Green Homes Grant Voucher Scheme

Alan Whitehead Excerpts

Thursday 27th May 2021 Westminster Hall

[Dr Alan Whitehead (Southampton, Test) (Lab)]

We have had an excellent debate, with a very high degree of agreement among those taking part, not only about the failings of this particular scheme but about the imperative at the heart of what we have been talking about this afternoon. That is the imperative of ensuring that, within a very short time, we have secured in this country a massive uplift in the energy efficiency of homes across all sectors of housing—not just the easy-to-treat homes but the ones that have single cavity walls, for example, and are difficult to treat. We have to put into those homes different forms of heating to go along with the energy efficiency uprating, and the reason why we have to do that is of course to decrease very substantially the emissions from buildings, which contribute so substantially to CO₂ emissions overall, which could lead us well away from our target of net zero by 2050. Indeed, buildings in the UK emit some 19% of emissions overall, and the vast, and a substantial, majority of that is in residential homes, so the targeting of schemes to uprate energy efficiency in homes is vital.

The Chair of the Environmental Audit Committee, the right hon. Member for Ludlow (Philip Dunne), made an excellent contribution. By the way, I congratulate his Committee on its hard work in looking forensically not just at this particular scheme, but at the things we need to do in order to get to where we want to go on home insulation. He mentioned the figure of 13.6 million homes—not new homes but homes of all kinds. As he said, all homes have different requirements when it comes to their retrofit. There are 13.6 million homes that will basically need work to be done on them over the next nine years. He estimated that that equates to about 1.5 million properties a year over the next nine years needing to have those measures.

Although I welcomed the Treasury’s initial announcement in summer 2020 that what looked like a substantial amount of money would be made available for retrofitting homes, we have to understand that, even at that point, it was substantially less than the sum required to meet the ambition set out in the energy White Paper to make all homes EPC conform to EPC band C. I fully accept the Environmental Audit Committee Chair’s strictures about the use and accuracy of EPCs. Nevertheless, the ambition is that all properties should be band C or above by 2035. That date, I think, should come further forward, but that is the area that we are looking at.

The idea that we could make some reasonably rapid initial progress with a scheme in the private sector involving vouchers was a welcome start. I think that the only lesson or conclusion that we can draw from the allocation of this particular fund, the particular way it was done and the subsequent requirement placed on BEIS to draw up a scheme is that we should never do it in this way again, as far as our targets are concerned. Perhaps there is a lesson from what has happened over the last few months.

I am interested to hear from the Minister about this. My understanding of how the scheme progressed is that the Treasury, without any idea of what was involved in the process, announced that money would be made available—£1.5 billion, with £500 million for the local authority delivery scheme—with about as much detail as I have set out this afternoon. The Treasury then said to BEIS, “Go away and work up a scheme to make it happen, and we want it on the ground as quicky as possible.” Had I been a fly on the wall during those discussions, I would have hoped to have seen BEIS kicking back at the Treasury and saying, “Look, this is ludicrous. You can’t do it this way. You can’t expect a scheme to be worked up in this way. And, by the way, you can’t expect a scheme to be conceived, put into operation, undertaken and closed within a year. You just can’t do it that way.” That is what BEIS should have said to the Treasury. Instead, it rapidly produced a scheme and, in so doing, undertook the services of a consultancy company based in America which had no experience of doing these sorts of operations.

Frankly, the scheme was doomed not to work from the start. Indeed, that is what happened. The final figures, which came out in May, show the frankly pathetic number of measures that arose from the scheme. We also heard, while we ran through that period, dreadful stories of building companies that had geared themselves up to do the work but did not get paid for it. There were immeasurable layers of bureaucracy involved in getting voucher schemes going, even though many householders desperately wanted to take advantage of them.

I have the figures from the end of February, which were released before the final figures were made available. At that point—the scheme was still going but it was nearing its end—123,000 vouchers had been applied for, but only 28,000 had been issued. What was the company running this organisation doing by working out the scheme in such a way? There were only 5,800 installations at that point, and of those, only 900 or so were for low carbon measures. This scheme was not just a pathetic failure; it has put the cause of retrofitting homes back substantially. Companies that wanted to do the work were burned yet again and will perhaps be reluctant to undertake further work. Disappointed householders were grievously misled on the energy uprating process, and precious time has been lost for getting to grips with this. To say, “This is a lesson learned in how not to do it,” is a bit of an understatement.

I hope that the considerations raised by every contributor this afternoon will be at the heart of the lessons that the Department will take on board for future projects on energy efficiency uprating. The scheme has to be serious. It has to have the right amount of money to make a difference. The timescale has to be long enough for people to be able to do the work properly and have confidence in the system, and for the variety of necessary measures to be put in place, including, as the Chair of the EAC said, measures that suit the different circumstances of each household and the time required to get the work done.

We also ought to take lessons from the element of the scheme that had some purchase—namely, the local authority part, which has been a relative success. Although it made local authorities adhere to breakneck timescales, they were nevertheless often able to deliver because they were not an American consultancy firm trying to do things by numbers overseas. Rather, they were on the ground with their local communities, engaged in the work. That is another lesson that we ought to draw from this fiasco—give it to local agencies that can actually do the work properly on the ground and make it happen on a daily basis, rather than run it remotely from the centre.

We can draw some valuable lessons from this fiasco. I am tempted to say that it is such a dreadful catastrophe for the cause of energy efficiency activity that, in the words of Stanley Holloway,

“someone’s got to be summonsed!”

It is a shocking failure of Government.

I hope that the lessons will have been at least partly learned by the time the heat in buildings strategy comes out, which, as hon. Members have mentioned, has been delayed on several occasions. I should not say this as a shadow Minister—it should be for the Minister to say this—but I am confident that it will come out shortly. I hope that the Minister will be able to tell us that it will come out in the next few days or weeks and that it will contain a number of the lessons mentioned this afternoon for bringing forward the ambition of energy efficiency.

All of that is contained in the energy White Paper. I hope that the heat in buildings strategy will address itself to the width and depth of the task in front of us. We know that that we have not appreciated the scale of the task, but I hope that the strategy will, finally, address what we actually need to do to achieve our energy efficiency targets.

[Mr Laurence Robertson (in the Chair)]

We need to leave a couple of minutes for Mr Dunne to wind up at the end. We now go to the Minister, Paul Scully.