Jessica Luper 24 July 2015

Green Deal 'dead in the water' as funding comes to an end

In light of low take-up and concerns about industry standards the Government will no longer provide funding to the Green Deal Finance Company, it was announced yesterday.

The Green Deal was launched in 2013 to much fanfare in a scheme allowing people to pay for home improvements over time, through their electricity bill.

Now, energy and climate change secretary Amber Rudd has confirmed the Government will stop any future funding releases of the Green Deal Home Improvement Fundwork, saying it will work with the building industry and consumer groups on a new 'value-for-money' approach.

She said that 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.

'We are on the side of hardworking families and businesses – which is why we cannot continue to fund the Green Deal,' Said 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.'

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

Chief executive Julie Hirigoyen said: 'With each passing day, this Government puts an end to another green policy. Government's strategy on dealing with high energy bills through home energy efficiency is now dead in the water.

'While the Green Deal was by no means perfect, the principle of enabling households to install energy saving measures without paying upfront costs was sound. The irony is that the scheme was finally becoming established and the number of plans was growing.'

The decision will not impact on existing Green Deal Finance Plans or existing Green Deal Home Improvement Fund applications and vouchers.

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