Nuclear Decommissioning Authority (Pension Scheme Amendment) Regulations 2024

Earl Russell Excerpts

Tuesday 13th February 2024 Grand Committee

However, I found my noble friend’s proposals entirely convincing and I think this is a very sensible SI.

[Earl Russell (LD)]

I thank the Minister for introducing these regulations. There is little information available other than the statutory instrument and the accompanying Explanatory Memorandum. I also note that this has not been picked up in any way by the Secondary Legislation Scrutiny Committee. I do not have many overriding concerns or objections, and I understand that it is likely to be the same for others speaking today. I will pick up the points that the noble Lord made, particularly in relation to the small numbers who have been excluded under paragraph 7.3.

These measures will bring NDA pensions into line with wider public sector pensions in a move from a final salary scheme to a career average scheme. The proposals have been agreed with the unions and include provisions for retirement on full pension before the state pension age. I welcome that.

As is customary, I will ask the Minister a few questions. Most of them relate to the same issue, namely that of timing—the cause of the timing and whether that delay has had any impact on the proposals being put forward today. I am just not certain, so I will ask questions around those issues.

As the noble Lord said, this was originally completed way back in 2017 and the consultation was published in May 2018. The Explanatory Memorandum blames a lack of parliamentary time for this almost seven-year delay in bringing this into law. Can it really be correct that it has taken a full six or seven years to find a few minutes of parliamentary time to carry these small changes forward? Maybe it is, but I seek clarification on that point.

Considering these proposals are now late, is there any impact as a result? The report says that the unions supported the proposals. Has their position changed since they were originally consulted? Has the Minister or his officials gone back to the unions to ask for an update on their position? Was the last time they were consulted back in 2017? I seek clarification on that, because it was not clear from the information provided.

The Explanatory Memorandum states that the proposals will save an estimated £200 million over the term of the scheme. Is that figure still correct following the delay? Is it the same amount? Has there been any loss of public funding from the delay in bringing these proposals forward? Are there any changes to the long-term savings?

Obviously, we are dealing with the Nuclear Decommissioning Authority. If any issues of people being exposed to radiation that were not known about came to light after these proposals came forward, would there be any changes in the pensions available to them as a result of the changes to the scheme?

Paragraph 10.3 of the Explanatory Memorandum mentions that most of the responses were against the proposals, but there is very little information. I understand that there were not many objections and that these were small numbers, but there was no information in the pack about the reasons for the objections. Could I ask for a sentence on that?

Paragraph 11.2 says that these proposals will impact 8,000 staff and that consultations will begin on 1 April. Is that still the same number? Has it changed over time?

I note the Government brought forward their civil nuclear road map last month, which involves a big expansion of our civil nuclear programme. Is the reason why this been delayed for seven or eight years and then rushed forward related—

[Lord Callanan (Con)]

No.

[Earl Russell (LD)]

No? Okay, that is fine. Finally, how will the Minister monitor the implementation of the changes? Will that be reported anywhere?

[Lord Lennie (Lab)]

My Lords, this instrument enacts the Nuclear Decommissioning Authority pension scheme, based on the review of public sector pension schemes by my noble friend Lord Hutton in 2011. This resulted in the Public Sector Pensions Act, which enabled the majority of public sector pensions to move from final salary to career average revalued earnings schemes. About 8,000 workers are affected as a result of this instrument. We have nothing to complain about on the scheme, but the process has raised a few questions, as the noble Lord, Lord Young, and the noble Earl, Lord Russell, have pointed out. I would like these to be addressed.

During the consultation, many respondents raised concerns that the proposed definitions and the application of the proposed powers were insufficiently clear or too broad. Many sought assurances that the powers would be restricted to implementing the reform agreed with their national trade unions. Furthermore, respondents requested either member or trade union and/or trustee engagement prior to the use of any of the powers. Could the Minister respond to those concerns?

The trustees of the CNPP and MEG-ESPS asked that they be given sufficient time to review the final rule amendments, indicating that about 12 months would have been appropriate. The response to the consultation says that, in the light of this specific request, as much notice as possible would be given to the trustees and members prior to implementation. We now know that the implementation date will be 1 April 2024. Can the Minister tell us when the Government notified the trustees of the changes? Did they deem this sufficient for their purposes of consultation and informing their members?

The noble Lord, Lord Young, raised a concern regarding the reform of the pensions for NDA employees who are covered by the Electricity (Protected Persons) (Scotland) Pension Regulations, which were not included in the public consultation. There are very few of them, as the noble Lord and the information provided say. How many are there? If a change is to be brought in for the persons in Scotland, presumably another full consultation will take place to precede any further regulations.

Finally, to repeat the question of the noble Lord, Lord Young, and the noble Earl, Lord Russell, the decision to introduce the scheme was taken on 28 December. There has been plenty of parliamentary time for this half-hour debate to take place, so could we have the actual reason why it was delayed so long?

Global Heating

Earl Russell Excerpts

Thursday 18th January 2024 Lords Chamber

[Earl Russell (LD)]

My Lords, I thank my noble friend Lady Sheehan for bringing this timely debate and all who have spoken. Earth is on the brink of surpassing the internationally agreed threshold for climate warming. The Paris Agreement’s long-term goal of keeping warming “well below” 2 degrees Celsius and aiming to limit it to 1.5 degrees is a global benchmark, conceived and internationally agreed to avoid the worst impacts of global temperature rise and to minimise risks. To my mind, the issue is clear. To the noble Lord, Lord Lilley, I say that every disaster movie starts with somebody questioning a scientist.

For the first time, 1.5 degrees of warming has been passed temporarily, and 2023 obliterated the record for the hottest year by a large margin. Earth was 1.48 degrees hotter. The average temperature was 0.17 degrees higher than in 2016. Half of all days were 1.5 degrees warmer. The last three months were 1.7 degrees warmer. Huge Canadian wildfires drove up yearly global carbon emissions by 30%. Sea surface temperatures rose alarmingly. We are outside the safe limits that humanity requires and the target for controlling global climate change is closing.

However, we must have hope, and a lot has changed. Other speakers have referred to that already. A decade ago, we were on target to hit 3.5 degrees by the end of the century. Due to the international action already taken, this has now reduced to a probable 2.4 degrees to 2.5 degrees. To keep global warming to no more than 1.5 degrees, current global emissions need to be reduced by 45% by 2030 and reach net zero by 2050, according to the UN.

Last year was a step change for the growth of renewables, with an extra 507 gigawatts of capacity produced globally. Last year, China alone added more solar power than the world added in 2022. Last year saw a 49% global increase on the previous year, and the International Energy Agency recognises that enough renewables to power the whole of America and Canada should be produced over the next five years.

I warmly welcome the Conservatives’ 2019 manifesto commitments to net zero by 2050. We need to work collectively on these issues. The time for arguing about the science is over. I also recognise the great work that the noble Baroness, Lady Jones, and others have done on this issue. It is important that we work together.

However, to my mind, the Conservatives stopped being world leaders last year. I find it strange that the Uxbridge parliamentary by-election was a tipping point in this country’s conversation on climate change. The PM decided to take a new course on climate change, now backing the motorist, feeling that we must “ease the burdens”. Commitments on phasing out petrol and diesel cars and gas boilers were diluted. The tone and the language changed, and the urgency was scaled back. Our commitments risk being collateral damage.

The pointless decision to extract new North Sea oil will do nothing to provide us with energy security and, as others have mentioned, damages our international reputation and standing. Chris Skidmore, who resigned over these matters, said:

“There’s been a pivot towards trying to create a culture war on the back of net-zero as somehow being a measure that is juxtaposed to energy security. It is completely false”.


As a direct result of that decision, our international reputation has suffered—built over years, destroyed in seconds. The public spectacle of our climate change Minister being flown back to support the Prime Minister did not help.

We need to set a clear example. We need to be a world leader. The Climate Change Committee did welcome the Government’s 2030 strategic framework, saying that overall it was commendable. But more must be done to support the ambitions with detailed further actions, as the noble Baroness, Lady Kingsmill, argued.

I ask the Government to stick to their own policies, to reduce the anti-green rhetoric and to continue to step up to the challenge. Given that the IPCC’s remaining global carbon budget for 1.5 degrees is not getting any bigger, perhaps the Minister might tell the House what additional measures His Majesty’s Government will now take to reduce emissions in line with the UK’s proportionate share of that crucial budget.

Civil Nuclear Road Map

Earl Russell Excerpts

Monday 15th January 2024 Lords Chamber

[Lord Lennie (Lab)]

My Lords, I thank the Minister for the Statement and wish him and his colleagues as happy a new year as possible, in the circumstances.

Nuclear energy is a key part of Britain’s future energy mix. We therefore support the Government’s commitment to new nuclear power. Nuclear power is a long-term project that requires cross-party consensus. I confirm that, as far as we are concerned, we have it. It is not new that we have a need for more homegrown, clean power in this country to cut energy bills and give us energy security, but the vulnerabilities of the current system have been deeply exposed by the energy bills crisis and the invasion of Ukraine, showing our reliance on external supply over the last two years.

Although this latest commitment is welcome, it is something of an irony that this road map emerged from Chris Skidmore’s independent review of net zero. Given the reason for his resignation being the lack of progress by the Government on energy and climate policy, particularly the Offshore Petroleum Licensing Bill, do the Government not find it counterproductive to be taking one step forward and one step back at the same time?

Given this history, one would understand the nuclear industry being at least sceptical of the commitments in the Government’s Statement. What concrete steps are the Government taking in the short term to give the industry the confidence to work alongside them to deliver what the road map offers?

Furthermore, it is disappointing that, over the past 13 years, progress has stalled under this Government. They came into power in 2010, with 10 new sites having been identified by the previous Labour Government, yet they still have not managed to complete one nuclear power station. Even this newly promised road map is coming two years later than promised. That is two extra years when people will not feel the benefits. However long it takes for bills to fall as a result of the Government’s long overdue realisation that we need to generate more clean electricity, it will be two years later than it could have been. None the less, do the Government have a timeline for when that will happen? What assessment have they made of the expected impact of bills in the longer terms?

While of course it is a road map for 2050, the report also sets out a number of steps to be taken in the next 12 months. One of these is publishing a nuclear skills task force report alongside a defence nuclear enterprise Command Paper. Regarding the former, can the Minister give us a preview by telling the House what steps are already being taken by the Government to ensure that the UK retains critical skills in our nuclear sector? These jobs are highly skilled, well-paid, unionised and an asset that should be protected and treasured right through the supply chain, from apprenticeships to nuclear physicists.

Another step in the next 12 months is to finally reach an investment decision on Sizewell C, before the end of this Parliament. That commitment is also welcome, but for Hinkley Point C there is less certainty. Will the Minister update us on the timeline for Hinkley Point C, which was originally promised to be delivered by 2017, seven years ago? When will it start supplying power to households?

Finally, also said to be happening in the next year is completing the Great British Nuclear-led SMR technology selection process, thus announcing which technologies will be supported to achieve final investment decisions by 2029. There is much frustration in the industry, where attempts to site SMRs face delays and blockages. What steps will the Government take to unblock this and widen the development of SMRs and other advanced technologies?

[Earl Russell (LD)]

My Lords, I thank the noble Lord, Lord Lennie, for his contribution. This road map is overdue but at least it is here. The question is: will timely financial investment and industry participation follow? The Liberal Democrats recognise that nuclear energy has always been part of our energy mix and will continue to be so as we transition away from fossil fuels.

The road map creates new risks and does little to provide energy security in the medium term. It sounds very glorious to meet one-quarter of our electricity demands by 2050, but will it deliver? It is a bit of a curate’s egg. On these Benches, we think that the Government are putting too many of our energy eggs in the “grand nuclear gigawatt energy infrastructure projects will always deliver” basket. Gigawatt nuclear energy projects have a long history of being announced with much fanfare, running into a blizzard of problems, becoming delayed, being delivered late and way over budget or not being delivered at all. The reality of nuclear projects in the UK is that Hinkley Point C is well over budget, now £33 billion, and late. Little progress has been made on Sizewell C, despite years of discussion and attempts to find ways to finance it.

The current proposed financing package charges already hard-pressed consumers up-front. Why will it be any different this time? This strategy requires the extension of four AGR nuclear power plants beyond their planned end of life and is subject to regulatory approval. When does the Minister expect the regulators to take these decisions? Mini reactors should be explored, but this should be as well as, not instead of, investing in renewable energy.

If planning and regulatory processes can be streamlined for nuclear, surely that can be done for offshore and onshore wind. We welcome the £300 million invested to free the UK from energy dependence on Russian advanced nuclear fuels. This is critical to our security. When does the Minister expect that the UK will be totally free from Russia? The Government must be able to give a true account of the costs of nuclear decommissioning.

The future is renewable. By 2030, technology improvements could slash today’s prices by one-quarter for a wind and half for solar. Other technologies, such as long-term storage, are also promising. The Liberal Democrats are committed to ensuring that 80% of the UK’s electricity is generated by renewables by 2030. The UK Government are aiming to decarbonise Great Britain’s electricity system fully by 2035, yet they have not provided a coherent strategy to achieve their goal. Investment in renewables and green technologies is essential. How do the Government plan to integrate the nuclear road map with their renewables ambitions? Given the scale of renewables that the Government are planning, inflexible nuclear base load systems are an ill fit. We need the flexibility provided by technologies such as interconnectors, storage and demand flexibility. Finally, when will we see a full and comprehensive integrated energy strategy to achieve net zero with a clear road map for renewables?

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

I thank the noble Lord, Lord Lennie, and the noble Earl, Lord Russell, for their introductions. On the comments from the noble Lord, Lennie, we of course welcome the support of the official Opposition. The noble Lord is right to say that these are essentially very long-term schemes. It is good to have a degree of cross-party consensus between the two main parties about the importance of nuclear to our future energy system and energy security.

I was not sure of the Lib Dem position. The noble Lord started off quite positively, saying that the Lib Dems welcome the role of nuclear, which of course is a change from their attitude during the nuclear financing Bill. I think I spotted in what the noble Lord was saying a hint of possible support, but we will have to wait for clarity on that. I also agree with his comments about renewables. It is not an either/or choice; we need to do both. We need to contribute to nuclear to support our baseload ambitions and, of course, continue our world-leading support for renewables and the future rollout of solar, offshore wind and all the other renewable technologies.

We have published three key documents which reinforce the UK’s position as a leader in the civil nuclear renaissance: first, a civil nuclear road map; secondly, a consultation on alternative routes to market; and, thirdly, a consultation on a proposed policy for siting new nuclear power stations. In response to the question from the noble Lord, Lord Lennie, this really does set us on a path towards deploying up to 24 gigawatts of nuclear power in Britain by 2050, as part of the cleaner, cheaper and more secure energy system of the future. The road map very much establishes our vision for a vibrant British nuclear sector, which includes exploring building a major new power station and investing in advanced nuclear fuel production. It includes key enablers such as skills regulation, financing and effectively managing our nuclear legacy, and it sets out our long-term ambition for nuclear, providing high-level timelines and key decision points for a wide range of nuclear technologies over the next decade.

Finally, in recognition of our enhanced nuclear ambitions and the exciting potential offered by these new technologies, we are launching a public consultation on the proposed siting of new nuclear stations to help attract investment into the UK nuclear sector, and empowering developers to find suitable sites to enable a wide range of potential communities to benefit.

The noble Earl, Lord Russell, asked about freeing us from Russian nuclear fuel. I can confirm that it is the ambition of the Government to make sure that we are completely free of any components of Russian nuclear fuel by 2030.

Limiting Global Temperature Increase

Earl Russell Excerpts

Wednesday 13th December 2023 Lords Chamber

[Lord Callanan (Con)]

My noble friend is right, in that different circumstances will apply to many countries, but we are very clear about the trajectory that we are on. We need to bear in mind that this is a transition. It cannot happen overnight, but we are clear on the direction in which we are travelling.

[Earl Russell (LD)]

My Lords, do the Government now regret their decision to recall our Climate Change Minister 6,831 miles to London, putting party before planet? As a nation, we were not adequately represented at the crucial point in these negotiations. Is it not the truth of the matter that the Conservatives have prioritised their own local difficulties over crucial negotiations to tackle the climate emergency?

[Lord Callanan (Con)]

I am sorry, my Lords, but that really is a nonsensical question. Graham Stuart is a Member of Parliament and has duties to perform in Parliament. The negotiating team were in constant contact with him, all the time. He flew back out to COP last night. Our own Minister, my noble friend Lord Benyon, was there as well, occupying the UK chair, alongside the fantastic team of negotiators, who held the pen for many of the negotiations and secured some far-reaching commitments in line with UK’s policy objectives.

Hydrogen Heating

Earl Russell Excerpts

Monday 11th December 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Lord will find out whether now is the right time to be pushing ahead with it when we announce the decision. He should not necessarily believe everything that he reads in the newspapers.

[Earl Russell (LD)]

My Lords, the Second National Infrastructure Assessment argues:

“Gas boilers, which currently heat around 88 per cent of English buildings, need to be phased out and replaced by heat pumps. Around eight million additional buildings will need to switch to low carbon heating by 2035, and all buildings by 2050”.


Can the Minister tell us how the Government plan to implement these recommendations and make carbon-neutral home heating available in time to meet our net-zero commitments?

[Lord Callanan (Con)]

There is a long and detailed answer to that, but there are a number of different elements to it. We will be consulting very shortly on the future homes standards, which will take advantage of new technology in terms of setting standards for all new developments. Clearly, there is a big challenge with existing, particularly residential, properties. I have said that heat pumps and heat networks will play the majority role in decarbonisation efforts. There could also be a role for renewable heating fuels, where there are some exciting developments.

Climate Change: Aims for COP 28

Earl Russell Excerpts

Tuesday 28th November 2023 Lords Chamber

[Lord Callanan (Con)]

The noble and right reverend Lord makes an important point. Agriculture is one of the most difficult areas to decarbonise. It is of course linked into a lot of the action that has been taken on nature. It is one of our priority areas and we will be doing what we can to progress agreement.

[Earl Russell (LD)]

My Lords, information uncovered this week by the Centre for Climate Reporting purports to show that the UAE is planning to use its role as the host of COP 28 as an opportunity to strike a new generation of oil and gas deals in Africa and Asia. Does the Minister agree that the oil sustainability programme is completely contrary to the letter and the spirit of the global climate talks? What action will the UK Government be taking in considering this new information?

[Lord Callanan (Con)]

Obviously, the reports that we saw in the last few days were concerning, but of course we are not aware of what was discussed in private meetings. The UAE presidency was not appointed by us, but we support it in what it has said publicly in terms of advocating for an ambitious deal.