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Pay delay hits Green Deal providers | Pay delay hits Green Deal providers |
(about 3 hours later) | |
Companies carrying out work under the Green Deal Home Improvement Fund (GDHIF) say delays in payment are ruining their businesses. | Companies carrying out work under the Green Deal Home Improvement Fund (GDHIF) say delays in payment are ruining their businesses. |
Vouchers worth up to £7,600 should be paid by the government within 10 days. | Vouchers worth up to £7,600 should be paid by the government within 10 days. |
Contractors have told Radio 4's You & Yours they are stopping work and laying off staff because they have been waiting up to four weeks. | |
The Department for Energy and Climate Change has blamed delays on the need to check the validity of applications. | The Department for Energy and Climate Change has blamed delays on the need to check the validity of applications. |
The GDHIF closed in July, when vouchers to the value of £120m were claimed just weeks after the fund was opened. | The GDHIF closed in July, when vouchers to the value of £120m were claimed just weeks after the fund was opened. |
It offered homeowners cashback and incentives on energy efficiency measures such as double-glazing, insulation and boilers. | It offered homeowners cashback and incentives on energy efficiency measures such as double-glazing, insulation and boilers. |
Scores of companies applied for government accreditation to carry out the work. | Scores of companies applied for government accreditation to carry out the work. |
Paul Mann is managing director of Insulation Render Solutions in Sheffield. | Paul Mann is managing director of Insulation Render Solutions in Sheffield. |
He agreed to carry out work on the basis that clients would quickly receive payment from the Department for Energy and Climate Change (DECC) and reimburse him. | He agreed to carry out work on the basis that clients would quickly receive payment from the Department for Energy and Climate Change (DECC) and reimburse him. |
Mr Mann says the lack of payments for the jobs have resulted in him laying off five renderers, two scaffolders and a plumber, and he's unsure if the business can continue. | Mr Mann says the lack of payments for the jobs have resulted in him laying off five renderers, two scaffolders and a plumber, and he's unsure if the business can continue. |
He said: "Suppliers won't give us new materials until they've been paid, so we're stuck - the knock-on effect has been massive and we've had no clarity from DECC." | He said: "Suppliers won't give us new materials until they've been paid, so we're stuck - the knock-on effect has been massive and we've had no clarity from DECC." |
David Pink from Thrift Energy in Newcastle-upon-Tyne is also waiting for payment for work having spent more than £100,000 on materials. | David Pink from Thrift Energy in Newcastle-upon-Tyne is also waiting for payment for work having spent more than £100,000 on materials. |
He is, however, not surprised that DECC requires more time to check the validity of applications. | He is, however, not surprised that DECC requires more time to check the validity of applications. |
He said: "To redeem the money, DECC only asks for two signatures - we sign it and the customer signs it - along with the vouchers the customer had applied for. | He said: "To redeem the money, DECC only asks for two signatures - we sign it and the customer signs it - along with the vouchers the customer had applied for. |
"There's no photographic evidence - there's no other evidence of the insulation other than that." | "There's no photographic evidence - there's no other evidence of the insulation other than that." |
With a reported £70m being allocated within three days, Jonathan Reynolds MP, the shadow minister for energy and climate change, said more investigation was needed. | With a reported £70m being allocated within three days, Jonathan Reynolds MP, the shadow minister for energy and climate change, said more investigation was needed. |
He said: "To receive that many applications so quickly, there must have been a speculative element to it, with some people applying who may not be able to get the work done." | He said: "To receive that many applications so quickly, there must have been a speculative element to it, with some people applying who may not be able to get the work done." |
A DECC spokeswoman told You & Yours: "We're processing payments as quickly as we can. | A DECC spokeswoman told You & Yours: "We're processing payments as quickly as we can. |
"Following submission of a voucher, payment may be withheld or delayed by the administrator if it considers that further auditing is necessary. | "Following submission of a voucher, payment may be withheld or delayed by the administrator if it considers that further auditing is necessary. |
"While this may be an inconvenience for some people, we're responsible for spending taxpayers' money wisely, and we have a clear duty to ensure that applications and claims meet the scheme rules." | "While this may be an inconvenience for some people, we're responsible for spending taxpayers' money wisely, and we have a clear duty to ensure that applications and claims meet the scheme rules." |
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