Twenty-Seventh Report - Green Homes Grant Voucher Scheme
Select Committee
Public Accounts Committee
HC 635
1 December 2021
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
Recommendations & Conclusions
13 results
8
Conclusion
Accepted
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
Government Response Summary
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.
HM Treasury
View Details
9
Conclusion
Accepted
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
Government Response Summary
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
View Details
14
Conclusion
Accepted
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
Government Response Summary
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
View Details
15
Recommendation
Accepted
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
Government Response Summary
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
View Details
16
Conclusion
Accepted
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
Government Response Summary
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
View Details
18
Conclusion
Accepted
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
Government Response Summary
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.
HM Treasury
View Details
19
Recommendation
Accepted
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
Government Response Summary
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
View Details
24
Conclusion
Accepted
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
Government Response Summary
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.
HM Treasury
View Details
25
Conclusion
Accepted
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
Government Response Summary
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.
HM Treasury
View Details
26
Conclusion
Accepted
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
Government Response Summary
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.
HM Treasury
View Details
27
Conclusion
Accepted
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
Government Response Summary
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.
HM Treasury
View Details
28
Recommendation
Accepted
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
Government Response Summary
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.
HM Treasury
View Details
29
Recommendation
Accepted
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
Government Response Summary
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
View Details