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GDHIF and RHI lined up for budget cuts

Insulation installation

Plans are being drawn up to cut the funding available for the Green Deal Home Improvement Fund and the Renewable Heat Incentive, according to media reports.

A source from DECC has reportedly told the Financial Times that spending on the GDHIF could be pruned from £370m, whilst the wider but underachieving Green Deal scheme could be withdrawn in its entirety from 2017. Meanwhile the domestic and non-domestic RHI schemes could also be in line to lose out, despite low take up and large budget underspends.

DECC is also preparing for deep job cuts following the government’s decision to slash the department’s budget by £70m for this financial year, with further cuts expected in this unprotected area of spending, unlike the ringfenced NHS and education allocations.