Green Deal funding axed

Published:  23 July, 2015

In light of low take-up and concerns about industry standards there will be no further funding to the Green Deal Finance Company, in a move to protect taxpayers, the Department for Energy & Climate Change announced on 23 July.

The government will work with the building industry and consumer groups on a new value-for-money approach, said Energy & Climate Change Secretary Amber Rudd.

Ms Rudd also announced that the government will stop any future funding releases of the Green Deal Home Improvement Fund.

Future schemes must provide better value for money, supporting the goal of insulating a million more homes over the next five years and the government’s commitment to tackle fuel poverty, she said.

This decision has no impact on existing Green Deal Finance Plans or existing Green Deal Home Improvement Fund applications and vouchers.

This announcement comes as part of government’s wider review of energy policies. Ms Rudd has confirmed that her first priority is to get spending under control.

“We are on the side of hardworking families and businesses – which is why we cannot continue to fund the Green Deal,” said Ms. Rudd.

“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.

“Together we can achieve this government’s ambition to make homes warmer and drive down bills for 1 million more homes by 2020 – and to do so at the best value for money for taxpayers.”

The government has commissioned an independent review led by Peter Bonfield to look at standards, consumer protection and enforcement of energy efficiency schemes and ensure that the system properly supports and protects consumers.

Current policies including the Energy Company Obligation (ECO) scheme will continue to provide support this year to low-income and vulnerable households, reflecting the fact that ECO delivered 97% of home improvements in the last two years.

The Department for Energy & Climate Change will work in partnership with the Department for Communities & Local Government to improve the UK’s existing housing stock. The longer-term future of the Energy Company Obligation scheme will be part of these discussions around a new, better-integrated policy.