Offer stamp duty discounts for energy efficient homes, MPs suggest

The UK Government should come up with new ways to encourage householders to install energy-saving measures following the poor performance of the Green Deal scheme, MPs have suggested. The Energy […]

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By Priyanka Shrestha

The UK Government should come up with new ways to encourage householders to install energy-saving measures following the poor performance of the Green Deal scheme, MPs have suggested.

The Energy and Climate Change Select Committee suggests offering stamp duty discounts as they believe the flagship energy efficiency scheme has caused “frustration and confusion” for both consumers and businesses.

Only 4,000 Green Deal plans have so far been initiated, according to the Committee’s new report, due to a “combination of financial, communication and behavioural barriers”.

Under the scheme, consumers can borrow cash to install energy-saving measures efficient boilers, double glazing and cavity and loft insulation.

The Committee believes the Green Deal interest rates attached to the loan is high, which is putting off potential customers as many householders are finding cheaper financial help elsewhere.

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Chair Tim Yeo MP said: “The interest rates attached to the Green Deal are simply not financially attractive enough for many households to go to the hassle of setting one up.

“Stamp duty discounts and variable council tax rates could be used to broaden the appeal of energy efficiency improvements and make them even more of a money saver for households. Extra incentives certainly need to be considered as the Government’s flagship pay-as-you-save finance scheme has only delivered a fraction of the expected benefits so far.”

Energy Secretary Ed Davey said the Government “shares the Committee’s ambition” to drive energy efficiency and is on track to reach its target of improving the energy efficiency of one million homes by March 2015.

He added: “£540 million has been committed and as of June we have improved over 750,000 homes.”