Sizewell C nuclear power station gets £14.2bn boost as UK aims for clean energy future

The British government has formally committed an additional £14.2 billion to build the Sizewell C nuclear power plant in Suffolk, marking a historic turning point for the country’s civil nuclear programme. The funding announcement was made by Chancellor of the Exchequer Rachel Reeves on 10 June 2025 at the GMB Congress, positioning the project as a centrepiece of the UK’s post-pandemic energy and industrial policy. Sizewell C will now move into full construction, with expectations to employ over 10,000 people during peak activity and power approximately six million homes with zero-carbon electricity once operational.

This new round of funding brings total public investment in the project to £17.8 billion, following an earlier £3.6 billion injection through the UK Infrastructure Bank and direct government equity. The project is now fully financed through public capital, with private investors—including pension funds and infrastructure institutions—expected to join under the Regulated Asset Base (RAB) model.

Why the UK is investing in nuclear power in 2025

The renewed commitment to Sizewell C arrives amid a wider strategy shift in British energy policy. The UK is looking to move away from volatile global fossil fuel markets by building out domestically controlled sources of base-load electricity. Nuclear energy, long considered a stable but politically contentious option, is now being reframed as essential for delivering both energy security and the country’s net zero obligations.

Energy Secretary Ed Miliband referred to the programme as ushering in a “golden age” of clean, homegrown energy. He stated that new nuclear is “the only way to protect family finances, take back control of our energy, and tackle the climate crisis.” Chancellor Rachel Reeves echoed this sentiment, describing the investment as a key pillar of “Britain’s renewal” and the most ambitious nuclear building programme in over a generation.

Institutional analysts note that energy security has re-emerged as a top-tier investment thesis following global gas market instability in 2022–2023. Rating agencies and climate-focused funds alike are now closely monitoring Britain’s nuclear timeline, seeing Sizewell C as a bellwether for future nuclear pipeline viability—including small modular reactors (SMRs) and fusion projects.

What is Sizewell C and how will it impact the UK economy?

Sizewell C is a planned twin-reactor nuclear power station to be constructed on the Suffolk coast, adjacent to the existing Sizewell B facility. It will use the European Pressurised Reactor (EPR) design, a third-generation pressurised water reactor developed by Framatome and EDF. Each reactor at Sizewell C will deliver approximately 1.6 gigawatts (GW) of electrical output, bringing the station’s total capacity to 3.2 GW—enough to meet the electricity needs of six million homes, or roughly 7–8% of current UK demand.

The EPR design, also being deployed at Hinkley Point C in Somerset and already operational in Finland and China, features multiple redundant safety systems, a double-walled containment structure, and a digital instrumentation and control system. The plant is engineered for a 60-year operational lifespan, with passive safety functions intended to reduce the risk of human or system error. From a climate perspective, the plant is expected to displace more than 9 million tonnes of CO₂ annually compared to equivalent gas-fired generation.

Construction of Sizewell C will span approximately 10 to 12 years, with enabling works already underway and full-scale activity expected to ramp up following the project’s Final Investment Decision. During peak construction, it will create more than 10,000 direct jobs on site. In addition to direct employment, the programme will deliver 1,500 apprenticeships across engineering, nuclear safety, and operational support roles. Training programmes will be co-developed with technical colleges and union partners, with a focus on long-term upskilling in the UK’s civil nuclear workforce.

The economic ripple effects are equally significant. To date, £330 million in supply chain contracts have already been awarded to local businesses, including firms specialising in steel fabrication, plant equipment, civil works, and site logistics. According to official estimates, approximately 70% of all future contracts—worth several billion pounds—are expected to be awarded to around 3,500 British suppliers. This localisation strategy is expected to drive industrial growth far beyond Suffolk, impacting manufacturing bases in the Midlands, North West England, and North Wales.

Regional economies will also benefit from increased demand for construction materials, accommodation, food services, and transport logistics. These indirect impacts are expected to sustain tens of thousands of additional jobs throughout the 2030s. Local councils and development boards have already begun planning for infrastructure upgrades, housing expansion, and transport links to support the projected influx of workers.

Labour market analysts highlight that jobs in the nuclear construction sector pay 30–40% above the national average for similar roles in other infrastructure segments. This wage premium, alongside structured career paths and union oversight, has been cited as a model for “high-value employment” in Britain’s just energy transition. Trade unions such as GMB, Unite, and Prospect have been actively involved in shaping workforce terms, safety standards, and apprenticeship integration.

Julia Pyke and Nigel Cann, joint Managing Directors of Sizewell C, have positioned the project as both an energy milestone and a national industrial asset. They stated that Sizewell C will be “the first British-owned nuclear station in more than 30 years” and a showcase of “British infrastructure at its best.”

In parallel, government departments are working to ensure that economic development remains inclusive. The Department for Energy Security and Net Zero is partnering with local authorities to establish STEM education pathways, particularly in rural and underrepresented communities. The Department for Work and Pensions is also funding skills-matching initiatives to ensure that residents in East Anglia are first in line for job placements.

Once operational in the early 2030s, Sizewell C is projected to generate over £125 million annually in operational economic activity, not including tax revenues, maintenance contracts, and grid services. National Grid has confirmed that upgrades to connect Sizewell C will also increase grid capacity across eastern England, which could in turn attract new industrial users, including AI data centres, hydrogen hubs, and advanced manufacturing clusters.

Sizewell C is not only a major component of the UK’s clean energy transition, but also a macro-level stimulus for the regional and national economy. Economists at the Institute for Government and the UK Infrastructure Bank have separately modelled GDP gains equivalent to 0.3%–0.4% over a decade, assuming smooth delivery. These benefits multiply further when accounting for export potential of British engineering services and the role of Sizewell C in unlocking future private investments into next-generation nuclear technologies.

How does Sizewell C compare to previous UK nuclear projects?

Sizewell C builds on the legacy of Sizewell B, Britain’s most recent nuclear power station, which entered service in 1995. While Hinkley Point C has faced delays and budget inflation, Sizewell C benefits from a mature design and lessons learned from its predecessor project. In addition, the UK’s RAB model—which enables the recovery of costs from consumers during construction—is expected to improve cost transparency and risk-sharing.

Historically, Britain has struggled to complete large-scale nuclear projects on time and budget, but institutional sentiment toward Sizewell C has improved following clearer funding mechanisms, the withdrawal of China General Nuclear in 2022, and the establishment of Great British Nuclear as a dedicated delivery entity.

Analysts have flagged Sizewell C as a “critical infrastructure benchmark,” noting that its performance will shape the trajectory of both future SMR deployment and broader low-carbon energy financing.

What is the future of small modular reactors in the UK?

In parallel to Sizewell C, the government is advancing a nationwide Small Modular Reactor (SMR) programme. Great British Nuclear is expected to announce the winner of its SMR competition later this year, with Rolls-Royce SMR, GE Hitachi, and X-energy among the frontrunners. The goal is to deliver one of Europe’s first SMR fleets capable of powering millions of homes and industrial operations.

The government has allocated over £2.5 billion in R&D funding to support both fission-based SMRs and fusion energy initiatives, including the STEP (Spherical Tokamak for Energy Production) prototype facility in Nottinghamshire. SMRs are especially attractive for energy-intensive industries and data centres, offering shorter build times, modular scalability, and reduced capital risk.

Fusion energy research, long considered a distant goal, is now receiving record public investment, with plans to commercialize reactor concepts by the 2040s. Together, SMRs and fusion represent the long-term evolution of Britain’s nuclear landscape—Sizewell C is the bridge that gets the country there.

How is the defence sector tied to civil nuclear investment?

Alongside civil infrastructure, the UK is also increasing investment in its defence nuclear capability. Over the next decade, £4 billion will be directed toward the Plymouth naval base, while an additional £6 billion will be spent across the submarine industrial base at BAE Systems in Barrow-in-Furness and Rolls-Royce Submarines in Derby. These investments are part of the Strategic Defence Review’s commitment to increasing submarine production capacity and national security readiness.

The redevelopment of HMNB Clyde in Scotland will also begin, with an initial £250 million over three years. Separately, £420 million has been allocated to Sheffield Forgemasters to safeguard 700 jobs and add over 900 new roles in advanced manufacturing.

The dual-use nature of the UK’s nuclear investment strategy—supporting both civil and defence applications—has received broad support from industrial stakeholders and political actors. It is also expected to drive regional regeneration, particularly in historically under-invested areas like Barrow, Derby, and West Scotland.

Will private investors back Sizewell C after the government’s £14.2bn commitment?

While the government’s investment resolves long-standing funding bottlenecks, private sector engagement remains essential. Pensions and sovereign infrastructure funds are expected to participate in future funding rounds. The project’s final investment decision (FID) is anticipated by late 2025, marking the transition to full-scale construction.

Institutional investors have signalled interest, particularly under the UK’s new green taxonomy and National Wealth Fund. However, there is caution about potential construction overruns—a concern heightened by Hinkley Point C’s £33 billion revised cost estimates. Officials have stated that lessons from Hinkley will be incorporated to prevent budget inflation.

Sizewell C’s delivery will serve as a stress test for Britain’s broader nuclear vision. Its success could catalyse funding flows not only into SMRs and fusion but also into industrial electrification and hydrogen production, both dependent on stable low-carbon base-load power.