MPs warn Green Homes Grant could be damaging the industry

A report from MPs warns that the underperforming Green Homes Grant has been “botched” due to supply and demand problems, with severe consequences for many builders across the industry.

The environmental audit select committee said that the scheme, which offers up to £10K for insulation upgrades, had only achieved 10 per cent of its target, with 600,000 homes in six months having seen upgrades. The MPs warn that unless action is taken urgently to improve the UK’s housing stock, the country will fail to meet its climate targets.

The report says that the Government had however “failed to grasp the challenge,” with the Government countering that it is “committed to going further and faster.”

The report says: “The impact of botched implementation of the GHG has had devastating consequences on many of the builders and installers that can do the work, who have been left in limbo as a result of the orders cancelled and time taken to approve applications.”

The Government previously announced that it will phase out the grant from April, and instead will encourage mortgage lenders to let homeowners borrow to fund energy efficiency upgrades. However the committee said it would prefer to have the scheme reformed rather than abolished. They said it needs long-term funding to give support to the supply chain and necessary training.

The Federation of Master Builders’ Brian Berry told the committee: “The market needs certainty because small companies are not going to invest unless they know there is a long-term market.”