Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Publish an annual report to Parliament on all retrofit schemes, non-compliance and fraud.
Recommendation
The Department’s system of quality assurance and consumer protection was far too complicated, and organisations within it focused too much on their own tasks rather than whether the system was protecting consumers. The ECO schemes and the retrofit quality assurance and consumer protection system combine to make a system that is too layered, fragmented and complicated. The Department accepts there were “serious failings at every level” and the system “has not provided the protection that consumers deserve”. Responsibilities were unclear and organisations focussed on their individual roles within the complex system, rather than taking a step back to critically assess the system and identify risks and design flaws. For example, none of the expert organisations involved spotted that the move from a single- measure to multi-measure scheme would add delivery complications and therefore risk. TrustMark accepts it should have realised much sooner that the system design under-estimated the level of risk involved. The United Kingdom Accreditation Service (UKAS), which accredits the retrofit installer certification bodies, apologises for its “role within the system”. We welcome the organisations accepting some responsibility, but it is not good enough for organisations holding so much expertise and knowledge to say they delivered on their specific responsibilities and instead blame the system of which they were a key part. recommendation The Department should publish an annual report to Parliament on all its retrofit schemes, their level of non-compliance and estimated fraud, and whether or not the schemes are working as intended. 6
Government Response Summary
The government accepted the recommendation, committing to publishing an annual report to Parliament on retrofit schemes, non-compliance, and estimated fraud before Autumn 2027, to be included in the department’s Annual Report and Accounts. It will also establish a standard methodology for reporting on error and fraud for new and existing schemes.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. the first publication before Autumn 2027. To align with the National Audit Office recommendation, this will be included in the department’s Annual Report and Accounts. The department’s Annual Report and Accounts sets out DESNZ’s approach to managing fraud and error, including counter-fraud governance and capability, risk management across major schemes. The department has assessed the quality assurance processes in use across retrofit schemes to establish which quality metrics are currently being measured and how frequently. Based on the lessons learned from ECO4 and GBIS, the department intends to establish a standard methodology for measuring and reporting on error and fraud, which will be used for all new schemes. Where it is feasible and represents value for money to do so, the department will assess existing retrofit schemes against this methodology.