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24/07/2015

Green Deal funding to end

Words: Laura Edgar
Energy secretary Amber Rudd

Energy secretary Amber Rudd says the Green Deal Finance Company will receive no more funding, “in a move to protect taxpayers”.

Instead, said Rudd, the government would work with the building industry and consumer groups on a “new value-for-money approach”.

Additionally, future funding will stop on the Green Deal Home Improvement Fund.

The decision, the government said, would not have an impact on existing Green Deal Finance Plans or Green Deal Home Improvement Fund applications and vouchers.

A government press release states 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”.

Rudd said the government is on the side of “hardworking families and businesses” and therefore cannot continue to fund the Green Deal.

“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,” she said.

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

The British Property Federation is urging the government to ensure that removal of this funding does not hit “the ability of property owners to comply with the incoming Minimum Energy Efficiency Standards”.

Ian Fletcher, directory of policy (Real Estate) at the federation, said: “The end of the Green Deal will impact on many other policy areas including the Minimum Energy Efficiency Standards (MEES) passed by the previous government, which was designed to dovetail with a pay-as-you-save energy-efficiency scheme.

"We are concerned that without a functioning pay-as-you-save scheme, the premise set out in the regulations that meeting energy efficiency targets should come at no upfront cost to the property owner is now in jeopardy.”

Fletcher added that the end of the Green Deal should be associated with the government’s support for helping people to achieve warmer homes for less as well as better for the environment.

“Engagement needs to proceed quickly in order that we do not lose momentum or capacity in the market,” he concluded.

Image courtesy of the Prime Minister's office

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