UK Inquiry Tracker

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

Treasury minutes: Government response to the Committee of Public Accounts on the Twenty Seventh report from Session 2021-22

1 Dec
2021

Report published

Twenty-Seventh Report - Green Homes Grant Voucher Scheme

20 Sep
2021

Oral evidence

Green homes grant voucher programme

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

11 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 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 on previous schemes, and felt the pace was necessary due to the need to boost jobs at a time of economic risk and to start installations before winter. However, this limited timeframe put immense constraints on design, consultation and procurement, at a time when the Department’s own delivery capacity in terms of personnel and skills was under strain as it responded to the impact of Covid-19, for example supporting vaccine procurement, the various business loan schemes, as well as its other building decarbonisation schemes. This Committee has previously highlighted that Government should be willing to halt schemes when they are not ready for implementation. However, here the Department 6 Green Homes Grant Voucher Scheme proceeded despite its own assessment, and that of the Infrastructure and Projects Authority, that the Scheme was high risk, and after its Projects and Investment Committee rejected the Scheme’s Full Business Case just prior to launch. The Accounting Officer’s decision to proceed was partly due to reasoning the Scheme would likely achieve value for money even if it did not spend its full budget. We question whether this justification was sufficient, given Managing Public Money principles require consideration of a programme’s feasibility, as well as its potential value for money. Recommendation: The Department should: • set out how it will improve its approach to testing and assuring the readiness of new programmes; and • where the Department is unable to take these actions, consider requesting a Ministerial Direction, bearing in mind its obligations under Managing Public Money to have regard for the feasibility of what is being proposed. Show less

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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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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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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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.

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.

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