"Despite the Department’s considerable efforts, the rushed delivery and implementation of the scheme has significantly reduced the benefits that might have been achieved"
This is despite the promise it would benefit 600,000 households and save homeowners up to £600 on bills.
The government announced the scheme in July 2020 as part of its ‘green recovery’ from the pandemic, offering homeowners the opportunity to apply for up to £5,000 funding (£10,000 for low-income households) to install energy efficiency improvements and low carbon heat measures in their homes.
Homeowners were expected to identify a certified installer and apply for vouchers with the installer receiving the grant funding once they had fitted the measure. The Department expected the scheme to run between September 2020 and March 2021, support up to 82,500 jobs over six months and enable up to 600,000 households to save up to £600 on their energy bills.
However, the NAO has criticised the "overly complex" scheme that "could not be delivered to a satisfactory level of performance in the time available".
Should all current applications be processed, the scheme will have upgraded an expected 47,500 homes, at a cost to the taxpayer of about £314 million. Of this, £50.5 million is for programme management and administrative expenses, amounting to more than £1,000 per home upgraded.
The NAO' report concluded that "despite the Department’s considerable efforts, the rushed delivery and implementation of the scheme has significantly reduced the benefits that might have been achieved, caused frustration for homeowners and installers, and had limited impact on job creation for the longer term".
It added: "While we recognise the desire to act quickly in the interests of delivering an economic stimulus, the government should be prepared to limit or delay the launch of a programme if the evidence suggests it is not ready. It is important that the Department and HM Treasury heed the lessons from this, and previous schemes, for any future domestic decarbonisation programme."
Ross Counsell, chartered surveyor and director at GoodMove, commented: “The £1.5 billion Green Homes Grant Scheme aimed to reduce carbon dioxide released by heating homes and buildings by providing vouchers to energy-saving measures and is part of Boris Johnson’s “build back greener” pledge. The scheme was clearly made with good intentions, but the recent research from the National Audit Office has now shown that the scheme has created administration costs of over £1,000 for some homeowners.
“So, what went wrong? The scheme can be seen as another idealistic government scheme that hasn’t worked out. For example, the stamp duty Holiday had good intentions to make homes more affordable for first-time buyers, but contributed to house prices soaring to a record high of £262,954. This scheme too was also built on an ideal, without much consideration on how it would actually impact homeowners.
“When the government announced the scheme it was promised that it would offer over 600,000 households to save up to £600 on their bills. However, the initiative has so far benefited only 47,500 homes, following homeowners complaining about delays for vouchers, and problems finding certified tradespeople.
“Recent figures from the ONS Construction Output figures also show that construction orders had increased by 17.6% in June, yet output had fallen by 1.3% in the same month. What we see is an industry trying to bounce back from the strain Covid-19 restrictions put on international imports of materials, and the government clearly has not factored this in when announcing the scheme.
“We know the government scheme may not have fulfilled its promises, yet there are many ways homeowners can raise the sustainability of their home - and in the long run save on bills. With the winter months on the horizon, the home insulation would be a great investment from homeowners and although the upfront cost can start from £250, in the long run, you can expect to save around £150 a year on bills.
“Hopefully, the government will think more thoroughly about future green schemes so that as a country we can collectively work towards creating more sustainable homes, and a more sustainable society.”
