Deep concerns over the government’s flagship policy to make 14m homes warmer and cheaper to heat have reached the top of government, with prime minister David Cameron and deputy prime minister Nick Clegg receiving a personal briefing on its troubles.
The green deal aims to provide “pay as you save” loans to homeowners to improve their energy efficiency and cut bills. It is due to launch in October but has faced widespread criticism from energy companies, the building industry, consumer groups and charities. The government’s own impact assessment shows loft insulations and cavity wall insulations – the most cost-effective measures by far – are set to fall by 93% and 67% respectively under current plans. “The impact assessment says it is going to be a train crash,” said Andrew Warren, director of the Association for the Conservation of Energy.
The escalation of the issue to Downing Street came on the same day as official data revealed that average home energy bills have shot up by up 12% – £140 – in 12 months, following a doubling in the past six years due largely to rising gas prices. Furthermore, national statistics on fuel poverty due to be published on Thursday are certain to show a rise from the current 5 million homes, a quarter of the total.
The green deal is intended to address fuel poverty, as well as being a crucial policy in cutting the carbon emissions driving climate change, but the Cabinet Office has been told it will flop unless fundamental changes are made. Warren and a series of other senior stakeholders were interviewed by Cabinet Office officials, who reported to Cameron, Clegg and energy secretary Ed Davey on Wednesday.
