By Jonathan Davies

The government has announced the end of funding for the Green Deal.

The Green Deal offered cashback and incentives for eco-friendly building improvement purchases like double-glazing, insulation and new boilers.

The Department for Energy and Climate Change (DECC) said it was withdrawing the scheme after low take-up and concerns over industry standards. It said it will now work with the industry and consumer groups to work on a "value-for-money approach".

Energy and Climate Change Secretary Amber Rudd said: "We are on the side of hardworking families and businesses - which is why we cannot continue to fund the Green Deal.

"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."

Small businesses

The Federation of Small Businesses (FSB) welcomed the introduction of the Green Deal, but said it was not cost effective for the country's small firms.

John Allan, FSB national chairman, said: “The Green Deal made a start in encouraging householders and small firms to become more energy efficient. However, it is clear the finance package was simply too unattractive and unwieldy for most small businesses to take up.

“Our research shows that 90% of small businesses want to be more energy efficient, but money isn’t always the biggest barrier. Small firms claim a lack of incentive to invest in rented premises; an uncertainty regarding return of investment and a poor understanding of the options available as the biggest obstacles to energy efficiency.

“The Government must look at these issues to ensure the success of further efficiency measures. Small businesses are desperately looking for security around their potential investments in both renewables and efficiency.”