The Green Deal energy efficiency scheme failed to deliver for consumers and has not achieved value for money, according to a report from the National Audit Office (NAO).

The scheme, which cost taxpayers £240 million including grants to stimulate demand, has not generated additional energy savings the report concluded.

The NAO said DECC’s design and implementation did not persuade householders that energy efficiency measures are worth paying for.

The report also found that DECC’s design of its Energy Company Obligation (ECO) scheme to support the Green Deal added to energy suppliers’ costs of meeting their obligations.

This reduced the value for money of ECO, but the Department’s information is not detailed enough to conclude by how much, said the NAO.

 ‘Ambitious aim looked good on paper’

Amyas Morse, Head of the National Audit Office, said: “Improving household energy efficiency is central to government achieving its aims of providing taxpayers with secure, affordable and sustainable energy.

“The Department of Energy and Climate Change’s ambitious aim to encourage households to pay for measures looked good on paper, as it would have reduced the financial burden of improvements on all energy consumers.

“But in practice, its Green Deal design not only failed to deliver any meaningful benefit, it increased suppliers’ costs – and therefore energy bills – in meeting their obligations through the ECO scheme. The Department now needs to be more realistic about consumers’ and suppliers’ motivations when designing schemes in future to ensure it achieves its aims.”

> Read the report here