The Secretary of State today announced that there will be no further funding to the Green Deal Finance Company, in a move to protect taxpayers. We’ve put together this blog to answer your questions.
What does this mean for the future of the Green Deal?
• In light of low take-up and concerns about industry standards there will be no further funding to the Green Deal Finance Company.
• We will also stop any future funding releases of the Green Deal Home Improvement Fund.
• This decision has no impact on existing Green Deal Finance Plans or existing Green Deal Home Improvement Fund applications and vouchers.
What does today’s announcement mean for the Green Deal Finance Company (GDFC) and new Green Deal finance plans?
• Green Deal finance plans are offered by approved providers who access a line of credit from the Green Deal Finance Company (GDFC). It is for the GDFC to decide whether to close to new finance plan applications and how to manage its own accounts.
• The Green Deal’s Pay As You Save framework remains in place should other finance providers wish to come forward to enter the market.
Why is the Government stopping its funding to the Green Deal Finance Company?
• There will be no further to the Green Deal Finance Company because of low take-up and concerns about industry standards, ensuring taxpayers are protected.
• The Government will work with the building industry and consumer groups on a new value-for-money approach.
What does this announcement mean for consumers who already have Green Deal Finance Company plans?
• Green Deal plans that are in place will continue as normal. There will be no impact on those who have already taken out plans.
• Bill payers in properties with Green Deal Plans will still need to repay the loans and this money will continue to be collected via their electricity bill.
What does this mean for the Home Improvement Fund?
• We are stopping any future funding releases of the Green Deal Home Improvement Fund.
• The latest ‘two measures’ offer will close to applications on 30 September 2015 or when the remaining £4 million of funding run out – whichever happens sooner.
• Existing applications and vouchers will not be affected. Customers who want to redeem their voucher must complete the installation and submit the documents required to redeem their voucher to the Green Deal Home Improvement Fund Administrator on or before their voucher expiry date.
What does this mean for the Green Deal Communities scheme?
• Some Local Authorities still have funding available through Green Deal Communities. We will ensure this remaining funding is put to the best possible use and provides energy efficiency measures to benefit energy inefficient households across England.
What does this mean for the future of ECO?
• The ECO scheme will continue to run as normal until March 2017.
• The future of the ECO scheme from 2017 onwards will be part of discussions around a new, better integrated policy for home energy efficiency
Has the Green Deal been a total flop?
• We’ve seen many success stories come out of Green Deal, but uptake has been lower than expected.
• By the end of May 2015 there were nearly 15,600 Green Deal finance plans in progress, as well as over 27,000 energy efficiency measures installed in homes across England and Wales thanks to the Green Deal Home Improvement Fund. The total value of measures installed under the Home Improvement Fund is £114m.
• But now it’s time for the building industry and consumer groups to work with us to make new value-for-money approach.
How will people finance energy efficiency improvements?
• We’re working with the building industry and consumer groups on a new value-for-money approach.
• In the meantime, help is still available to those who need it most through the Energy Company Obligation (ECO) scheme.
• More than 1 million homes have already benefitted from energy efficiency improvements – such as new boilers and insulation – through the ECO scheme.
What does this mean for people in Scotland and Wales?
• The Green Deal Finance Company operates in England, Scotland and Wales. Plans that are in place will continue as normal.
• The Green Deal Home Improvement Fund was open to application from England and Wales. Existing applications and vouchers will not be affected.
Will other energy efficiency schemes in Scotland be affected?
• Powers to introduce other tax-payer funded energy efficiency schemes are devolved to Scotland – it is up to the Scottish Government to decide.
47 comments
Comment by lee cattermole posted on
How much has the GDFC cost the public purse?
Comment by David Hurst posted on
Add to that the massive cost to all in the industry!
Comment by Liz posted on
I had a new boiler fitted by British Gas. My bills went up and the output of heat went down. Making it so my gas consumption is more than the average family in my area. And there is only my husband and I grandparents who's house is so cold now are gran children can not stay. 17 degrees in summer. Nothing in winter. We sit here with jumpers on. No one can make British Gas fix the problem. The energy ombudsman refused today. He said he thinks the boiler is faulty. And they do not deal with boilers. Trading standards say in Wales no help if it's free and your on benefit. My husband works. I have been ill for two years. My old boiler kept us warm. But was 15 years old. This one cannot heat our house.
Comment by Sue posted on
Does this affect RHI?
Comment by Green Deal & ECO Team posted on
Hi Sue - no, this does not affect RHI.
Comment by Alex Layton posted on
So why is the OFGEM Apply Now button for Domestic RHI disabled?
Comment by Green Deal & ECO Team posted on
Hi Alex - we’ve checked the link and it appears to be working fine. If you have any further issues, we suggest you contact Ofgem directly.
Comment by Kenneth Campbell posted on
The Green Deal Finance Company has been badly run since the beginning.
The fact that DECC has stopped pouring taxpayers money into an organisation that was going bust is actually a good thing.
The number of Green Deal Plans that were actually financed through other means than the Green Deal Finance Company is quite telling.
As the Green Deal Framework is continuing these alternatively funded plans could just take over.
What we need is Amber Rudd to get in front of the media and back the continuation of the Green Deal Scheme publicly otherwise the media will spin the Green Deal to its death.
Comment by Dave clarke posted on
What does this mean for Green Deal Assessments?
Comment by Green Deal & ECO Team posted on
Hi Dave - Green Deal assessments have a value beyond being used to support Green Deal plans as they provide people with information about how to make their homes more energy efficient. This means that assessments can properly inform homeowners about which efficiency measures would help to make their homes warmer and reduce their bill. Green Deal assessments also remain a way people can qualify for energy efficiency measures under ECO.
Comment by Steve W posted on
What a crock of rubbish.
The foundation to the GD assessment, the RdSAP calc / EPC, is fundamentally flawed using broad assumptions and produced largely by the inept.
The GD Assessment itself is also not fit for purpose. The software is dire and again woefully inaccurate and again generally produced by the inept. No one with any credibility qualified as a GDA as the who thing was just a PPI scam waiting now to happen.
Don't even start with the Non Domestic Green Deal. The Government should compensate all those that paid thousands to get qualified and then never did an assessment. Utter joke. Bit like our Government and its energy policies.
Comment by Robin Baker posted on
UK government policy for renewables is a shambles. The green deal in particluar has been very disappointing as it was the big flagship idea to upgrade the housing stock that will still be providing the majority of housing in 2050. How can the industry plan and operate efficiently when the policy keeps changing? Yes we must make the best use of public funds to achieve our emissions targets but this inconsistent policy is completely undermining public and industry faith in the various programmes. As far as I am aware increasing energy efficiency is the most cost effective followed by onshore wind farms so why is the funding being cut for this?
Comment by Green Deal & ECO Team posted on
Hi Robin - people need a system that they can trust and that provides value-for-money. That’s why we’re going to work with the building industry and consumer groups on a new approach, supporting the goal of insulating a million more homes over the next five years and our commitment to tackling fuel poverty.
This decision has no impact on existing Green Deal Finance Plans or existing Green Deal Home Improvement Fund applications and vouchers.
Comment by Jackson Black posted on
I hope they are going to refund the surveyors all the money they spent as home inspectors then Greendeal assessors. It must serve as a warning to anyone else contemplating training in any other future schemes the government may come up with. Don't touch it with a bargepole. It will cost you thousands
Comment by Andrew Cooper posted on
You've killed the turkey!
Comment by Jules posted on
Where do people go to get the money back for the 20000 green deal reports carried out in good faith for the promised gdhif money for this year? Industry can't refund so I guess there will be a government refund policy?
Comment by Green Deal & ECO Team posted on
Hi Jules - a refund towards the cost of a Green Deal assessment has always been subject to a successful voucher application. Existing applications and vouchers are not affected by this decision.
Green Deal assessments have a value beyond being used to support Green Deal plans as they provide people with information about how to make their homes more energy efficient. This means that assessments can properly inform homeowners about which efficiency measures would help to make their homes warmer and cut their bill. Green Deal assessments also remain a way people can qualify for energy efficiency measures under ECO, and are required in order to access the domestic Renewable Heat Incentive.
Comment by Gareth posted on
What about all those companies that have spent thousands on green deal reports for the next round of Gdhif??
Comment by Green Deal & ECO Team posted on
Hi Gareth - a refund towards the cost of a Green Deal assessment has always been subject to a successful voucher application. Existing applications and vouchers are not affected by this decision.
Green Deal assessments have a value beyond being used to support Green Deal plans as they provide people with information about how to make their homes more energy efficient. This means that assessments can properly inform homeowners about which efficiency measures would help to make their homes warmer and cut their bill. Green Deal assessments also remain a way people can qualify for energy efficiency measures under ECO, and are required in order to access the domestic Renewable Heat Incentive.
Comment by Keith Lane posted on
The whole process has been open to abuse and fraudulent activity, with many in the supply chain making lots of money out of dodgy energy assessments. I can foresee mis-selling claims being made in years to come.
Comment by mike posted on
thank you amber rudd for putting me back on the dole
Comment by Jane Needham posted on
Heart transplant in full swing – old diseased heart taken out, and the surgeon asks for a new one to be passed to him, assistant surgeon says “ the new heart hasn’t yet been found for the transplant, we thought we’d just the take old one out for now and then we can put the new one in when we find it”
What happens? the patient dies. That patient is my business!!!!!!
This is what the effects of yesterdays announcement on Green Deal has done. We are a small indepedendent Green Deal Advice Organisation, and are not equipped to cope, like many others, with an instant loss of 1/3 of our earnings, plus the loss of trust from our customers, for whom we have done Green Deal Assessments in good faith, who now can't access funding. If you are made redundant form a business, at least you wold get some redundancy pay. All we have is a kick in the teeth, when we have tried to make Green Deal work, like many other small businesses, despite willy nilly policy changes so often it became a joke having leaflets printed as they were out of date a week later.
Comment by Steve posted on
So how do I sue the government as a Greendeal Assessor who paid thousands to train and achieve accreditation I have now had my livelihood taken from me overnight with no warning Surely they can't get away with this
Comment by Richard W posted on
Are the suggestions that the RHI will be ending in April 2015 true
Comment by Clive Lawthom posted on
UNBELIEVABLE first I nearly lose my family home over the solar feed in tariff being slashed in 2012 then shelled out thousands to re train for dea / gda assessments and now this AGAIN for sale 1 life rarely put to good financial use an excellent time waster and has a No of certificates with the promise of a secure future. HA! Any takers ??? sale price 1 length of rope. Cheers Amber Rudd how's your sleeping patterns ???
Comment by Mike posted on
Thousands of people will lose therye jobs.installers ,scaffolders,gdea/dea,green deal companies,small family run companies.yet there is no mention of job losses in the press.
The conservative want unemployed people to train to develop new skills ,most people in this industry have spent a lot of money and time training to keep in full time employment and now without any notice they face the prospect of being put on the dole.
Who turn is it next?
Comment by Paul Grimoldby posted on
What is meant by the phrase "concerns about industry standards". Can they be more specific!! Is this a reference to ECO fraud, if so what has that to do with Green Deal funding!! Is this to do with the quality of GDAs/DEAs? What are the "concerns" that relate specifically to GD funding or is this an excuse?
Comment by Green Deal & ECO Team posted on
Hi Paul. It’s essential that we have a system that consumers can trust. Since Jan 2013, 11% of Green Deal assessors and 14% of Green Deal installers have been suspended or withdrawn from the scheme due to non-compliance with the Green Deal scheme requirements.
The Green Deal ORB has reported a total of 93 issues to Trading Standards to 31 May 2015. We’re also aware of 155 cases of unauthorised use of the Green Deal Quality Mark up to 31 May 2015 and of 93 issues reported to Trading Standards by the Green Deal ORB.
Going forward we need system that properly supports and protects consumers which is why we’re conducting an independent review.
Comment by dave21 posted on
This whole greendeal thing was destined to fail from the day it started. Two many companies sprung up overnight thinking it would be easy money. little did they no. If the greendeal had been managed and promoted better. and the gd installers had better training maybe things would be different. I worked on u. h I s and then eco up until June until the money had been cut that mutch the insulation company could not afford to do the work for what they were getting paid.Total shambles!!!. Feel really sorry for all the GDAs and DEAs..
Comment by Ken Gresty posted on
Solid wall insulation surely has not finished. What is the future (there are only 7.2 million solis wall houses in UK )?
Any time scale/
Comment by Green Deal & ECO Team posted on
Hi Ken. The vast majority of the Green Deal Home Improvement Fund vouchers that have not yet been redeemed are for solid wall insulation (SWI). As of the end of June this year, there was a total of £57m in active applications yet to be redeemed – which means much more SWI work in the pipeline.
The Government also continues to support SWI installations through ECO, where it has set a SWI minimum under the existing ECO obligation targets. Under ECO (2015-17) at least 4MtCO2 of carbon emissions savings must be achieved through the delivery of solid wall measures and this must be met by March 2017.
Comment by Jason posted on
How about also working with Local Authorities? The pre-curser to the Green Deal "Pay as you save" worked because of LA participation/design, the Green Deal was designed to be industry led and was thrust upon LA's by them as soon as it became clear it was a failing concept. LA's (unlike some of the early industry players) have made a huge effort to make the most of it. Local Authorities should not be blamed and should be involved in designing the new scheme as we only need schemes like this due to market failure.
Comment by Daniel O'neill posted on
What now for all the people like me who have invested a lot of time energy and money to work with the green deal scheme?.
Comment by Bruce Vowler posted on
What now for my single brick house insulation !!!!!!!! another cold winter with extra fuel bills after all the hard work put in by assesors and insulation company to get me up to application stage and now all for nothing.I feel sorry for all those who may be now losing their jobs and monies through no fault of there own.I still have my house they may not be so lucky.
Comment by J Cobby posted on
I personally think that we need to be positive about the whole business, we can still use our talents as surveyors, we need to team up with a finance company so that we provide a means of finance to the customer on very low rates some offer 0 percent finance. At the end of the day quite a number of houses in this country still have to be insulated to prevent heat loss and we need to convince the client that prevention will save them money in the long run. Convince the client that he is losing cash by doing nothing and they will soon agree to any suggestions we may have JDECL.
Comment by john standfield posted on
Correct me if i'm wrong but according to my calculations...the number of homes insulated so far will be 42,600. If the annual saving on each bill was £300, the total is £12,780,000, so in 9 years that amounts to £115,020,000 !!! So if the value of measures so far comes to £114 million.....surely the whole scheme pays for itself?? I live in a park home which costs a fortune to heat.....and it just goes through the wall.!!!
Comment by Theresa Beggs posted on
I'm looking for some advice please. We have recently had a new boiler installed into a 1930's house we recently bought using the Green Deal Scheme. It was just installed last week and today we have been told that funding has been pulled so now we need to pay the full £2600. This was a complete shock to us and it's a huge amount of money for us to pay out at short notice. It is an utter disgrace that we have been left in this situation and now may need to get into debt to pay for this. As a Government funded scheme, applicants should have been given warning that this was in the pipeline - there is now way that this was decided on whim.
The only reason we bought a house that needed a lot of work done was because the Green Deal would have saved us a lot of money upfront, and it was ideal for our situation. I would appreciate if someone at DECC could contact me, or give me a name/number to discuss this further.
Thank you, Theresa Beggs
Comment by DECC posted on
Theresa, thank you for your comments. You won’t be affected if your Green Deal improvements have already been made and you’re making repayments through your electricity bill. Your Green Deal provider will still be responsible for any warranties or maintenance specified in your contract with them.
Comment by Daniel Bristol posted on
I paid £140 assessment fee 6 weeks ago & was waiting for a company to quote, can I get that my £140 back seeing as it would have been refunded when I went ahead with the improvements?
Comment by Iqbal posted on
I was thinking of applying for a grant to install an external insulation for my solid wall house. Would I be eligible for this scheme or is this closed wie?
Comment by Margaret Leach posted on
Can you clarify how many Green Deal complaints are being dealt with by Green Deal Ombudsman and why resolution takes so long?The Green Deal has done nothing to protect the consumers. Unscrupulous Green Deal Providers have used the initiative to earn a "fast buck". Unfortunately this has had a profound effect on reputable companies.
Comment by S.Garrido posted on
Hi, i am currently trying to complete a RHI application for an air source heat pump that was installed a couple of months ago, the application requires that i provide a Green deal report. I as originally told i was only going to need an EPC report which was completed a month ago. Why do i need a green deal report if the heat pump is already installed and I don't plan to install anything else in the property? Surely now that the Green deal funding has been stopped an EPC report should be sufficient and there is no benefit to anyone on going through the extra expense ( was quoted £168 for the report which includes an EPC report that i already have and i have already paid for? Unfortunately the website does not allow you to submit the application without the green deal report. Is this going to change? Thanks
Comment by C Cooper posted on
Iv'e just called Q&A insurance regarding logging a recently finished property and they have told me that they are not issuing any more insurance backed warranties for green deal work???
Comment by DECC posted on
Daniel, Green Deal assessments have a value beyond being used to support Green Deal Plans as they provide you with extensive information about how to make your home more energy efficient. For example Green Deal assessments continue to be a route into ECO, which has helped over 1 million homes since it launched in 2013. You can find out whether you qualify for ECO by contacting your energy supplier.
Comment by Meiling Su posted on
what do you mean by concern of industry standard?
Comment by Simon Barrett South West Energy Services posted on
If those that decided on being GDA could not see the massive failings potentially in the plan then more fool them, I still have the Stroma green deal oversight body poster on my wall from when they sent a "sales rep" in to sell the training ........they made some money.
Those that think a £1000 to £1500 course can buy them an income in the world we live today ......well they are bigger dreamers than Greg Barker who thought the whole thing would work in the first place.
Comment by Mary R posted on
I'm in a predicament now where I put a deposit down and signed a contract for solid wall insulation expecting the next round of funding to be released..... and then the government pulled the plug on it! I am now in limbo with no green deal scheme and I'm sure the provider has built the grant into his prices so now I'm in a lose/lose situation.
Can you offer advice on how people in this situation should commence.