Source · Select Committees · Public Accounts Committee
Recommendation 24
24
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 the Department’s reputation, we questioned why the Accounting Officer chose to proceed, rather than 60 C&AG’s Report, Figure 10 and paras 10, 13, 3.2 61 C&AG’s Report, para 3.4, Q30 62 Qq 30–32 63 Qq 30–32 64 Q83 and C&AG’s Report, paras 10, 13, 15 65 Qq 80–81 66 Q30 67 C&AG’s Report, para 13 68 C&AG’s Report, para 14 69 Committee of Public Accounts, Household energy efficiency measures, Eleventh Report of Session 2016–17, HC 125, July 2016 16 Green Homes Grant Voucher Scheme ask for a Ministerial Direction.70 The Accounting Officer told us that she recognised the concerns of the Projects and Investment Committee, but believed the Scheme was still likely to achieve value for money even if it did not spend its full budget. This was informed by the Department’s analysis of 16 scenarios of different levels of scheme demand and implementation costs, which said that in only one scenario of much higher costs and much lower demand did the scheme fail to provide net benefits. Her assessment also referenced assurance received from the Government Digital Service that the parts of the IT solution developed to that point were secure and reliable, and correspondence from HM Treasury stating that it would consider extending the Scheme’s funding into the next financial year should delivery risks materialise.71
Government Response
Not Addressed
HM Government
Not Addressed
2.2 As part of the governance approvals for investments, the Accounting Officer assesses whether a ministerial direction is required. Having assessed the risks associated with the Green Homes Grant Voucher (GHGv) scheme’s implementation timescale, the Accounting Officer gained assurance from HM Treasury that flexibility to shift a proportion of spending into the subsequent financial year would be considered, and £320 million was allocated in the 2020 Spending Review for the 2020-21 financial year. The Government Digital Service’s (GDS) independent assessment and approval of the initial digital product also provided assurances. In light of this, and the departmental record of delivering similar schemes, a ministerial direction was not considered to be required in this case.