Chancellor urged not to scrap Green Home Grants

Chancellor Rishi Sunak

Nineteen organisations representing or working within the energy efficiency and low carbon heating sector have highlighted the importance of the continued and successful delivery of the Green Homes Grant Voucher Scheme to government ministers.

Premature closure of the Green Homes Grant Scheme would put jobs in jeopardy and put the UK’s Net Zero target at significant risk, they said.

The Green Homes Grant scheme was announced by the Chancellor Rishi Sunak in July 2020 and has been met with high demand from homeowners and industry, a joint statement said.

The energy efficiency and low carbon heating sector was concerned by recent rumours that the scheme will come to an early close on 31 March 2021, after initially being delayed until March 2022, and that the £320 million of the funding allocated for 2021/22 may be recalled.

Such a decision could have significant financial implications for businesses who have invested in developing capacity to meet the demands of the scheme. It would also undermine the trust of homeowners who have applied for vouchers for home improvements yet to be delivered, the statement added.

Derek Horrocks, chairman of the National Insulation Association, said: “Stable policy is needed to provide the industry with the confidence, it needs to invest and adapt to the demands of the net zero transition. Enquiries for insulation and low carbon heating have been extremely high, despite the current circumstances, and companies across the sector have responded and geared up the supply chain to meet demand.

That’s why we would urge the chancellor not to curtail the Green Homes Grant, to ensure that our sector can lead the UK’s economic recovery and meet the government’s net zero ambitions.”