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Green Deal

Volume 512: debated on Thursday 1 July 2010

7. What steps he plans to take to introduce the proposed green deal on domestic energy efficiency; and if he will make a statement. (4941)

In the emergency Budget the coalition Government confirmed their intention to establish a green deal for all households and for business. The green deal will enable individuals to invest in home energy-efficiency improvements that can pay for themselves from the savings in energy bills, without any up-front costs and without their incurring any form of personal debt or charge on their property. We have committed in the Queen’s speech to legislate in a first Session energy Bill for finance tied to the energy meter, which should allow for the full green deal to be available by 2012. Only yesterday the Government announced that we are extending the carbon emissions reduction target through to the end of 2012.

I thank my hon. Friend for that very full answer. In my constituency many households are living in fuel poverty. Will my hon. Friend explain exactly how households will be able directly to access the grant to help tackle fuel poverty and reduce fuel bills?

The green deal is not a grant; it is designed to be repaid through the savings made on bills over 25 years. The beauty of the green deal is that, unlike any previous proposal, it will be totally unrelated to the household’s ability to pay. It will simply be repaid, regardless of the credit scoring or wealth status of the individuals in the household. Of course, other measures will always be needed to make sure that fuel-vulnerable and hard-to-treat properties have direct financial support.

Is the Minister aware that another source of useful efficiency savings in the domestic sector would be ground source heat pumps, as part of the renewables initiative? I see the Secretary of State nodding. Through his Minister, I can tell him that a company in my constituency which is very big in this area has jobs that it can create and orders in hand that it is ready to commit to. It seeks a meeting with the Secretary of State; it is not for the Minister to reply on that, but I would be grateful if the matter could be taken seriously in the Department.

We are very supportive of new technology, and I am well aware of the potential of ground source heat pumps. We want to enable a whole universe of new technologies to be part of the renewables solution. If the hon. Gentleman’s constituents would like to meet me, I would be very happy to do so.