The House of Commons’ Public Accounts Committee (PAC) has accused the UK Government of taking a “blinkered approach” when setting up its Green Deal energy efficiency scheme.

The committee’s report said ministers had spent £240 million of public money creating the scheme but only 14,000 Green Deal loans were made, with the system being setup to cope with 3.5 million loans.

Forecasted demand for the scheme was “excessively optimistic”, the committee said.

MPs on the committee also warned that ministers did not have the right information to measure the effectiveness of the Energy Company Obligation (ECO) scheme.

Public was ‘ill-served’

Meg Hillier, Chair of the PAC, said: “The Government rushed into the Green Deal without proper consideration of concerns about its weaknesses.

“Not enough work went into establishing the scheme’s appeal to households, nor to its implementation, nor to examining the experience of governments setting up similar schemes overseas.

“This blinkered approach resulted in a truly dismal take-up for Green Deal loans and a cost to taxpayers of £17,000 for every loan arranged. Savings in CO2 were minimal.

“There is no doubt householders and taxpayers in general have been ill-served by these schemes and the Government must learn from its mistakes to ensure they are not repeated in this or indeed any other policy areas.”

> Download the report