Bad news for those looking to get funding

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The Green Deal and GDHIF are dead!

The Green Deal and GDHIF are dead!

It was announced last Thurs­day that the Gov­ern­ment have decided to can­cel the GDHIF scheme which had pre­vi­ously allowed house­holds in the UK to claim grants to help cover some of the cost of installing energy sav­ing mea­sures in the home, like our Exter­nal solid wall insu­la­tion.

On top of can­celling GDHIF, the Gov­ern­ment have also can­celled the Green Deal scheme – which was the finance option some peo­ple again were using to help cover the cost of installing these mea­sures.

When the Gov­ern­ment orig­i­nally launched the Green Deal scheme it was expected to be the ini­tia­tive that changed the face of the energy effi­ciency mar­ket in the UK. For the first time, peo­ple would not sim­ply get things installed for free; instead they would pay for the mea­sures through their energy bills.

It was to mark the end of the sub­sidy junkies, those who claimed new boil­ers, loft insu­la­tion and cav­ity wall insu­la­tion know­ing they wouldn’t need to pay a penny to get these mea­sures installed.

Well, after 18 months the scheme has now been killed off. Launched ini­tially in Feb­ru­ary 2013, hun­dreds of thou­sands of peo­ple in the UK have since had Green Deal assess­ments, but only a frac­tion of these peo­ple have then gone on to take up the Green Deal finance. In total it is has been esti­mated the Green Deal has cost in excess of £0.5 bil­lion to date – and the Gov­ern­ment could sim­ply not afford to keep prop­ping up the scheme finan­cially.

Finance rates too high and just overly complex!

Speak­ing to our friends over at The­GreenAge, one of London’s lead­ing energy con­sul­tants (and a Green Deal asses­sor organ­i­sa­tion), James Alcock their MD said that although the prin­ci­ple of the sys­tem was good, in real­ity it was highly com­pli­cated to get the Green Deal finance in place and also the inter­est rate was too high despite being offered over 25 years for some mea­sures.

The good news is that for us here at BeCon­struc­tive there will be no change in oper­a­tions – we have found in recent months, about 80% of our cus­tomers are pay­ing for the works out­right – be it the exter­nal solid wall insu­la­tion or sim­ply re-ren­der­ing the exist­ing prop­erty. Hav­ing said that, if you do have a solid wall insu­la­tion voucher under GDHIF and are still look­ing to get the works car­ried out – we rec­om­mend mov­ing fast. The dead­line for get­ting the works car­ried out will soon be upon us so if you would like to ensure you don’t miss out, please give us a call – we do still have some avail­abil­ity to install EWI over the next few months.

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