Insulation industry issues jobs warning

Around 2,000 jobs have been lost following cuts to the Green Deal and ECO, the National Insulation Association (NIA) has claimed.

The NIA has called on the Government to fast track the development of a new long-term, sustainable policy framework for home energy efficiency and introduce urgent transitional arrangements to help the sector.

The move comes following a survey, which has revealed that around 2,000 jobs have been lost among NIA members as a direct result of cuts to the ECO and Green Deal.

The Government announced in July there would be no more funding for the Green Deal Home Improvement Fund and Green Deal Finance Company, which effectively mothballed the energy efficiency scheme.

“The changes made to the Energy Company Obligation scheme in 2014 coupled with Government decisions in July 2015 not to provide further funding to the Green Deal Finance Company and to end the Green Deal Home Improvement Fund with immediate effect without alternatives in place has resulted in a collapse in insulation activity levels,” said NIA Chief Executive, Neil Marshall.

“Whilst Government has outlined its intention to introduce a new long-term policy framework for energy efficiency, which we welcome, the insulation industry is currently in a state of crisis as a result of the absence of robust transitional arrangements to bridge the gap until the new polices and schemes are introduced. 

“Without urgent intervention there will be further casualties, job losses and a loss of confidence to invest among insulation companies all of which will impact on the industry’s ability to scale up to support the delivery of the Governments longer term ambitions,” added Mr Marshall.

“The job losses clearly demonstrate the scale of the problems facing the industry at present and we would urge DECC Ministers to work with the industry in putting in place urgent actions to address the crisis.”

Jamie Hailstone is a freelance journalist and author, specializing in local government, transport and energy issues