What Effect will the Green Deal Have on the Insulation Industry

Green Deal will kill cavity wall and loft insulation industry

Industry leaders are calling for urgent action to support the cavity wall and insulation industry.

There is mounting concern that these building materials sectors will be killed off by the introduction of the Green Deal.

This has been fuelled by the revelation that the Government is predicting a collapse in loft insulation work of 93% and a 70% fall in cavity wall insulation work when it comes into being.Instead, installations of solid wall insulation are predicted to soar, even though this is a more expensive way of reducing carbon emissions.

Mike Ankers, chief executive of the Construction Productions Association, warned: “There must be further work carried out on a transition process between the existing CERT scheme and ECO.

“As things stand, there will be a catastrophic collapse in cavity wall and loft insulation work at the end of this year when the CERT scheme finishes.

“It is essential that the new ECO arrangements provide for a short period of continued support for cavity wall and loft insulation, while the Green Deal becomes established.”

This week a leading manufacturer Knauf warned that as a result manufacturers were likely to stop investing in the UK.

Responding to the Government’s Green Deal and Energy Company Obligation consultation, a CPA spokesman said: “We all know that Green Deal has the potential to be a real game changer, but government must accept this is a long-term solution and not a quick fix opportunity.

The association also called for VAT to be cut to 5% on both Green Deal work and Green Deal equivalent energy efficiency work.

“To make the Green Deal work, targeted fiscal incentives will need to be brought in.”

Click here to read more new items from Modern Masonry Alliance