Source · Select Committees · Public Accounts Committee
Recommendation 14
14
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 estimates are based on economic modelling that calculates the likely number of jobs based on the amount spent, rather than on concrete evidence of the actual number of jobs supported, and would not take into account the negative effects that businesses reported from the Scheme’s difficulties and subsequent closure.
Government Response
Not Addressed
HM Government
Not Addressed
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 Heat Task Group. The government is also working closely with industry to ensure that high-quality heat pump training is available, both for new entrants to the heating sector and existing heating installers who do not have heat pump experience. 4.3 In August 2021, the Heat Pump Association launched a new upskilling course for existing heating engineers. This course can be completed in under a week and industry has capacity to upskill over 7,000 heating installers per year to install heat pumps. 4.4 Job creation will be a benefit of the Boiler Upgrade Scheme (BUS) because of the increased installation numbers that are expected to be delivered through financial incentives for customers. The BUS will support approximately 2,100 direct full-time equivalents (FTE) and 1,800 indirect FTE. Scheme monitoring and evaluation will provide evidence on installer numbers and how these develop through the lifetime of the scheme. Ongoing industry engagement will provide supplementary market intelligence on staff training and upskilling numbers, increasing clarity on supply chain developments. 4.5 The department is working closely with industry ahead of the Domestic Renewable Heat Incentive scheme’s closure and BUS launch, to provide clarity on BUS eligibility requirements and ensure the supply chain has the capacity to deliver. Industry stakeholders have signalled confidence in the industry’s ability to deliver 30,000 installations in year one of the scheme based on current installer numbers, and planned training. 4.6 The department will be establishing the Green Jobs Delivery Group, a commitment in the Net Zero Strategy, to be the central forum through which government, industry and other key stakeholders work together to ensure that the UK has the workforce needed to deliver a green industrial revolution. The Group will include Ministerial representation and will be co- chaired by an industry representative. 4.7 The GHGv scheme aimed to support jobs that were at risk during the pandemic. The scheme’s independent evaluation is using qualitative and quantitative research methods to assess how suppliers responded to the scheme and its impact on jobs. 4.8 The department’s policies are expected to fulfil requirements set out in the published Monitoring and Evaluation Framework. This includes having good quality monitoring and evaluation that is linked to policy objectives and evidence needs, including jobs where appropriate. From 2022-2024, the department will be exploring data science methods to monitor trends in jobs for the wider Net Zero strategy using online vacancy advert data.