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.