Energy: Green Deal and Energy Company Obligation

Baroness Worthington Excerpts

Wednesday 30th January 2013 Lords Chamber

[Baroness Verma]

I begin by thanking my noble friend for his very warm welcome. The Green Deal targets energy efficiency schemes and is one of the most effective ways in which to tackle fuel poverty. That is why the minimum of 40% of eco will help to support low-income households. The eco-affordable warmth and carbon saving community obligations will support around 230,000 low-income households each year. The insulation sector as a whole has a real opportunity to grow from the success of the Green Deal, and we estimate that overall jobs in the sector will increase from the 26,000 recorded in 2011 to about 60,000 in 2015.

[Baroness Worthington]

My Lords, interest rates for loans for home improvement under the Green Deal appear far higher than can be obtained on the high street. Both Homebase and the RBS, for example, offer loans at below 5% interest, whereas the Green Deal base rate starts at 6.9%. Can the Minister please explain why the Government have failed to negotiate a more attractive offer? Could she also inform the House how many people have signed up since the launch on Monday?

[Baroness Verma]

My Lords, this is a market-based deal. To be quite frank, it is really important that we allow consumers the choice of finding where they want to go for their finance, but this offer from the Green Deal Finance Company is available to 80% of the population. So it is a competitive rate, but if people want to source elsewhere it does not stop them from doing so. We also think that the energy company obligation with the extra £540 million attached to it will help those families who are not always able to access and source competitive rates. As for commenting on how many people have signed up, it was launched only on Monday, so it would be very predictive of me to be able to predict a figure for the noble Baroness at this stage.