Why did the Green Homes Grant fail?
3 things we heard from people who came to us for help with the scheme
Please note: this blog refers to England only
Why did the Green Homes Grant fail? If the government is to meet its new, ambitious target to cut carbon emissions by 78% by 2035, it’s a critical question.
The challenge of improving the energy efficiency of our homes will be key to reducing carbon emissions and, ultimately, reaching net zero. We know people are willing to make these changes, but we also know they need help and support to do it. With MPs set to debate the future of the Green Homes Grant scheme on Thursday, it’s vital the government understands why the scheme failed — or risk failing to meet its climate targets.
What’s the Green Homes Grant?
The Green Homes Grant was the first new scheme to help people pay for energy efficiency changes to their homes since the introduction of the 2050 net zero target. Homeowners and residential landlords could apply to the scheme to get a voucher covering up to two-thirds of the cost of installing energy efficient improvements in their homes.
However, the scheme was closed to new applications on 31 March this year, and at the time of writing only 14,500 households were able to use the scheme to make energy efficiency improvements.
As the statutory watchdog for energy consumers across Great Britain, we have extensive experience monitoring previous energy schemes and infrastructure projects on behalf of consumers.
Here’s what we’ve heard from consumers who engaged with the scheme and came to Citizens Advice for support.
It’s an opportunity for scammers
Advice about scams was the single biggest issue people contacted us about. We heard from people when they felt unsure about whether an installer (or what an installer told them) was legitimate. Many people who contacted us said they don’t have access to the internet, are older or in other, potentially vulnerable circumstances which made it harder to make decisions about costly changes to their homes.
We also found rogue traders took advantage of confusion about the scheme and were able to make false claims about the process either online or when cold calling at the doorstep or on the phone. Some installers told people they would make the grant application on their behalf, asking them to make up front payments between £200 and £1,000, on the promise the grant would refund them after the work was completed.
Many people also received false communications claiming that free gas boilers could be installed using the scheme. Our analysis revealed that people were being scammed as early as July 2020–2 months before the scheme was even open to applications.
Case study — Diane* was cold called by a company offering loft insulation which she was assured would be covered by the Green Homes Grant. After the work had been completed she was given paperwork to complete and later received a finance agreement for £3,000 which she was unaware of signing up for.
It’s difficult for people to understand
Most people who contacted us struggled to understand the application process and needed support. They were either unable to find installers or couldn’t get the multiple quotes required. Many found it hard to know if they were getting value for money.
While scheme administrators and the Simple Energy Advice website and phone line did help consumers to find authorised installers, people told us recommended traders were either too busy or didn’t operate in the consumer’s area.
Unsurprisingly, when people told us about the improvements they wanted to make to their homes they usually talked about things that are fairly well understood, such as loft insulation, central heating and double glazing. Many of the contacts about central heating were from people who couldn’t afford to fix or replace their faulty gas boiler, despite gas powered heating systems not being available on the scheme. Very few people mentioned low carbon heating options like heat pumps.
The government must ensure plans for public engagement include information about different low carbon heat options, and help people work out which is the right one for their home.
Some people need extra support
Advisers also told us that people who had low digital skills or no or limited access to the internet struggled with finding information and communicating with traders and the scheme by email. Others faced language barriers, needing support to understand energy efficiency measures and low carbon heating options.
Case study — Glenda* was experiencing issues with getting quotes and also required support with completing forms. Her son reported that he felt “that the application process for the Green Homes Grant was discriminatory due to the lack of assistance provided to vulnerable applicants”.
Some consumers experienced lengthy delays, particularly where quotes were queried by the scheme administrator and consumers had to source further information or alternative installers.
People also contacted us because they were confused by traders claiming to be associated with their Local Authority. This was particularly the case when the Local Authority Delivery (LAD) scheme was in operation, and some installers may have been genuinely working with the Local Authority.
Case study — Ali* who struggled with energy costs applied on the 30th September for insulation measures and the voucher was approved mid November. Issues with the application and installer meant new installers had to be found. New quotes could not be sourced until early March and as of the 29th March the quote was being assessed. Over the 6 months and winter period the client also required £400 in fuel vouchers.
The 31st March deadline for applications also caused issues for consumers, especially where they required in-depth advice and were already struggling to source quotes. Some consumers told us how distressed they felt at missing the opportunity to improve the energy efficiency of their home.
What’s next?
The government’s new climate target to cut carbon emissions by 78% by 2035 represents an ambitious step forward. To reach this target, we’ll need to see around 700,000 lofts, 200,000 cavity walls and 250,000 solid walls insulated and 100,000 heat pumps installed in existing homes every year by 2025. Last year just 27,000 lofts, 41,000 cavity walls and 11,000 solid walls were insulated and 26,000 heat pumps installed.
Achieving these targets will be impossible if people can’t work out how to make changes which are right for their homes, are unable to afford improvements or can’t engage with schemes, including if they’re put off by bad experiences.
The government needs to learn from these mistakes and future support must better reflect consumers’ needs. It must seize the opportunity in the forthcoming Heat and Buildings strategy and establish a net zero homes guarantee to give people information, protection and support to help them make their homes warmer, more comfortable, and net zero ready.
*Names have been changed to protect our clients’ anonymity.
