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No UK households have completed green deal process, figures show No UK households have completed green deal process, figures show
(34 minutes later)
Not a single household in the UK has completed the process of making their home more energy efficient under the government's flagship green deal five months after its launch, according to figures released on Thursday.Not a single household in the UK has completed the process of making their home more energy efficient under the government's flagship green deal five months after its launch, according to figures released on Thursday.
Nearly 40,000 'assessments' - when experts visit properties to see what measures would be best undertaken – have taken place, but only four households are registered in the system as finalising green deal plans, whereby works are installed and paid for by the scheme's financing. A further 241 households have confirmed they would like to proceed with financing.Nearly 40,000 'assessments' - when experts visit properties to see what measures would be best undertaken – have taken place, but only four households are registered in the system as finalising green deal plans, whereby works are installed and paid for by the scheme's financing. A further 241 households have confirmed they would like to proceed with financing.
But not a single household has what is known as a 'live' green deal plan, where the works have been undertaken and details of the repayments on electricity bills have been passed to its energy supplier. The figures include data up to 16 June.But not a single household has what is known as a 'live' green deal plan, where the works have been undertaken and details of the repayments on electricity bills have been passed to its energy supplier. The figures include data up to 16 June.
More than 5,000 people have registered for the green deal scheme's "cashback", with 968 being paid a total of just over a quarter of a million pounds. Virtually all of the cashback payments – 99% of them – were for boiler upgrades, with just one for loft insulation and one for solid wall insulation. Last year, climate minister, Greg Barker, wrote in the Guardian that: "Eight million solid wall homes have had no affordable solution to insulate. The green deal will change that."More than 5,000 people have registered for the green deal scheme's "cashback", with 968 being paid a total of just over a quarter of a million pounds. Virtually all of the cashback payments – 99% of them – were for boiler upgrades, with just one for loft insulation and one for solid wall insulation. Last year, climate minister, Greg Barker, wrote in the Guardian that: "Eight million solid wall homes have had no affordable solution to insulate. The green deal will change that."
Barker said on Thursday that the reason for the small number of green deal plans in their final stages was because few companies have been setup to offer the finance. "The first wave of green deal finance has been available through a very limited number of companies, five in total, so you wouldn't have expected them [householders] to go all the way through the process. But there are another 50 companies coming through the process [to offer finance] and the green deal finance company expects as many as 60 by the end of the year – that would be transformational."Barker said on Thursday that the reason for the small number of green deal plans in their final stages was because few companies have been setup to offer the finance. "The first wave of green deal finance has been available through a very limited number of companies, five in total, so you wouldn't have expected them [householders] to go all the way through the process. But there are another 50 companies coming through the process [to offer finance] and the green deal finance company expects as many as 60 by the end of the year – that would be transformational."
But there was more substantial progress on helping the fuel poor to benefit from insulation – more than 80,000 households had energy efficiency upgrades under a parallel scheme called the energy company obligation (ECO). Unlike the green deal, whereby homeowners must take out a loan to cover improvements, paid back through additions to energy bills, the ECO requires energy companies to fund improvements for lower income households.But there was more substantial progress on helping the fuel poor to benefit from insulation – more than 80,000 households had energy efficiency upgrades under a parallel scheme called the energy company obligation (ECO). Unlike the green deal, whereby homeowners must take out a loan to cover improvements, paid back through additions to energy bills, the ECO requires energy companies to fund improvements for lower income households.
Greg Barker added: "It's only just getting started, but the early signs are encouraging. 38,259 green deal assessments is also a clear sign that many consumers genuinely want to make their homes more efficient; but we are keen to do more."Greg Barker added: "It's only just getting started, but the early signs are encouraging. 38,259 green deal assessments is also a clear sign that many consumers genuinely want to make their homes more efficient; but we are keen to do more."
Consumer experts expressed concern at the initial take-up for the scheme.Consumer experts expressed concern at the initial take-up for the scheme.
Which? executive director Richard Lloyd said: "These figures reveal a worryingly slow start for the green deal. The government must ensure consumers have detailed information about the companies offering green deal finance and their packages, so they can decide whether it represents good value for them.Which? executive director Richard Lloyd said: "These figures reveal a worryingly slow start for the green deal. The government must ensure consumers have detailed information about the companies offering green deal finance and their packages, so they can decide whether it represents good value for them.
Mike O' Connor, chief executive of consumer watchdog Consumer Futures, said: "A slow start should have been expected for the green deal, but it has clearly not fired consumers' imaginations and in particular people are not convinced by the green deal financing model."Mike O' Connor, chief executive of consumer watchdog Consumer Futures, said: "A slow start should have been expected for the green deal, but it has clearly not fired consumers' imaginations and in particular people are not convinced by the green deal financing model."
"With rising energy prices the top consumer worry, measures that help people make their homes more energy efficient are vital to help save money on bills. However as with any financial product people should consider their own personal and financial circumstances, tread carefully, check the small print and shop around.""With rising energy prices the top consumer worry, measures that help people make their homes more energy efficient are vital to help save money on bills. However as with any financial product people should consider their own personal and financial circumstances, tread carefully, check the small print and shop around."
The Guardian revealed on Thursday that energy suppliers are still struggling with the IT systems and legal arrangements they need to offer households insulation and other improvements under the green deal.The Guardian revealed on Thursday that energy suppliers are still struggling with the IT systems and legal arrangements they need to offer households insulation and other improvements under the green deal.
Concerns surrounding the policy have prompted a group of construction companies, led by the Green Building Council, to write to Ed Davey, the energy and climate secretary, energy minister Greg Barker and shadow energy secretary Luciana Berger, asking for a cross-party consensus to salvage and improve the green deal. They also urge strengthening measures, such as a discount on stamp duty or council tax for households taking up green deal offers.Concerns surrounding the policy have prompted a group of construction companies, led by the Green Building Council, to write to Ed Davey, the energy and climate secretary, energy minister Greg Barker and shadow energy secretary Luciana Berger, asking for a cross-party consensus to salvage and improve the green deal. They also urge strengthening measures, such as a discount on stamp duty or council tax for households taking up green deal offers.
"Today's figures are a disaster but not unexpected – the Green Deal's potential has been absurdly overhyped by Ministers to cover the fact they didn't have a comprehensive strategy for insulating the UK's cold, expensive to heat homes.
Dave Timms, Friends of the Earth's warm homes campaigner, said in response to the figures: "Saving energy is vital for making energy bills affordable and tackling climate change, but with only four households taking up loans since the green deal began, the government's efforts are falling embarrassingly short. Lower interest rates, more incentives and tough regulations on landlords to improve the worst insulated rented homes would all increase the take-up of energy efficiency measures."