The failing Green Homes Grant (GHG) intended to help property owners, including landlords, reduce the carbon output of homes is to be stopped 1st April 2021.
The GHG scheme has struggled with many applicants unable to find installers to carry out works and poor administration causing some installers to go out of business waiting for payments. The grant has only reached 10% of the homes that the scheme was meant to reach. Only last week an all party government committee savaged the scheme in a highly critical report.
The government’s policy to reach a net zero greenhouse gas target by 2050 will require major improvements in the energy efficiency of the 19 million homes in the UK. The GHG with a budget of £300 million was intended to reach 600,000 homes. The cash allocated to GHG will now be transferred to a separate insulation fund run by councils.
Energy Secretary Kwasi Kwarteng chose to focus on the transfer of cash to the local authority fund, rather than the scrapping of the GHG saying:
“Upgrading the country’s homes with energy efficiency measures means we can cut emissions and save people money on their energy bills.
“Today’s funding boost will mean even more households across England are able to access these vital grants through their local authority.
“This latest announcement takes our total energy efficiency spending to over £1.3bn in the next financial year, giving installers the certainty they need to plan ahead, create new jobs and train the next generation of builders, plumbers and tradespeople.”
Ed Matthew, from climate change think tank E3G said:
“The end of the government’s flagship green homes scheme is a tragedy that was avoidable.”
“There was plenty of demand for the grants but the scheme was plagued by incompetent administration. The reality is that we can’t get to net-zero without decarbonising our homes.”