Latest Public Sector News

12.06.12

Green Deal insulation projects to plummet

The number of loft insulations under the Green Deal is set to fall dramatically, the Government’s impact assessment suggests.

The policy aimed to transform energy efficiency in 14 million homes and create 65,000 jobs, but the number of loft insulations will fall by 83% by 2013, figures show. The number of cavity wall installations will also fall by 43%.

These predictions are revised from the initial assessment, which forecasted a fall of 93% for lofts being lagged and 67% decrease for cavity walls insulation.

A Decc spokesperson told the Guardian: “The loft and cavity insulation industry has benefitted from government subsidies for many years, with the costs borne by bill payers. There is far less need to continue subsidising them.

“By the end of the 2012, around 60% of lofts will be fully insulated and only around 200,000 lofts will be left with no insulation at all. It is therefore inevitable that the number of loft insulations being delivered will fall.

“We have limited resources and we therefore have to make choices. Continuing to subsidise affordable measures such as lofts and cavity walls at current levels through Eco ... could [have] severe implications for consumer bills. Public subsidy must be targeted where it is needed most.”

Climate Energy welcomed improvements to the consumer protection elements of the Green Deal, but urged Decc to reconsider its support promoting the scheme.

Garry Worthington, head of Green Deal, said: “We are disappointed that the Government remains undecided about its £200m fund to kick-start the scheme. We think the current plans to use this purely as a cash-back incentive over the next two years are mis-guided and that could be used much more creatively to support regional schemes, local innovations, jobs, communities and delivery to give take-up an initial boost.” 

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