According to the Government’s own figures, the number of cavity wall and loft insulation installations will fall dramatically under the Government’s flagship green policy: the Green Deal.

The Impact Assessment released by the Department of Energy and Climate Change (DECC), forecasts that the level of loft insulation work carried out under the Green Deal will drop by 93 percent. The Impact Assessment also predicts that the rate of cavity wall insulations could fall by as much as 70 percent.

The forecast shows a 90 percent fall in properties taking part in insulation subsidy schemes in England and Wales during 2012 from 2011 figures, to just 19,142 homes. The predicted reduction in the insulation market is being attributed to low projected uptake of the Green Deal, in comparison to current market demand.

Shadow Energy Secretary, Caroline Flint, said that according to these current trends, many homeowners could be left without aid from official bodies.

Flint added: “This Government is so out of touch that when families are facing record energy bills and a bitter winter, it has cut help for people trying to do the right thing and make their homes more energy efficient.”

A spokesperson from the Department of Energy and Climate Change commented that there will be fewer installations as a result of a reduced budget for insulation means.

Steven Heath, External Affairs Director of Knauf Insulation, said: “The predicted fall should be of grave concern to the insulation and construction industry and one we should collectively voice our concerns over to the Government.
“There needs to be a sensible, effective transition to the Green Deal over the next five years, allowing us to service those households still in need of loft and cavity wall insulation while preparing for the predicted shift to Solid Wall Insulation, which retains its subsidy under ECO. We urge the Government to rethink its transition to the Green Deal if the countless jobs and businesses reliant on loft and cavity wall insulation are to remain in existence.”

Knauf Insulation argues that revised measures are required to the Green Deal in order to drive adoption. Key to this success will be the inclusion of financial incentives such as a council tax or stamp duty rebate for homeowners insulating their properties.

The Green Deal and Energy Company Obligation consultation closes on January 18. Responses can be made to the consultation here.