Failed Green Deal scheme cost £17,000 for every household that signed up
By Paul Homewood
From the Telegraph:
Taxpayers have been left with a £17,000 bill for every household that signed up to the Government’s failed flagship energy efficiency scheme, the Green Deal.
Ministers wasted a total of £240 million on the ill-fated programme, which was launched in 2013 with the intention of upgrading Britain’s entire housing stock, a damning National Audit Office report found.
The Green Deal was supposed to encourage households to take out loans to fund the cost of installing measures such as insulation or double glazing, with the cost paid back out of the resulting savings on their energy bills.
Yet the scheme was eventually abandoned in July last year after just 14,000 households signed up, taking out loans worth just £50 million – on average less than £3,600 each.
By contrast the Department of Energy and Climate Change (DECC) had spent £240 million – more than £17,000 per household – on setting up, promoting and helping administer the scheme.
The Green Deal did not deliver value for money and “failed to deliver any meaningful benefit”, Amyas Morse, head of the NAO, concluded.
The NAO also criticised the Government for the costly design of another energy efficiency scheme, the Energy Company Obligation (ECO), which required gas and electricity suppliers to upgrade homes.
The £3bn scheme was paid for on energy bills and was almost three times more expensive per tonne of carbon saved than previous schemes, so increasing energy bills, the NAO said.
The DECC said the energy efficiency schemes would together “deliver over £6 billion of energy bill savings to the most vulnerable” and had helped make more than one million homes warmer.
It said it had already taken action “to address the issues in this report” by ceasing funding for the company that issued the loans and launching an independent review of the energy efficiency sector.
It did not take a genius to work out that very few people would get suckered into the Green Deal, knowing that they would have to pay back the money sooner or later. Given the propensity of civil servants to burn money on administration, the outcome was inevitable
Since Ed Davey was in charge at the time, perhaps he should be surcharged for wasting taxpayers’ money.