Green homes grant voucher programme

Public Accounts Committee Closed Inquiry
Opened: 6 Sep 2021 Closed: 1 Mar 2022 Parliament page
In July 2020, the government allocated £3 billion to reduce carbon emissions from current heating systems in 600,000 homes and public buildings. This included £1.5 billion to help property owners cover the cost of installing energy efficient measures, such as insulation or renewable heat systems. The Department for Business, Energy … Read more
10 Recommendations
19 Conclusions
1 Report
1 Oral session
1 Event
Activity timeline 3 events
1 Mar
2022
Report published
1 Dec
2021
Report published
20 Sep
2021
Oral evidence
Oral evidence sessions 1 session
20 Sep 2021
View on parliament.uk
Green homes grant voucher programme
Ben Golding · Clean Power 2030 Sarah Munby · Department for Business, Energy and Industrial Strategy Selvin Brown · Department for Energy Security and Net Zero
Title HC No. Published Items Response
Twenty-Seventh Report - Green Homes Grant Voucher Scheme HC 635 1 Dec 2021 29 Responded
Recommendations & Conclusions
29 results
2 Recommendation Acknowledged
Twenty-Seventh Report - Green Home…
Despite clear warning signs, the Department proceeded with an unrealistic implementation timescale for the Green...
Despite clear warning signs, the Department proceeded with an unrealistic implementation timescale for the Green Homes Grant Voucher Scheme. The Department had twelve weeks to set up the Scheme from announcement to launch. It was confident this was possible based … Read more
Government Response
The government states it agrees with the recommendation and will ensure clear metrics for reform programmes, publishing regular updates on their operational effectiveness, but it doesn't detail improvements to readiness testing or address the request to consider Ministerial Directions.
HM Treasury
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3 Recommendation Not Addressed
Twenty-Seventh Report - Green Home…
The Scheme’s design was overly complex and did not sufficiently address the needs of consumers...
The Scheme’s design was overly complex and did not sufficiently address the needs of consumers and installers. The Department acknowledges that consumers and installers faced a poor customer experience when using the Scheme. There were delays to applications being processed, … Read more
Government Response
The government's response addresses civil service skills shortages and efficiency savings, but does not provide details on steps taken to secure meaningful consumer engagement or ensure proportionate administration costs in new programmes, as recommended.
HM Treasury
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4 Recommendation Not Addressed
Twenty-Seventh Report - Green Home…
The creation of jobs was a priority for the Scheme, but the Department failed to...
The creation of jobs was a priority for the Scheme, but the Department failed to maximise its impact on employment. The Scheme’s objectives of creating jobs and reducing carbon emissions were at times conflicting. The Department chose to prioritise measures … Read more
Government Response
The government's response quotes a general PAC conclusion about tracking benefits and costs, completely failing to address the specific recommendation for the Department to engage with suppliers and address scaling challenges for the new Boiler Upgrade Scheme.
HM Treasury
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5 Recommendation Not Addressed
Twenty-Seventh Report - Green Home…
The Department appointed a contractor without properly understanding whether it could deliver.
The Department appointed a contractor without properly understanding whether it could deliver. The Department undertook a rapid procurement for a grant administrator, who would develop a digital voucher application system for the Scheme. None of the bidders for the contract … Read more
Government Response
The government's response cites a general PAC conclusion about government efficiency drives, failing to address the specific recommendation for the Department to outline how it will improve technical scrutiny of bids during procurements.
HM Treasury
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6 Recommendation Not Addressed
Twenty-Seventh Report - Green Home…
The Department has persistently failed to learn lessons from previous energy efficiency schemes.
The Department has persistently failed to learn lessons from previous energy efficiency schemes. The Committee has seen a number of domestic energy efficiency schemes which have failed to achieve their ambitions, including the Green Deal and the Renewable Heat Incentive. … Read more
Government Response
The government's response refers to a general PAC conclusion about civil service capacity during emergencies and does not address the specific recommendation on embedding lessons learned from energy efficiency schemes.
HM Treasury
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1 Conclusion Not Addressed
Twenty-Seventh Report - Green Home…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department of Business, Energy and Industrial Strategy (the Department) about the Green Homes Grant Voucher Scheme. The government aims to achieve net zero … Read more
Government Response
The government's response references a general PAC conclusion about 'cost shunting,' which does not address the committee's specific background information and context provided in conclusion #1 regarding the Green Homes Grant Voucher Scheme.
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7 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
These issues were further exacerbated by underperformance of the Scheme Administrator (ICF Consulting Services Ltd,...
These issues were further exacerbated by underperformance of the Scheme Administrator (ICF Consulting Services Ltd, a contractor appointed by the Department), creating delays in applications being processed and vouchers issued to homeowners, as well as in making payments to installers, … Read more
Government Response
The government recognises the impact of the shortened timescale and acknowledges that the scheme administrator's digital delivery complicated processes and contributed to a complex user experience. It states that scheme design elements were informed by previous learnings and focused on quality assurance.
HM Treasury
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8 Conclusion Accepted
Twenty-Seventh Report - Green Home…
Despite spending a fraction of what was intended on vouchers, the Department expects it will...
Despite spending a fraction of what was intended on vouchers, the Department expects it will incur costs of £50.5 million in administering the Scheme, equating to about £1,000 for every home it will upgrade.19 The Department stated that this was … Read more
Government Response
The government describes its existing Projects and Investment Committee (PIC) process for assessing large investments and ensuring value for money, implying current mechanisms address such issues, rather than directly acknowledging the committee's findings on the specific cost inefficiencies of the Green Homes Grant Voucher Scheme.
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9 Conclusion Accepted
Twenty-Seventh Report - Green Home…
The Scheme encouraged the installation of primary measures which would produce the greatest carbon savings,...
The Scheme encouraged the installation of primary measures which would produce the greatest carbon savings, and which homeowners would be less likely to install without the support of a grant. However, over the short six-month duration of the Scheme, this … Read more
Government Response
The government agrees with the committee's findings and is engaging with suppliers and industry to ensure high-quality heat pump training is available, aiming to create jobs through the Boiler Upgrade Scheme and the new Green Jobs Delivery Group.
HM Treasury
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10 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
Industry associations stated that the short lead up time, and the Scheme’s six-month window was...
Industry associations stated that the short lead up time, and the Scheme’s six-month window was a challenge for many installers, providing a very short timeframe for them to identify the resources they needed to engage with the scheme, as well … Read more
Government Response
The government recognises the impact of the shortened timescale and digital delivery on installer engagement, stating that policy implementation will be improved through robust public consultation and by sharing lessons learned for future schemes.
HM Treasury
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11 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
Requiring PAS and MCS certification, alongside Trustmark registration, was intended to protect homeowners from poor...
Requiring PAS and MCS certification, alongside Trustmark registration, was intended to protect homeowners from poor quality workmanship and fraud.29 However, gaining these certifications requires investment and time, which many installers were unwilling to do for only a 6-month scheme.30 At … Read more
Government Response
The government acknowledges the impact of shortened timescales and complex digital delivery on installer engagement. It reaffirms commitment to high quality standards based on the EHC review and states that lessons learned from the scheme will inform future policy development and implementation, including robust public consultation.
HM Treasury
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12 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
Whilst the Department extended the scheme’s duration by 12 months in November 2020, it later...
Whilst the Department extended the scheme’s duration by 12 months in November 2020, it later let these businesses down when on 27 March 2021 it suddenly announced the Scheme would close at the end of 31 March 2021.35 This abrupt … Read more
Government Response
The government recognises the negative impact of the shortened timescale and abrupt scheme closure on stakeholders, stating that policy implementation can be improved through robust public consultation and by sharing lessons learned for future schemes.
HM Treasury
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13 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
The Department acknowledged that the impact on many installers was less than ideal, however, it...
The Department acknowledged that the impact on many installers was less than ideal, however, it stated that the alternative was to continue running an unacceptable standard of service.37 It also argued that installers would be able to access the other … Read more
Government Response
The government acknowledges the impact of shortened timescales and states that policy implementation will be improved through robust public consultation and sharing lessons learned for future schemes, but does not directly address the contradiction regarding the viability of alternative schemes for SMEs.
HM Treasury
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14 Conclusion Accepted
Twenty-Seventh Report - Green Home…
These factors point to the Scheme’s underperformance on jobs; the Department initially anticipated the scheme...
These factors point to the Scheme’s underperformance on jobs; the Department initially anticipated the scheme would support up to 82,500 jobs over 6 months, however, it now forecasts that it will support only 5,600 jobs over 12 months.40 The Department’s … Read more
Government Response
The government agrees with the committee's observation regarding job performance and monitoring. It states the independent evaluation of the GHGv scheme is assessing its impact on jobs using qualitative and quantitative methods, and commits that future policies will adhere to monitoring and evaluation frameworks. From 2022-2024, the department will explore data science methods to monitor job trends for the wider Net Zero strategy.
HM Treasury
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15 Recommendation Accepted
Twenty-Seventh Report - Green Home…
Considering these difficulties, it comes as no surprise that industry criticised the design of the...
Considering these difficulties, it comes as no surprise that industry criticised the design of the Scheme, and recommended greater consultation for future ones.41 The Department stated that whilst it did engage with industry before the Scheme’s launch, it was limited … Read more
Government Response
The government recognises the impact of shortened timescales on stakeholder engagement. It commits to improving future policy implementation by undertaking robust public consultation for each proposed development to gather views from stakeholders and seek feedback from consumers, and will share lessons learned from the GHGv scheme.
HM Treasury
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16 Conclusion Accepted
Twenty-Seventh Report - Green Home…
In our recent evidence session on Achieving Net Zero Strategy, the Department set out its...
In our recent evidence session on Achieving Net Zero Strategy, the Department set out its intention to introduce a Boiler Upgrade Scheme to support the transition of heating from gas boilers to heat pumps, which it hopes will support jobs … Read more
Government Response
The government agrees with the committee's observation, stating the Boiler Upgrade Scheme (BUS) will be implemented by Winter 2023. It details ongoing engagement with suppliers, efforts to ensure heat pump training is available with industry capacity to upskill 7,000 installers annually, and expects the BUS to support 2,100 direct FTE jobs, with ongoing monitoring of job trends.
HM Treasury
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17 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
In 2016 our predecessors on the Committee identified similar problems when they examined the Green...
In 2016 our predecessors on the Committee identified similar problems when they examined the Green Deal; in that case the former Department for Energy and Climate did not undertake enough work to understand consumer needs, and how to make it … Read more
Government Response
The government agrees with the committee's implied recommendation to learn from past scheme failures, stating it is 'implemented'. The response details processes for extracting and sharing lessons learned from the GHGv scheme through independent evaluation, internal briefings, cross-Whitehall cascades, and a new programme to transform the department's delivery capability for future projects.
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18 Conclusion Accepted
Twenty-Seventh Report - Green Home…
The Department argued that it had learned lessons from previous schemes.50 The design of the...
The Department argued that it had learned lessons from previous schemes.50 The design of the Scheme was based on the Green Deal Home Improvement Fund – itself a voucher scheme launched in 2014 which saw rapid uptake by consumers, and … Read more
Government Response
The government agrees with the committee's findings, stating the recommendation is implemented, and has initiated multiple specific actions including a lessons learned repository, mandatory engagement with previous projects in business cases, and a new programme to transform delivery capability.
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19 Recommendation Accepted
Twenty-Seventh Report - Green Home…
We are likewise concerned that the Department will fail to learn from this scheme.
We are likewise concerned that the Department will fail to learn from this scheme. When asked what the primary failings of the Scheme were, whilst acknowledging the short duration and the design of the scheme as factors, the Department largely … Read more
Government Response
The government agrees with the recommendation and states it is 'implemented,' committing to fully recognise and learn from the scheme's failures. It details steps including an independent evaluation due Autumn 2023, extensive sharing of lessons internally and across Whitehall, and a new programme to transform departmental delivery capability for future projects.
HM Treasury
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20 Recommendation Acknowledged
Twenty-Seventh Report - Green Home…
The Department’s previous energy efficiency schemes for private housing have operated in different ways, and...
The Department’s previous energy efficiency schemes for private housing have operated in different ways, and for varying timescales, and this fragmented, stop-go activity has hindered long term stable progress towards Government’s energy efficiency ambitions. In evidence to us industry associations … Read more
Government Response
The government agrees with the recommendation for a stable long-term plan, stating it is 'implemented' by the Heat and Buildings Strategy. The response outlines a commitment to applying lessons learned from the GHGv scheme through an independent evaluation, internal briefings, cross-Whitehall cascades, and a new programme to transform departmental delivery capability for future projects.
HM Treasury
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21 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
The Chancellor announced the Green Homes Grant Voucher Scheme (the Scheme) on the 8 July...
The Chancellor announced the Green Homes Grant Voucher Scheme (the Scheme) on the 8 July 2020, with the expectation that it would launch on 30 September 2020. This allowed just 12 weeks to get the scheme up and running. During … Read more
Government Response
The government recognises the impact of the shortened timescale and the scheme administrator's digital delivery complications. It commits to improving policy implementation through robust public consultation and sharing lessons learned from the GHGv scheme to inform future policy development.
HM Treasury
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22 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
The Department told us that it had a high-risk appetite in getting the scheme up...
The Department told us that it had a high-risk appetite in getting the scheme up and running due to the ongoing effects of the pandemic, and the short 12-week timescale was necessary to boost jobs as 60% of the construction … Read more
Government Response
The government acknowledges the negative impact of the shortened timescale for the scheme and states it aims to improve policy implementation through robust public consultation and by sharing lessons learned for future schemes.
HM Treasury
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23 Conclusion Acknowledged
Twenty-Seventh Report - Green Home…
This rushed timescale meant that the Department undertook limited stakeholder engagement and restricted its options...
This rushed timescale meant that the Department undertook limited stakeholder engagement and restricted its options for procuring an administrator.64 The Department also did not pilot the scheme to test its feasibility.65 These issues led to many of the problems described … Read more
Government Response
The government recognises the negative impact of the rushed timescale and limited stakeholder engagement on the scheme's delivery, stating that policy implementation will improve through robust public consultations and sharing lessons learned for future schemes.
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24 Conclusion Accepted
Twenty-Seventh Report - Green Home…
In a previous Committee report Home Energy Efficiency Measures, our predecessors highlighted that Government “should...
In a previous Committee report Home Energy Efficiency Measures, our predecessors highlighted that Government “should be prepared to pull back on plans if it is clear they are unlikely to be successful and risk taxpayers’ money”.69 Given the risk to … Read more
Government Response
The government explained that the Accounting Officer assessed the risks of the Green Homes Grant Voucher scheme, gained assurance on funding flexibility from HM Treasury and digital product approval from GDS, and consequently did not consider a ministerial direction to be required based on existing governance approvals.
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25 Conclusion Accepted
Twenty-Seventh Report - Green Home…
Under Managing Public Money principles, Accounting Officers should consider the regularity, propriety, and feasibility of...
Under Managing Public Money principles, Accounting Officers should consider the regularity, propriety, and feasibility of initiatives, as well as their potential value for money. In terms of feasibility, Accounting Officers should seek a direction “where there is a significant doubt … Read more
Government Response
The government explained that the Accounting Officer assessed the risks of the Green Homes Grant Voucher scheme, gained assurance on funding flexibility from HM Treasury and digital product approval from GDS, and consequently did not consider a ministerial direction to be required based on existing governance approvals.
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26 Conclusion Accepted
Twenty-Seventh Report - Green Home…
Due to the 12-week timescale for implementing the Scheme, the Department had limited time to...
Due to the 12-week timescale for implementing the Scheme, the Department had limited time to procure a Scheme Administrator who would develop a digital voucher application system and process applications. The Department received three bids, but none of the bidders … Read more
Government Response
The government agrees with the committee's findings, stating the recommendation is implemented, and details specific procedures it will undertake for future procurements, including robust supplier assessment, clear evaluation criteria, and thorough checks on bids and implementation plans.
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27 Conclusion Accepted
Twenty-Seventh Report - Green Home…
As a result, the Department awarded the contract to ICF, accepting it’s accelerated timetable for...
As a result, the Department awarded the contract to ICF, accepting it’s accelerated timetable for completion, whilst also putting in place a manual processing facility as a contingency in case the timetable overran.74 ICF subsequently struggled to implement the required … Read more
Government Response
The government agrees with the committee's findings, stating the recommendation is implemented, and details specific procedures it will undertake for future procurements, including robust supplier assessment, clear evaluation criteria, and thorough checks on bids and implementation plans, to prevent similar issues.
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28 Recommendation Accepted
Twenty-Seventh Report - Green Home…
Despite the Department appointing a contractor which could not deliver the system, the Department felt...
Despite the Department appointing a contractor which could not deliver the system, the Department felt its procurement process was run successfully overall.76 In response to ICF’s proposed costs being far below the other two bidders, the Cabinet Office undertook a … Read more
Government Response
The government agreed with the recommendation to improve procurement processes, outlining a detailed list of actions the department will undertake both before and after receiving bids. These actions include a two-stage process, robust supplier assessment, engaging GDS for IT systems evaluation, thorough evaluation of implementation plans, and forensic accountancy for bid pricing.
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29 Recommendation Accepted
Twenty-Seventh Report - Green Home…
The Department stated that at the time of the procurement, it appeared that ICF had...
The Department stated that at the time of the procurement, it appeared that ICF had a ready-made system that had already been used on over 100 grant schemes in the US and Canada, and which could quickly and cheaply be … Read more
Government Response
The government agrees with the recommendation, stating it is 'implemented'. It commits to a range of enhanced procurement processes including considering two-stage processes for earlier supplier involvement, robust market assessments, analyzing CCS framework contracts for protection, improving evaluation training, engaging GDS for IT systems, and conducting thorough bid evaluations including abnormal low bid assessments and exploring deliverability pre-award.
HM Treasury
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Government Response AI assessment · 29 of 10 classified
Accepted 13
Acknowledged 11
Not Addressed 5
Total 10 recs + 19 conclusions