Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Carillion Counts The Cost Of Government Green Deal Flop

Recommended Posts

http://www.independent.co.uk/news/business/news/carillion-counts-the-cost-of-government-green-deal-flop-8857585.html

The Government's struggling Green Deal scheme has led to one of the companies aiming to benefit from the extra work fitting new boilers and insulation writing off £40m.

Ministers said they planned to sign up 10,000 households by the end of the year to take out loans for energy-efficient works, but so far only around a dozen have signed up.

Construction and support-services group Carillion had hoped to cash in from the scheme and has been forced to admit the failure will lead to layoffs and a complete restructuring of its energy division.

Launched earlier this year, the Green Deal replaced previous schemes that offered free or highly subsided insulation and draught-proof services in the hope of reducing energy bills.

The new scheme saw a 97 per cent fall in people insulating their homes, leading to critics calling it a failure and leaving Carillion with too many staff and not enough business.

The company is expected to lay off dozens of staff , but bosses refused to reveal how many jobs would be lost.

Consumers reject the opportunity for taking on more debt. Who'd have thought that would have happened. It appears this govt project has been a total failure.

Sadly people will lose their jobs which clearly should never have been created in the first place.

Share this post


Link to post
Share on other sites

Not unexpected.

This green debt scheme basically forced any takers into the hands of the banks and select service providers who were members of the scheme. Like so much of what has gone on in the last decade - vested interest, market manipulation, debt pushing and a fluffy benevolent government wrapping., resulting in no deal at all.

Take VAT off energy efficiency improvement products, do that and nothing else.

Share this post


Link to post
Share on other sites

I recall looking at this deal before which lead me to the conclusion:

1) Go to Q&Q, buy loft insulation for £100 and fit it myself

2) Takeout £1000 debt and get a 'professional' to supply and fit the insulation, then pay interest on the £1000 for 10 years.

They will have to try harder than that!

Edited by Gone to Ireland.

Share this post


Link to post
Share on other sites

I have some friends who work in the home insulation industry and the withdrawing of funding for free home insulation has decimated the industry, nobody's interested in the Green Deal. There's been a lot of redundancies they're mostly just doing cavity wall insulation now as its all they have.

I've had more than a few doorstep sales rep' s visit lately offering a free cavity wall survey with a view to having it done.

Share this post


Link to post
Share on other sites

I recall looking at this deal before which lead me to the conclusion:

1) Go to Q&Q, buy loft insulation for £100 and fit it myself

2) Takeout £1000 debt and get a 'professional' to supply and fit the insulation, then pay interest on the £1000 for 10 years.

They will have to try harder than that!

The second is much better for GDP though ;). It has HM Treasury written all over it :wacko:

Share this post


Link to post
Share on other sites

A fortnight ago I went to insulate a relative's loft. As I didn't quite have enough insulation with me I went to get some more.

Homebase had no insulation whatsoever. B&Q only had wide rolls which were a b*gger to get into the loft. The measly amount of insulation needed to do this small loft cost over £65. Two years ago I bought enough to insulate my 4 bed house for £28.

It seems to me they don't want anyone to save energy any more. I must admit I'd not made the connection between my difficulty and expense in obtaining insulation and the governments Green Deal loan rip off.

Share this post


Link to post
Share on other sites

Not unexpected.

This green debt scheme basically forced any takers into the hands of the banks and select service providers who were members of the scheme. Like so much of what has gone on in the last decade - vested interest, market manipulation, debt pushing and a fluffy benevolent government wrapping., resulting in no deal at all.

Take VAT off energy efficiency improvement products, do that and nothing else.

+1

Share this post


Link to post
Share on other sites

I understand with loft insulation more is better but removing/ reducing diy subsidy increases the price and I guess people buy less to not even bothering. It will also lengthen the payback period. I have not done the calcs but maybe the payback period is longer than the average time before someone moves house? Yes there are non financial benefits like being warm.

On property pron shows I don't think I have ever seen talk of insulation increasing a property value ( by the savings generated).

Edited by Ash4781

Share this post


Link to post
Share on other sites

Having just missed out on the previous subsidies (I managed to get a water tank jacket for a fiver), I can tell you the price of insulation certainly adds up - about £250 to do our loft. It's a big increase on previous prices - but probably still worth it (at least from the comfort point of view).

But I'd rather put it on the credit card than take any green deal.

Share this post


Link to post
Share on other sites

It seems to me they don't want anyone to save energy any more. I must admit I'd not made the connection between my difficulty and expense in obtaining insulation and the governments Green Deal loan rip off.

Not sure I follow why Green Deal has suddenly caused a surge in the price of blown wool, especially if everybody has actually stopped insulating? The government is famous for cooking things up, but surely even they couldn't succeed in making uneconomic just about the only economically viable 'green' improvement yet seen on an EPC certificate except for room thermostats and energy saving bulbs? The former assuming they in fact cost a fraction of the £350-450 quoted in a standard EPC.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   203 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.