Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reason employees at Sellafield Ltd are treated as being in the private sector for pension purposes and are regarded as being in the public sector for the purposes of a cap on exit payments.

The Government has legislated for a cap on public sector exit payments via the Enterprise Act 2016, as promised in the manifesto. The cap will apply to public sector organisations in line with the Office of National Statistics (ONS) classifications; Sellafield Limited is classified as part of the public sector by the ONS. Sellafield Limited receives the majority of its funding from the Exchequer; it is therefore important to ensure that any exit payments are fair, proportionate and represent value for money for the taxpayer.

The specific pension arrangements for Sellafield Limited employees are a matter for Sellafield Limited and the Nuclear Decommissioning Authority. Government policy on public service pension schemes, as set out in Public Service Pensions: Good Pensions that Last (2011), is to move away from final-salary based schemes. The Government is therefore considering how best to apply public service pension reform policy to the Nuclear Decommissioning Authority estate whilst being mindful of the particular circumstances of the workforce, in particular at Sellafield Limited.