Green homes grant voucher programme
Public Accounts Committee
Closed
Inquiry
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 …
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3
Recommendations
26
Conclusions
1
Report
1
Oral session
1
Event
Activity timeline 4 events
1 Mar
2022
2022
1 Dec
2021
2021
Report published
20 Sep
2021
2021
Oral evidence
20 Sep
2021
2021
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
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
Reports 1 report · click to expand
| 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
Conclusion
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 …
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Government Response
2022. It should report against these metrics annually to enable Parliament and the public to determine what progress it is making towards meeting the objectives set out in the Government’s …
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HM Treasury
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3
Recommendation
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, …
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HM Treasury
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4
Conclusion
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 …
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Government Response
5. PAC conclusion: Departments often struggle to track benefits as closely as they track costs
HM Treasury
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5
Recommendation
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 …
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HM Treasury
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6
Recommendation
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. …
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HM Treasury
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1
Conclusion
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 …
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Government Response
2. PAC conclusion: Past experience shows that attempts to improve efficiency can inadvertently reduce the quality of services or increase costs elsewhere – what this Committee has called cost shunting.
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HM Treasury
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7
Conclusion
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, …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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8
Conclusion
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 …
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Government Response
3.7 The department determines whether planned large investments are supported by a sound, good quality business cases, are deliverable and offer value for money through the Projects and Investment Committee …
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HM Treasury
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9
Conclusion
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 …
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Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2023 4.2 The government is engaging closely with potential suppliers, both directly and through the BEIS-led Electrification of …
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HM Treasury
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10
Conclusion
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 …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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11
Conclusion
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 …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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12
Conclusion
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 …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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13
Conclusion
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 …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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14
Conclusion
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 …
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Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2023 4.2 The government is engaging closely with potential suppliers, both directly and through the BEIS-led Electrification of …
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HM Treasury
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15
Conclusion
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 …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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16
Conclusion
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 …
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Government Response
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2023 4.2 The government is engaging closely with potential suppliers, both directly and through the BEIS-led Electrification of …
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HM Treasury
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17
Conclusion
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 …
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Government Response
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The pace of delivery and magnitude of investment meant that GHGv was a challenging scheme to deliver from the …
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HM Treasury
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18
Conclusion
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 …
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Government Response
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The pace of delivery and magnitude of investment meant that GHGv was a challenging scheme to deliver from the …
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HM Treasury
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19
Conclusion
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 …
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Government Response
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The pace of delivery and magnitude of investment meant that GHGv was a challenging scheme to deliver from the …
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HM Treasury
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20
Conclusion
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 …
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Government Response
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The pace of delivery and magnitude of investment meant that GHGv was a challenging scheme to deliver from the …
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HM Treasury
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21
Conclusion
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 …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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22
Conclusion
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 …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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23
Conclusion
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 …
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Government Response
3.2 The department recognises the impact that the shortened timescale had on officials’ ability to meaningfully engage with consumers and installers, and that the scheme administrator’s digital delivery complicated these …
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HM Treasury
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24
Conclusion
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 …
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Government Response
2.2 As part of the governance approvals for investments, the Accounting Officer assesses whether a ministerial direction is required. Having assessed the risks associated with the Green Homes Grant Voucher …
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HM Treasury
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25
Conclusion
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 …
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Government Response
2.2 As part of the governance approvals for investments, the Accounting Officer assesses whether a ministerial direction is required. Having assessed the risks associated with the Green Homes Grant Voucher …
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HM Treasury
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26
Conclusion
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 …
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Government Response
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 The department carries out due diligence checks at all stages of a procurement and considers in-house solutions and delivery …
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HM Treasury
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27
Conclusion
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 …
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Government Response
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 The department carries out due diligence checks at all stages of a procurement and considers in-house solutions and delivery …
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HM Treasury
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28
Conclusion
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 …
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Government Response
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 The department carries out due diligence checks at all stages of a procurement and considers in-house solutions and delivery …
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HM Treasury
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29
Conclusion
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 …
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Government Response
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 The department carries out due diligence checks at all stages of a procurement and considers in-house solutions and delivery …
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HM Treasury
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