‘Make sure net zero is value for money’

Novelty of aiming for green target no excuse for spiralling costs, says National Audit Office chief

Net zero plans risk wasting taxpayer money, the head of the National Audit Office (NAO) has warned. The spending watchdog has urged ministers not to throw public funds at its goal of reaching net zero by 2050, saying the “novelty” of the problem is no excuse for failing to get the “basics right”. Gareth Davies, the Auditor General, said that the ambitious target could lead to costs spiralling out of control on projects which fail to deliver “significant environmental benefit”.

NET ZERO plans risk wasting taxpayer money, the head of the National Audit Office (NAO) has warned.

Britain’s spending watchdog has urged ministers not to throw public funds at its goal of reaching net zero by 2050, saying the “novelty” of the problem is no excuse for failing to get the “basics right”.

Gareth Davies, the Auditor General, said that the ambitious target could lead to costs spiralling out of control on projects which fail to deliver “significant environmental benefit”.

Writing below, he said the Government must ensure the taxpayer is not shortchanged by policies at a time when families are being squeezed by rising household bills and inflation.

He said the statutory target to achieve net zero greenhouse gas emissions in the next three decades will not be possible without winning over support from the public, and cited the Green Homes Voucher Scheme as a policy which showed the cost of failing to do this.

The scheme, which was scrapped last year after widespread criticism, sought to provide families with funding to insulate their homes.

The NAO later found that the grant, which would have given people up to £10,000 to help make their homes more energy efficient, was poorly administered and plagued by delays, complaints and confusion.

“The next phase of decarbonising the economy needs buy-in from consumers and citizens,” Mr Davies said.

“With energy and fuel costs already high, the Government will need to be clear on how the cost of replacing gas boilers or switching to electric cars will be managed.” He highlighted three “significant challenges” for ministers tasked with implementing policies that will allow the UK to reach its net zero goals. These are “the need for a wholeeconomy response, the critical role of effective public engagement and the importance of costed programmes with disciplined management”.

Earlier this year senior Cabinet ministers urged a rethink of the Government’s net zero plans on the basis that the country faces the biggest cost of living crisis in a generation.

A number of ministers expressed concern that the pace of the planned switch to renewable energy is too fast and is increasing costs for consumers and believe Britain should use more of its own gas in the short-term.

Mr Davies acknowledged that new technologies and innovative policies will be needed to limit the impact of climate change, but warned that the “novelty of the problem must not distract from getting the basics right”.

‘We must be clear on how cost of replacing gas boilers or switching to electric cars will be managed’

An influential committee of MPS recently warned that the Government has no “reliable” idea of how much net zero will cost the nation.

The Commons public accounts committee said in March that ministers have “no clear plan” for how to pay for the transition to electric heating and transport, and they may be overestimating consumer willingness to switch to heat pumps and electric cars.

The Government has “no reliable estimate of what the process of implementing the net zero policy is actually likely to cost British consumers, households, businesses and the Government itself ”, their report said, and was “relying heavily” on the public to choose greener options.