Responding to the launch of the Government’s Green Deal for households in England and Wales today (Monday 28 January), Friends of the Earth Head of Campaigns Andrew Pendleton said:

“A Green Deal to cut energy waste from our homes and insulate Britons from soaring fuel bills is a great idea, but the scheme is undermined by significant flaws.

“The interest rate on loans is bound to undermine the Green Deal’s appeal to cash-strapped households. 

“Bolder Government action is needed to help those really struggling to heat their homes – recent cuts to insulation programmes must be reversed.”

Friends of the Earth is calling for Ministers to fix the Green Deal by:

·         Improving the loan interest rates by making them more competitive for consumers.

·         Backing it up with tough regulations on rented homes that don’t meet a basic standard of insulation.

·         Using the money the Government will receive from carbon taxes to boost spending on energy efficiency programmes directed at those on low-incomes.

The environment charity also supports the Green Deal cash-back option allowing people to make their homes more energy efficient and receive money back in return. The advantage of the cash-back scheme is that people can insulate their homes without having to borrow any money on a Green Deal loan.

ENDS

Notes to editors

1.              Friends of the Earth is a founder member of the Energy Bill Revolution campaign (www.energybillrevolution.org.uk) which is calling for the Government to use the future revenue it will receive from carbon tax and trading to boost spending on energy efficiency schemes for low-income and fuel poor households. It is estimated that the Treasury will receive on average £4bn annually over the next 15 years. If this was re-invested in energy efficiency it could take 9 out of 10 low-income households out of fuel poverty. The Energy Bill Revolution campaign is supported by over 100 organisations including children’s, health and consumer organisations.