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GDHIF Cashback Scheme Runs out of Money

28th Jul 2014

A scheme to incentivise households to install energy saving improvements has proved too popular for its own good.

Less than seven weeks after it was launched, the Government has announced that the Green Deal Home Improvement Fund has to close because it has run out of money.

The Green Deal Home Improvement Fund (GDHIF) closed at 6.30 last Thursday evening, due to “overwhelming popular demand” which saw the allocated budget of £120 million swallowed up very, very quickly. Once the budget limit was reached the Department of Energy and Climate Change made the decision to end GDHIF so as to make sure the rates for existing applicants could be honoured. As long as the Fund terms and conditions are met, DECC has said that all applications received prior to its closure will be entitled to benefit from the scheme’s existing rates.

The scheme’s closure came not long after the maximum cashback available to households under GDHIF was reduced from £7,600 to £5,600. The Government scheme, which went live on 9th June, provides grants to help households install energy saving measures from an approved list.

DECC will be monitoring voucher redemption rates. Should funds become available it may consider launching a smiliar offer in the future. By the time GDHIF closed 21,683 applications worth £118 million had been received.

Parliamentary Under Secretary of State for Climate Change, Amber Rudd, said they were always clear about the budget, which is why people were encouraged to act quickly before funding ran out.

Available in England and Wales, the Green Deal Home Improvement Fund was introduced to drive interest in the Green Deal scheme. Households could apply for funding to install a range of energy saving home improvements, including boiler replacements through the Green Deal.

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