DECC confirms cuts to GDHIF cashbacks

With more than £43 million in vouchers already issued, the Department of Energy and Climate Change (DECC) has confirmed a few changes are in store for its popular Green Deal Home Improvement Fund. Those changes include the removal of one key measure and cuts to the amount of cash that can be claimed back. 

Launched early last month, the Green Deal Home Improvement Fund, also known as GDHIF, has proved very very popular. To date, over £43 million worth of vouchers has been issued (50 million has been applied for) with 12,200 applications from over 7,900 households received. Even the Government admits it didn’t quite anticipate the level of interest the scheme, when gives people money back for energy saving home improvements, has so far generated.

When launched on 9th June, £50 million was set aside as guaranteed funding from an available pot of around £120 million. With the scheme on the verge of swallowing up the initial funds, DECC is to implement a series of changes which will see the amount of available cashback per household topple from £7,600 to £5,600.

Insulation for solid walls will continue to receive the most generous cashback, although that is to be cut from £6,000 to £4,000 from 25th July. Solid wall insulation typically costs close to £10,000, which means households who want to insulate their solid walls will have to fund an even greater difference.

Fitted to boilers to capture and reuse waste heat, flue gas heat recovery units will also be removed from the list of qualifying measures from 5th August for new applicants.

The second phase of the GDHIF will see domestic energy customers get:

  • up to £1,000 for installing two measures from an approved list; and/or
  • up to £4,000 for installing solid wall insulation; and
  • up to £100 refunded for a Green Deal Assessment

In addition, households can apply for an extra £500 within 12 months of buying a new home. The cashbacks are available on a first come, first served basis. So the sooner you apply for GDHIF the better. There are no guarantees that rates and terms won’t change again.

Commenting on yesterday’s GDHIF changes, Parliamentary Under Secretary of State for Climate Change, Amber Rudd, said:

“Green Deal Home Improvement Fund vouchers have been flying out of the door. We’re delighted that so many families are already making the most of this very generous offer. Changes announced today ensure even more households can benefit from warmer homes using less energy. There’s up to £120 million in the pot this year, but it won’t be around forever so act now.”


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