Green Homes Grant Funding Cut Due To Lack Of Interest

By Paul Homewood



Funding for the Green Homes Grant voucher scheme is set to be slashed by around £1.5 billion from April, it’s been revealed.

The Government had set aside a total of £2 billion for the initiative, under which homeowners in England can get up to £5,000 in vouchers to make their homes more energy efficient. £1.5 billion of this was earmarked for households, with the other £500 million going to local authority-led schemes.

When it first launched in September 2020, there was a tight six-month deadline to get any work done, but this has since been extended until 31 March 2022. See our Green Homes Grant guide for more info.

But it’s now been revealed in a written answer by Business, Energy and Industrial Strategy Minister Anne-Marie Trevelyan that the original £2 billion in funding is only to be used in the 2020/21 financial year, and any leftover cash won’t be rolled over. As of 26 January 2021, just 17,618 vouchers had been issued to households, accounting for just £73.1 million of the cash set aside to fund the scheme.


It is claimed that the scheme has failed because it is too complex and cumbersome, but that is nonsense – it is taxpayer money we are talking about here, and it is perfectly right that care is taken to make sure it is spent properly.

The real reason is much simpler, and is the same reason why Ed Davey’s Green Deal collapsed due to low take up in 2015 – nobody is interested in this green crap!

This new scheme offers up to £5000, but can only cover two thirds of the total cost, leaving homeowners to cough up for the difference. (Some people on benefits qualify for 100% grants, but they are the last people likely to want to take on such a commitment).

And most people are sensible to have worked out that spending even a third of the cost is a waste of money.

For instance, installing a heat pump will cost upwards of £10000 in most houses, meaning householders must pay at least £5000. Yet we know that heat pumps won’t cut energy bills, they will more likely increase them.

Solar panels as well will cost much more than the £5000 maximum grant, and offer very poor returns.

As for insulation, most homes already have double glazing and loft insulation. Fitting other types of insulation, such as wall insulation, is expensive and offers little in the way of energy saving.

The numbers speak for themselves. When the government introduced the scheme last year, they had a target of 600,000 homes, but only 20,000 vouchers have been issued.

Just as in 2015, when Ed Davey’s scheme collapsed with just 4000 Green Deals signed up in the first two years,  government is finding out that most people have no interest in “saving the planet”, particularly when it might cost them money!


February 12, 2021 at 12:33PM

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