Abolition of 拢3bn domestic energy retrofit scheme is 鈥榤isguided鈥�, construction firms say
Construction firms have criticised the government鈥檚 decision to scrap the troubled Green Homes Grant energy efficiency improvements scheme later this week.
Business secretary Kwasi Kwarteng said the scheme, which spent just a fraction of the 拢1.5bn allocated to it in the first six months of its operation, would now close to new applications from 31 March.
The decision, which the Department for Business, Energy and Industrial Strategy said followed a 鈥渞eview鈥�, comes just a week after MPs criticised the government for its mismanagement of the scheme.
Figures from the department show it is on course to have spent just 拢300m by the time of its closure. Implementation of the scheme was described as .
The government had already said that unspent cash would not be rolled over into next year.
Overall, the Green Homes Grant had 拢3bn allocated to it over two years, following its initial announcement last summer and the government鈥檚 .
The government said that it was instead making an extra 拢300m available to local authorities to undertake energy efficiency upgrades. It was not immediately clear if that was on top of the .
Brian Berry, chief executive of the Federation of Master Builders, said the 鈥渕isguided鈥� scrapping of the Green Homes Grant sent the wrong message to consumers and builders, and 鈥渨ill harm the UK鈥檚 desire to be seen as a global leader in tackling climate change鈥�.
He said the government should instead have addressed the flaws in the scheme, branding it 鈥渁nother example of a stop-go green initiative that undermines, rather than creates, certainly for both the public and installers鈥�.
Environmental groups had already described the grant scheme as woefully insufficient to address the scale of the challenge needed. The cost of improving the energy efficiency of the UK housing stock is estimated to run in to tens of billions of pounds.
Harriet Lamb, chief executive of climate solutions charity Ashden, said the stop-start history of the government鈥檚 commitment to providing grants for making homes more energy efficient was undermining confidence within the industry.
She added: 鈥淐ompanies that have taken on the retrofit challenge are scared of entering the market when the government has pulled the rug out from under their feet too many times. The government has created a self-fulfilling prophecy of failure.鈥�
No comments yet