Which?, WWF and Greenpeace have sent a joint letter warning the Government that its flagship Green Deal will not only fail but will have a “devastating impact” on both consumers and industry as costs spiral upwards, unless urgent reforms are undertaken.
“In order for it to have any success, the Green Deal has to be good value for consumers. However, as this letter highlights, the current Green Deal plans will do nothing to help those who are already fighting a losing battle against escalating energy bills.
“Ministers are estimating that the interest rate on Green Deal loans will be 7.5%, a rate which means that a Green Deal package worth £10,000 would, after 25 years, cost £22,000 to pay back. Only an inept and out of touch Government could possibly expect consumers to be enticed by such a terrible deal.
“The Government needs to head this warning and move swiftly to rescue the Green Deal from failure on all fronts. This means using the Green Investment Bank to finance the Deal at a rate that will be consumer friendly.”