Energy secretary Amber Rudd said the move would protect taxpayers and government spending amid low take up of the Green Deal scheme, which allows homeowners to borrow the cost of installing energy efficiency measures.
The Energy Company Obligation (ECO), which supports low income and vulnerable households, will continue whilst existing Green Deal Finance Plans and Home Improvement Fund applications and vouchers will remain unaffected.
The government says it will now work with industry to design future schemes which offer better value for money, and more stringent protection and standards to consumers.
The news is the latest in a succession of announcements since May’s election withdrawing government spending on decarbonisation incentives.
“We are on the side of hardworking families and businesses – which is why we cannot continue to fund Green Deal,” said Amber Rudd.
“It’s now time for the building industry and consumer groups to work with us to make new policy and build a system that works.
“Together we can achieve this government’s ambition to make homes warmer and drive down bills for one million more homes by 2020 – and to do so at the best value for money for taxpayers.”