Questions asked around sudden closure of green deal home improvement scheme
Posted by Tasha Kosviner on 25 July 2014 at 9:33 am
The government has announced that applications to the green deal home improvement fund have closed with immediate effect.
Following a ‘surge in applications’ over the last two days, the GDHIF budget was reached and breached and in a surprise move, the government last night pulled the plug.
All eligible applications received prior to the closure of the fund will still be honoured.
The move follows an announcement two days ago that the fund for solid wall insulation would be slashed from £6,000 to £4,000 per household as payouts made under the fund neared £50m. But this led to a ‘surge in applications’ which meant that the fund £120m fund was suddenly emptied.
Questions were immediately asked about how more than £60m worth of vouchers could be issued in just two days.
“Am I the only person here thinking that someone has scammed the system?” wrote the Happy Energy blogger.
Meanwhile Richard Twinn policy and public affairs officer at the UK-GBC said that the closure perpetuated a 'cycle of boom and bust' in the green building industry.
“The sudden and immediate closure of this fund is another setback for the energy efficiency industry because companies have specifically geared up to market and deliver through this scheme," he said.
"These constant changes are not helpful to the industry we now need urgent clarity as to whether government will bring forward any more money to ensure continuity of green deal work."
Concerns that the scheme was ‘scammed’ centre around the possibility that the vouchers may have been claimed by installers speculatively, who may then ‘sell’ them on to householders in their own time.
All that is needed to register for the GDHIF is an EPC number and a green deal installer or provider reference. EPC numbers are readily available from the Landmark register and you just need to select a GDI or GDP from a drop down menu.
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