(Go: >> BACK << -|- >> HOME <<)

Staff at nuclear decommissioning quango paid £5m in bonuses

Chairman Stephen Henwood admits to 'shortcomings' in bonus structure as rewards increase by a third

sizewell nuclear power stations
Sizewell A (left) and Sizewell B nuclear power stations, in Suffolk. The Sizewell A Magnox reactor is being decommissioned by quango NDA, which has awarded staff £5m in bonuses, despite facing a £4m budget deficit. Photograph: Graham Turner for the Guardian

Bonuses at taxpayer-funded quango the Nuclear Decommissioning Authority rose by almost a third last year even though it faces a £4bn budget shortfall by 2015.

Staff were awarded £5m, according to an answer to a Freedom of Information request tabled by the Guardian, compared with just under £3.8m the previous year. The NDA, which employs about 300 people, will publish its annual report by the end of the month when it will outline how much it paid to directors for the last financial year. The TaxPayers' Alliance said that the pay-outs would be hard to justify at a time of public sector spending cuts.

The NDA's chairman Stephen Henwood recently admitted there were "shortcomings" in the way the bonus scheme worked, and it has since been tightened up. He has also promised to cut a third of its staff and its £800m annual running costs by a fifth within three years. Staff costs went up by over 40% in two years, according to the NDA's most recent published annual reports.

A spokesman for the NDA said that senior managers received between £15,000 and £20,000 in bonuses last year and that the average bonus was about £12,000. According to its annual report, executive directors were awarded £65,000 each.

The NDA is responsible for decommissioning the UK's old reactors, estimated at costing £73bn. It is supposed to fund about half its annual clean-up budget through its commercial activities, such as operating the remaining Magnox reactors and reprocessing spent fuel. The rest is paid for by the taxpayer, via the energy department. But recently, lower income and higher decommissioning costs mean funding the NDA takes up two thirds of the energy department's annual budget.

During the year corresponding to last year's pay-outs – 2008/2009 – the NDA increased its income by over £500m largely as a result of higher electricity prices. It also said that it achieved £183m of efficiency savings. An NDA spokesman said: "In order to attract and retain the calibre of people necessary to deliver the NDA's required performance, NDA staff have the contractual opportunity to achieve an annual bonus dependent on the achievement of strict performance targets."

But Matthew Sinclair of the TaxPayers' Alliance, said: "Taxpayers will struggle to understand why ... a multi-million pound bonus pot is necessary ... when there is so much pressure to cut spending in order to address the fiscal crisis. At the same time, using cash bonuses to this extent, at an organisation that has such a long term objective, could clearly create the wrong incentives for staff and lead to the pursuit of short term efficiencies at a greater long term cost.  The NDA needs to review how it rewards staff and do more to deliver value for taxpayers' money."


Your IP address will be logged

Comments in chronological order

Post a comment
  • This symbol indicates that that person is The Guardian's staffStaff
  • This symbol indicates that that person is a contributorContributor
  • HaimonaKokirri HaimonaKokirri

    16 Jul 2010, 9:54PM

    Another bonus system acknowledged defective by those benefiting from it.

    They take the money without the need to run.

    It's a gravy train for them.

    And they're shameless about it.

  • SMOGBAD SMOGBAD

    17 Jul 2010, 9:54AM

    Pay is one thing,but this bunch of jokers idea of decommissioning includes really dodgy Cumbrian landfill with potentially contaminated watercourses and, I fear, a dangerous incineration policy. Bonuses seem to be about convenient minimisation, denial and choosing and supporting the wrong model of public nuclear risk. Ingestion and inhalation of alpha emitters is left out, and there are increasing findings of a total mismatch between predictions and real world illnesses and deaths of the order of X 1,000. Of course you would get a bonus from the nuclear builders if you hid trhat problem !!!

  • oldbrew oldbrew

    17 Jul 2010, 11:02AM

    Photo caption says: despite facing a £4m budget deficit

    First sentence of article says: it faces a £4bn budget shortfall by 2015.

    Is this a nuclear cost explosion?

  • texaspete82 texaspete82

    17 Jul 2010, 11:04AM

    Why not privatise this function and pay a private company 3 times as much taxpayers money to do it?

    Then the pay of directors is none of our business (and private business is definitionally efficient and pays its staff what they deserve), staff can get bigger bonuses and formalhaut will feel happier about the situation.

    After all, the banking industry has operated off a massive public subsidy over the last decade and, as I seem to remember, formalhaut believes that bankers bonuses is none of the Government's business.

  • Wyndley1857 Wyndley1857

    17 Jul 2010, 12:50PM

    Not going to happen, texaspete82 , however much politicians bleat about no subsidies, nuclear is an integral part of the corporate state.

    Last month The Guardian revealed EDF's lobbying for subsidies:

    http://www.guardian.co.uk/business/2010/jun/02/edf-nuclear-waste-lobbying

    Recall who went to work for EDF when he resigned from the MoD:

    http://www.guardian.co.uk/environment/2009/sep/14/edf-john-hutton-nuclear

  • Globalnomad73 Globalnomad73

    17 Jul 2010, 4:01PM

    And we're being told that a new set of nuclear power stations will be cheaper than going for truly renewable & sustainable energy sources such as wind, solar, tidal etc?! And why when the Government gives a tiny tax break/ support to sustainable energy investment we're all up in arms, but not even blink when 73BILLION (and rising) is spent on nuclear waste cleanup or significant tax breaks for oil/ gas.... My 2p. In peace, Rianne

  • Earllavender Earllavender

    17 Jul 2010, 7:03PM

    Time for bonuses to be removed from Public Offices. Bonus for what?. It is bad enough in real businesses where Directors lavish money on themselves without improving sales but at least the Shareholders supposedly have the power to remove these benefits. Civil Servants are a law unto themselves and with money tight Mr Osborne should strike and strike hard. Labour allowed all this bonus culture to grow throughout government.

  • KeithClan KeithClan

    18 Jul 2010, 8:02AM

    I worked in the Public Sector for years and neither I nor my colleagues ever got nor expected a bonus. We were paid an agreed rate for the job which we accepted when we took the job on.
    Where did this bonus culture originate from and by whom? This grand larceny of the public purse needs to stopped right now. If they won't work without a bonus they can leave tomorrow - there are hundreds who'd apply for the job at basic pay.

In order to post a comment you need to be registered and signed in.

|

Comments

Sorry, commenting is not available at this time. Please try again later.

Our selection of best buys

Lender Initial rate
First Direct 2.99% More
ING Direct 2.89% More
First Direct 2.29% More
Name BT Rate BT Period
Barclaycard Platinum 0% 15 mths More
NatWest Platinum 0% 16 mths More
Royal Bank of Scotland Platinum 0% 16 mths More
Provider Typical APR
Sainsbury's Personal Loan 7.8% More
Provider AER
ING DIRECT 2.75% More
BIRMINGHAM MIDSHIRES 2.75% More
SAGA 2.75% More

Free P&P at the Guardian bookshop

Browse all jobs

jobs by Indeed