UK Green Homes Grant: National Audit Office findings
Short record: the main facts, with sources. A full case file has not been prepared.
- The record does not name which of my species, waters, soils or forests were harmed.
In September 2021 the National Audit Office reported that the Green Homes Grant Voucher Scheme, with £1.5 billion made available, was forecast to support energy efficiency measures in 47,500 homes against an initial expectation of 600,000. The Department expected to spend £313.8 million in total, of which £50.5 million was administration and programme costs.
National Audit Office, 8 September 2021: £1.5 billion made available; £313.8 million expected total spend, of which £50.5 million on administration and programme costs.
Status As of October 2026: the NAO's report of September 2021 and the Committee of Public Accounts' report of December 2021 are the audit findings on record; the government's response is not in the sources reviewed.
What happened
The Green Homes Grant Voucher Scheme was announced in July 2020 by the Chancellor of the Exchequer as part of the government's green recovery from the pandemic, with £1.5 billion made available. It offered homeowners up to £5,000 (£10,000 for low-income households) towards energy efficiency and low-carbon heat measures. The Department for Business, Energy & Industrial Strategy expected the Scheme to run between September 2020 and March 2021, to support up to 82,500 jobs over six months and to enable up to 600,000 households to save up to £600 on their energy bills. The Scheme closed to new applications on 31 March 2021.
In its report of 8 September 2021 (dated 3 September) the National Audit Office (NAO) stated that the Scheme "did not deliver the expected number of home energy efficiency installations or support the expected number of jobs". By 31 March 2021 the Department had paid out vouchers totalling £35.9 million and expected to pay out £256 million in total once all work was completed. It estimated that it would spend £314 million in total (£313.8 million), of which £50.5 million was programme management and administration. The Department forecast that the Scheme would eventually support efficiency measures in 47,500 homes; its modelling estimated that this level of activity would support up to 5,600 jobs over 12 months, which the NAO said it had not audited.
The NAO reported that homeowners had made 169,012 voucher applications, corresponding to 113,738 homes, and that more than 3,000 complaints were made between October 2020 and April 2021. It concluded that the tension between the Scheme's aims and the short delivery time was never properly reconciled, "leading to an overly complex scheme that could not be delivered to a satisfactory level of performance in the time available". The NAO stated that programme management and administrative expenses of £50.5 million amounted to more than £1,000 per home upgraded.
The House of Commons Committee of Public Accounts reported on the Scheme on 1 December 2021 (HC 635). It stated that the Scheme had underperformed badly, upgrading around 47,500 homes compared to the 600,000 originally envisaged, and that it was not convinced that the Department had fully acknowledged the scale of its failures.
- 2020July: the Chancellor announced the Scheme with £1.5 billion made available; September: the Scheme opened.
- 202131 March: the Scheme closed to new applications.
- 20218 September: the NAO published its report on the Scheme (HC 302).
- 20211 December: the Committee of Public Accounts published its report on the Scheme (HC 635).
What was said
“did not deliver the expected number of home energy efficiency installations or support the expected number of jobs”
How it looked
Shown
Recorded
- The NAO recorded that the Department forecast the Scheme would eventually support efficiency measures in 47,500 homes, against an initial expectation of 600,000, and that the Department estimated total spend of £313.8 million, of which £50.5 million was administration and programme costs.
- The NAO recorded that by 31 March 2021 the Department had paid out vouchers totalling £35.9 million of the £1.5 billion made available, and expected to pay out £255.9 million on issued vouchers in total.
- The Committee of Public Accounts recorded that the Scheme was upgrading around 47,500 homes compared to the 600,000 originally envisaged and accounted for £314 million out of the original £1.5 billion budget.
In nature's name
Promised
- “The Department expected the Scheme to enable up to 600,000 households to save up to £600 on their energy bills and to support up to 82,500 jobs over six months, as described by the NAO.” — Department for Business, Energy & Industrial Strategy (2020) National Audit Office
Money moved in nature's name
| What | Kind | Amount | Period |
|---|---|---|---|
| Green Homes Grant Voucher Scheme: funding made available Green Homes Grant (UK) National Audit Office | Budget | £1.5bn | 2020-21 |
| Department's estimate of total spend on the Scheme (programme management, installer skills training, administration and vouchers) Green Homes Grant (UK) National Audit Office | Spent | £314m estimate | 2020-21 to 2021-22 |
| Of which administration and programme costs Green Homes Grant (UK) National Audit Office | Spent | £51m estimate | 2020-21 to 2021-22 |
What was measured
The audit figures on record are numbers of homes the Department forecast would be supported, against an expectation, and costs; they are not a measurement of energy or emission savings. No independent measurement of an environmental benefit from the Scheme is on record in the sources reviewed.
Findings on record
- Official audit National Audit Office (2021-09-08) · Green Homes Grant Voucher Scheme, HC 302 (Session 2021-22): “an overly complex scheme that could not be delivered to a satisfactory level of performance in the time available” National Audit Office
Who gained
Reached nature or the ground
Gained elsewhere
In court and with insurers
Lawsuits and rulings
Insurers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Did the harm stop?
Not stated in the sources reviewed.
Who paid?
The UK Government made £1.5 billion available through the Department for Business, Energy & Industrial Strategy; the Department estimated it would spend £313.8 million, according to the NAO.
Sources
Government and regulators
- Green Homes Grant Voucher Scheme: Report by the Comptroller and Auditor General (HC 302, Session 2021-22)National Audit Office · 2021-09-08
- Green Homes Grant Voucher Scheme: Twenty-Seventh Report of Session 2021-22, Committee of Public Accounts (HC 635; copy hosted by Solar Thermal World)House of Commons Committee of Public Accounts · 2021-12-01
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