Government to stop funding Green Deal due to low take up rates and concerns over taxpayer money
After not enough people took up the government on its offer, it quietly announced today that funding for the Green Deal, its household energy efficiency programme, has been cut.
Read more: Green Deal faces criticism with uptake of only 1,612 last year
Under the scheme, households could use cheap long-term loans to make their homes more energy efficient and cut bills, which were paid with interest through energy bills.
In a statement Amber Rudd, the secretary of state for energy and climate change, said:
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 help protect taxpayers.
When the government launched the scheme last May, government minister Greg Barker said it would be the “biggest home improvement programme since the second world war".
While the policy was widely lauded by Conservatives, not many people were aware of the policy:
The Green Deal is finally trending… how many years did that take then?
— Robyn Wilson (@RobynFWilson) July 23, 2015
The announcement came as part of the government’s wider review of energy policies. For her part, Rudd has said her first priority is to get spending under control.
Read more: Critics question uptake of the Green Deal financing scheme
Amber Rudd added:
We are on the side of hardworking families and businesses – which is why we 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.
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.