Green Deal warning from MP

A WARNING that the “Green Deal” could cost people more money than they save, has been sounded by Warrington North MP Helen Jones.
The Government scheme offers installation of energy saving measures free. Savings made on bills will be added to the bill to recover the cost of installation of the measures. So there is no initial outlay for work.
But the MP said: “Sky high interest rates mean consumers could end up paying more in interest payments on charges than for the energy efficiency measures themselves. They could also face penalty payments running into thousands of pounds for wanting to pay off their loan early. “
She said the Government announced that the interest rates on Green Deal loans would be 6.9 per cent.
Ms Jones said: “If a family takes out a standard £10,000 Green Deal package over the standard 25 year period, at the expected interest rate of 6.9 per cent they would have to repay £20,822.16 – a charge of over £11,000. That means they would need to save over £800 a year off their energy bills just to break even.
“Groundwork UK thinks the average family will only save £300 a year. On that basis the Green Deal is not a good deal. People should be very careful and ensure they are aware of all the costs they might incur before they sign up to this scheme.”