the Department for Science Innovation and Technology (DSIT) given the wider R&D agenda and funding structures. The policy sponsor team should scope what formalised arrangements and/or mechanisms should be put in place to achieve this.

3.2 Efficiency

5. Further to Recommendation 3, it is recommended that the UKAEA considers how to centrally capture the organisation-wide continuous improvement and efficiency activity that takes place. This will add value by enabling the leadership team to demonstrate the value of improvement work.

1. 6. It is recommended that the UKAEA’s involvement in the Joint Partnership which runs the Harwell Campus is evaluated:
   1. 1) in respect of senior resource utilised; and
   2. 2) in terms of alignment with the organisation’s core mission(s)

7. It is recommended that the UKAEA policy sponsor team liaises with the Cabinet Office to ascertain the most effective and proportionate way to engage and gain the most benefit from efficiency benchmarking tools that are currently being developed.

8. It is recommended that the UKAEA measures and reports prevented fraud to demonstrate evidence of counter-fraud effectiveness within the organisation. Should this continue to result in nil returns, the UKAEA should further liaise with the DESNZ counter-fraud teams and/or the Public Sector Fraud Authority to ensure these measures are adequate.

3.3 Governance

9. A Board Effectiveness Review should be undertaken within 6 months of the new UKAEA Chair taking up post, utilising the Cabinet Office guidance on principles, process and best practice.

10. As per the regular cycle and HM Treasury requirements, the UKAEA Framework Document should be updated, ensuring relevant reference to UK Industrial Fusion Solutions (UKIFS Ltd) and its relationship with UKAEA.

11. The 5-year succession plan for the UKAEA Board, which is currently under development, should be prioritised by the UKAEA and the policy sponsor team.

3.4 Accountability

12. To support a unified sense of purpose, and efficient and effective delivery of outcomes, the policy sponsor team should ensure that priorities for the UKAEA are set out in an annual chair’s letter issued by the responsible minister (or Principal Accounting Officer if delegated), in line with the Cabinet Office Sponsorship Code of Good Practice.