The UK Government has decided to pull the plug on its flagship home energy efficiency scheme.
DECC said it will no longer fund the Green Deal Finance Company (GDFC) due to low take-up and concerns about industry standards, adding it wants to “protect” taxpayers.
Under the scheme, householders can get loans to make their homes more energy efficient and reduce bills with no upfront cost. They are repaid through energy bills.
There will also be no more funding for the Green Deal Home Improvement Fund cash back scheme, which gives money back to householders for energy-saving improvements.
Energy Secretary Amber Rudd said: “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 one million more homes by 2020 – and to do so at the best value for money for taxpayers.”
DECC added it will work with the building industry and consumer groups on a new “value-for-money approach”.
By the end of June 2015, measures had been installed in around 10,000 properties using Green Deal finance, with an additional 5,600 plans currently in progress.
Mark Bayley, GDFC’s Chief Executive said today’s decision won’t have an impact on existing applications or vouchers.
He added: “We have taken this step to make sure we can meet all our expected liabilities and to have an orderly run-down of new business while protecting existing plan holders and those whose applications are eligible and have been approved.”