Government to scrap insulation funding policy

Ministers should now work with consumers to put together a realistic new approach that is genuinely good value and helps people to save money by saving energy.’.

The Government has announced that it will provide no further funding to the Green Deal Finance Company and will also stop any future funding of the Green Deal Home Improvement Fund.

Amber Rudd, secretary of state for energy and climate change expressed her desire for industry and consumer groups work with government to develop a new policy framework for energy efficiency: “It’s now time for the building industry and consumer groups to work with us to make new policy and build a system that works”.

Despite this, there was low-uptake of the scheme amid concerns over the high loan rates.

In a statement, the Green Deal Finance Company (GDFC) said it will no longer be able to quote for further Green Deal Plan applications.

The company says this is to ensure that sufficient funds exist to support those applications that have been lodged in recent weeks and are already being processed. The decision was taken in response to the review by Department of Energy and Climate Change of energy efficiency policy and the subsequent decision not to increase the size of the current commercial loan between GDFC and DECC.

“The end of the Green Deal should not be associated with an end to the Government’s support for helping people to achieve warmer homes that are cheaper to heat and better for the environment and we look forward to working with officials on its replacement, but engagement needs to proceed quickly in order that we do not lose momentum or capacity in the market”.

“We are also proud of what has been achieved in only a relatively short time: our business has grown from its inception two years ago to over £60m in plans and applications today”. Many will use this as an opportunity to bemoan the scheme and its failings, but of greater importance is where we go from here. The BPF has welcomed the announcement that those who have existing Green Deal plans will not be affected by today’s action. Our very strong growth over the past year has been driven by their efforts and investment.

The Green Deal offered cashback and incentives for eco-friendly building improvement purchases like double-glazing, insulation and new boilers.

FMB chief executive Brian Berry said the Government’s announcement was the “final nail in the Green Deal’s coffin”.

“The Green Deal was billed by the Government as “the biggest home improvement programme since the Second World War” but has been a flop from start to finish”, Jonathan Reynolds, the shadow energy minister, said.

Daisy Sands, Greenpeace UK head of energy, said: “The green deal was far from being a success, but coming right after the scrapping of the zero-carbon homes target, this latest move suggests ministers are giving up on efficiency”.

She said the Green Deal scheme was finally becoming established just as it was pulled.

The UK Green Building Council has criticised the decision, saying it will leave the energy efficiency industry “battered and bruised”.

“Today’s announcement simply serves to confirm that the Government’s approach to energy efficiency has been a complete and utter failure”.

British homes are among some of the least energy efficient in Europe, which can drive up household fuel bills by hundreds of pounds every year.