The government announced the launch of Great British Nuclear to support new nuclear builds in the Spring Budget published on 15 March 20231. The same document confirmed that the Energy Price Guarantee (EPG) would be maintained at £2,500 for a further three months from April 20231.
The Budget set out the nuclear body as one of three measures intended to increase resilience to future energy price shocks, alongside making up to £20 billion available for Carbon Capture, Utilisation and Storage (CCUS) and extending the Climate Change Agreement scheme for a further two years to encourage energy efficiency1. No detail on Great British Nuclear's remit, budget, site selection or timetable appears in the Budget document1.
"To increase resilience to future energy price shocks, the government is supporting investment in the energy system by launching Great British Nuclear to support new nuclear builds, making up to £20 billion available for Carbon Capture, Utilisation and Storage (CCUS), and extending the Climate Change Agreement scheme for a further two years to encourage energy efficiency."
On household bills, the Budget stated that the government would align charges for comparable direct debit and Pre-Payment Meter (PPM) customers, so that those on PPMs no longer pay a premium for their energy costs1. It also said the EPG had reduced peak CPI inflation by 2.5 percentage points, and that support to households across this financial year and next would total £94 billion, equivalent to £3,300 per household on average1.
The Budget also recorded that the government created four new departments in February, including the Department for Energy Security and Net Zero1. It noted that following the Machinery of Government change of 7 February 2023, indicative budgets are presented and will be confirmed at Main Estimates 2023-241. As a result of decisions at the Spring Budget, the devolved administrations were stated to be receiving an additional £630 million through the Barnett formula over 2023-24 and 2024-251.
| Measure | Figure as given |
|---|---|
| Energy Price Guarantee | Maintained at £2,500 for a further three months from April 2023 |
| Carbon Capture, Utilisation and Storage | Up to £20 billion available |
| Climate Change Agreement scheme | Extended for a further two years |
| Total household support | £94 billion, equivalent to £3,300 per household on average |
| Barnett formula consequentials | £630 million over 2023-24 and 2024-25 |
Why it matters for households
Great British Nuclear is a supply-side measure. It concerns the building of new nuclear capacity, not the tariff a household pays or the equipment in a home. The Budget gives no capacity figure, no delivery date and no cost for the body itself, so the effect on a household's own energy independence cannot be quantified from what has been published1.
The measures with a direct bearing on bills are the EPG extension at £2,500 and the alignment of direct debit and prepayment charges1. The EPG is a cap on the unit rate for a typical household, not a ceiling on the total bill, and the Budget does not state what happens to the level after the three-month extension ends1. The prepayment alignment removes a standing premium for those meters, which affects the relative cost of paying for energy in advance rather than by direct debit1.
Longer term, new nuclear and CCUS capacity would change how electricity is generated, which bears on the exposure of household bills to wholesale gas prices. The Budget states that wholesale energy prices in 2023 are now forecast to be £1.50 per therm, less than half the £3.40 per therm assumed at the November 2022 forecast, and that the OBR expects inflation to fall from its peak of 10.7% in Q4 2022 to 2.9% in Q4 20231. The Budget does not set out how Great British Nuclear's output would reach households or how it would be priced.
What happens next
The Budget states that indicative budgets following the 7 February 2023 machinery of government change will be confirmed at Main Estimates 2023-241. No date is given for Great British Nuclear's establishment, its first projects or any planning decisions1. The EPG at £2,500 runs for three months from April 2023, after which no level is stated in the document1.