Source · Select Committees · Public Accounts Committee
Recommendation 17
17
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 easier for them to apply. This resulted in an overly complex scheme with many process steps and excessive paperwork, resulting in extremely low demand; only 14,000 households took out a loan, leading to a cost to taxpayers of £17,000 for every loan arranged.47 Similarly, in 2018 the Renewable Heat Incentive saw poor uptake; the Department expected to install 513,000 new heating systems as part of the scheme, but at the time anticipated it would install only 111,000. This was also due to a lack of preparation by the Department to understand what consumers wanted and the potential barriers to participation.48 The Warm Front Scheme featured a lack of clarity over whether it was primarily aimed at energy efficiency or alleviating fuel poverty.49
Government Response
Not Addressed
HM Government
Not Addressed
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The pace of delivery and magnitude of investment meant that GHGv was a challenging scheme to deliver from the outset, the scale of which was amplified by the COVID-19 pandemic. 6.3 Lessons learnt from this scheme provide valuable insight into the challenges similar schemes face and will be used by senior officials when designing and planning future projects. 6.4 The department has a repository to facilitate lessons sharing between projects. In business cases, teams need to explain which projects they have engaged with prior to PIC review and approval. PIC challenges projects that have not mitigated previous failures sufficiently and tasks them with addressing this. 6.5 Other lessons and initiatives include: • an independent evaluation to assess the effectiveness of the GHGv scheme, due for publication in Autumn 2023, will be shared across energy efficiency schemes. • Briefings and presentations on lessons learned to relevant teams in the department including the PIC, the Performance and Risk Committee, and the Audit and Risk Assurance Committee, the Heat and Buildings Portfolio Board and the Delivery Transformation Board, • cross Whitehall briefings and lesson cascades in Winter 2021, involving around 100 representatives from HM Treasury, No 10 Downing Street, DEFRA and BEIS colleagues, and • a new programme to transform the department’s delivery capability ensuring both effective delivery of major projects and that priority outcomes and project metrics are met. It focuses on upskilling the department’s delivery knowledge and ability, considering lessons as part of project initiation and design.