Hundreds of jobs have been lost in the insulation industry this Christmas as a "direct result" of government delays in the introduction of the Green Deal and Energy Company Obligation (ECO), according to the Insulation Industry Forum (IIF).

The IIF said 816 jobs were lost in total, with another 1,182 people receiving redundancy notices over the Christmas period.

This, IIF said, is due to the government's failure to put robust plans in place for the transition between the end of the government's existing insulation subsidy schemes at the end of December, and funding for the Green Deal and ECO, which is not expected to be available until later this year.

The figures follow the IIF's previous warnings that 16,000 jobs were under threat as a result of the changing legislation.

With the current subsidy schemes coming to a close, insulation installation companies have already seen installations for 34,235 homes cancelled due to lack of funding. While government says funding for the Green Deal will be available from 28 January, many in the industry believe the funding will not be widely, readily accessible across the country for several months after this date. Already installations for a further 27,284 homes have been put on hold as there is no funding available.

The IIF said it strongly supports the objectives of the Green Deal and ECO, and its members are actively working towards its success. But IIF spokesman John Sinfield of Knauf Insulation said: "Government policy is directly leading to massive job losses in the industry. So far, 60 companies will be making redundancies, with many handing out their P45s over the Christmas period. The delays to the Green Deal and ECO, and failure to put in place a sensible transition plan, will seriously damage the industry. This is only the tip of the iceberg. Tragically we can expect thousands more jobs to go in the New Year, as the government continues its policy of dither and delay. Until the government realises the extent of the problem, and takes steps towards addressing it, the effects will continue to be felt by the entire industry."