Government hopes for jobs boost as Green Deal goes live

Aaron Morby 11 years ago
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The Government claimed the Green Deal will support 60,000 insulation jobs by 2015, as financing measures to encourage retrofitting buildings with energy efficient improvements went live today.

Households in England and Wales can now use the Green Deal to fit insulation and new heating systems and qualify for hundreds of pounds of cash back.

The more work households decide to have done, the more cash they could receive and packages could be worth over £1,000.

But claims that it will create a near three-fold jobs boost in the insulation sector alone will be greeted with scepticism.

Already the gap between the old insulation grant regime ending and the Green Deal starting has been blamed for 1,700 job losses in the insulation industry since December.

According to the Insulation Industry Forum (IIF), orders from more than 34,000 households wanting insulation were cancelled because the funding was cut then, and a further 27,000 inquiries from householders put on hold.

The Government is pinning it hopes on boosting demand with a national advertising campaign using the slogan ‘Green Deal with it’.

Despite a disappointing soft launch late last year, deputy prime minister Nick Clegg said: “The UK green sector is a success story – it is the sixth largest in the world and has a crucial part to play in building a strong economy.

“The Green Deal will support thousands of jobs – not just over the next few years, but in the long-term.”

Energy and Climate Change Minister Greg Barker said: “The Green Deal is also great for business, creating a new market and new jobs. I’m truly excited about the potential the Green Deal has to transform Britain’s buildings.

A spokesman for Carillion said: “For millions across the UK this means installing the right mix of insulation and heating measures and we believe that Green Deal is a golden opportunity to do this at scale and within everyone’s budget.”

Paul Davies, partner at accountant PwC, added: “It’s easy to get distracted by the headlines or expect too much too soon.

“The reality is this has the potential to be a truly transformational programme, kick starting a much needed upgrade of Britain’s housing stock, and help the economy on the way.

“As this is a long term approach, I wouldn’t expect everyone to come flocking to the idea straight away. Many people will still wait until they can fit it around other home improvements or moving house.”

Green Deal in numbers

  • £125m is available in the Government funded Cashback Scheme
  • 8m households could benefit from solid wall insulation
  • 4m households could benefit from cavity insulation
  • 60,000 jobs are expected to be supported in the insulation sector alone by 2015 – up from 26,000 in 2011
  • £3.5m of funding to training in key Green Deal skills
  • £270 a year could be saved if a typical three bedroom semi-detached house installed just solid wall insulation
  • 38% of the UK’s total greenhouse gas emissions come from leaky buildings

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