Twenty-Seventh Report - Green Homes Grant Voucher Scheme

Select Committee
Public Accounts Committee HC 635 1 December 2021
Report Status Response document linked Recorded deadline: 1 Feb 2022

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Conclusions & Recommendations 29 items (10 recs)
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Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty Seventh report from Session 2021-22 · published 1 Mar 2022
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Recommendations & Conclusions

29 results
2 Recommendation
Despite clear warning signs, the Department proceeded with an unrealistic implementation timescale for the Green...
Recommendation
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
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3 Recommendation
The Scheme’s design was overly complex and did not sufficiently address the needs of consumers...
Recommendation
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
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4 Recommendation
The creation of jobs was a priority for the Scheme, but the Department failed to...
Recommendation
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
HM Treasury
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5 Recommendation
The Department appointed a contractor without properly understanding whether it could deliver.
Recommendation
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
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6 Recommendation
The Department has persistently failed to learn lessons from previous energy efficiency schemes.
Recommendation
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
HM Treasury
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1 Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
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
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7 Conclusion
These issues were further exacerbated by underperformance of the Scheme Administrator (ICF Consulting Services Ltd,...
Conclusion
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
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8 Conclusion
Despite spending a fraction of what was intended on vouchers, the Department expects it will...
Conclusion
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
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9 Conclusion
The Scheme encouraged the installation of primary measures which would produce the greatest carbon savings,...
Conclusion
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
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10 Conclusion
Industry associations stated that the short lead up time, and the Scheme’s six-month window was...
Conclusion
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
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11 Conclusion
Requiring PAS and MCS certification, alongside Trustmark registration, was intended to protect homeowners from poor...
Conclusion
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
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12 Conclusion
Whilst the Department extended the scheme’s duration by 12 months in November 2020, it later...
Conclusion
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
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13 Conclusion
The Department acknowledged that the impact on many installers was less than ideal, however, it...
Conclusion
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
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14 Conclusion
These factors point to the Scheme’s underperformance on jobs; the Department initially anticipated the scheme...
Conclusion
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
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15 Recommendation
Considering these difficulties, it comes as no surprise that industry criticised the design of the...
Recommendation
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
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16 Conclusion
In our recent evidence session on Achieving Net Zero Strategy, the Department set out its...
Conclusion
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
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17 Conclusion
In 2016 our predecessors on the Committee identified similar problems when they examined the Green...
Conclusion
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
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18 Conclusion
The Department argued that it had learned lessons from previous schemes.50 The design of the...
Conclusion
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
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19 Recommendation
We are likewise concerned that the Department will fail to learn from this scheme.
Recommendation
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
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20 Recommendation
The Department’s previous energy efficiency schemes for private housing have operated in different ways, and...
Recommendation
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
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21 Conclusion
The Chancellor announced the Green Homes Grant Voucher Scheme (the Scheme) on the 8 July...
Conclusion
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
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22 Conclusion
The Department told us that it had a high-risk appetite in getting the scheme up...
Conclusion
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
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23 Conclusion
This rushed timescale meant that the Department undertook limited stakeholder engagement and restricted its options...
Conclusion
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
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24 Conclusion
In a previous Committee report Home Energy Efficiency Measures, our predecessors highlighted that Government “should...
Conclusion
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
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25 Conclusion
Under Managing Public Money principles, Accounting Officers should consider the regularity, propriety, and feasibility of...
Conclusion
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
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26 Conclusion
Due to the 12-week timescale for implementing the Scheme, the Department had limited time to...
Conclusion
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
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27 Conclusion
As a result, the Department awarded the contract to ICF, accepting it’s accelerated timetable for...
Conclusion
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
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28 Recommendation
Despite the Department appointing a contractor which could not deliver the system, the Department felt...
Recommendation
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
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29 Recommendation
The Department stated that at the time of the procurement, it appeared that ICF had...
Recommendation
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
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