The UK government’s contingent liabilities are complex and varied and have an uncertain impact on government finances. They range from nuclear decommissioning to international guarantees supporting developing countries, from clinical negligence claims in the NHS to procurement indemnities for large infrastructure projects.

They can be an important policy tool in supporting economic growth and meeting the government’s objectives. However, it is imperative that when government takes on risk, the risk is well understood and managed.

In 2021 a Contingent Liability Central Capability (CLCC) team was established within UK Government Investments (UKGI) in partnership with the Government Actuary’s Department (GAD). The CLCC supports government departments in the evaluation, pricing and management of guarantees and insurance. It also monitors and reports on the government’s overall portfolio of risk from contingent liabilities, and published its first full review in November 2023.

Target audience and assumed knowledge level: No specialist knowledge required.

Speaker and company: Owen Dimbylow and Jonathan Day, UKGI, Gina Mosquera, Government Actuary's Department