The business group claims that 816 redundancies can be directly attributed to a funding gap left by the government between the expiry of the old schemes such as EEC and CERT and the start of Green Deal and the Energy Company Obligation (ECO) on January 28th.
It added that a further 1,182 people had been put on notice of redundancy over the Christmas period as work is put on hold until new funding comes on stream.
Climate change minister Greg Barker conceded last month that job losses were likely in the short-term but ultimately Green Deal and ECO would see jobs in insulation rise to between 39,000-60,000 by 2015.
He said: “The nature of insulation is changing. By the end of 2012, over 65 percent of lofts will be fully insulated, with only small numbers left with no insulation at all. It is, therefore, inevitable that the number of loft insulations being delivered will fall and that the number of jobs in the loft industry will naturally decline.
“By contrast, we have as a nation barely begun to tackle our uninsulated solid wall properties and as we focus more on this challenge, we can expect the overall number of jobs in the insulation industry to increase significantly under Green Deal and ECO.”