Prime Minister David Cameron and Deputy Prime Minister Nick Clegg have been briefed on the problems affecting the Government’s Green Deal initiative, which aims to improve energy efficiency in homes throughout the UK.

Intended to provide homeowners with loans to pay for loft insulation, cavity wall insulation and other energy-saving measures, the Green Deal was set up to make Britain’s notoriously draughty housing stock far more environmentally friendly.

The Coalition’s flagship green policy aimed to reduce energy consumers’ reliance on gas and oil central heating in more than fourteen million homes. It was also integral to the leadership’s carbon emission targets, which are unlikely to be met if households continue to use more energy than necessary. An additional objective was to tackle the growing problem of fuel poverty.

Despite promising to be the ‘greenest ever government’, the Coalition no longer appears certain about its environmental policy. The success of the Green Deal remains in the balance. Government ministers have delayed core aspects of its implementation and now Mr Cameron and Mr Clegg are discussing the policy at the highest level.

A spokesperson for Downing Street commented: “As we implement all policy, we maintain constant dialogue with stakeholders and businesses who have an interest. The Deputy Prime Minister and Prime Minister are fully committed to the Green Deal”.

Shadow Climate Change Minister Luciana Berger said: “That No 10 has had to call in the Cabinet Office to fix up the Government’s flagship green deal is a clear admission that the current proposals are a complete mess, which won’t deliver the new jobs, lower bills or reduced carbon emissions we all want to see”.

The Chief Executive of the Committee on Climate Change, David Kennedy, added that the Green Deal in its current form would only reach up to three million homes. After doubts were cast over the type of green measures covered under the policy (it remains unclear whether loans will be provided for loft and cavity wall insulation as originally intended), Mr Kennedy noted that leaving the “transformation of the entire building stock of this country” to the market was decidedly unwise.

A week after Tim Yeo, the Chairman of the Commons Energy and Climate Change Committee (CECCC), made public his dissatisfaction with policy requiring homeowners to implement energy-saving measures throughout the home if they sought to built an extension or conservatory, Prime Minister David Cameron has intervened to scrap the new regulations.

Due to come into effect as part of the Green Deal, the policy had aimed to encourage more property owners in Britain to improve domestic energy efficiency. Conserving energy while using less is necessary if the UK still intends to achieve its carbon-emission targets.

The Green Deal was drafted with the aim of making it easier and more affordable for homeowners and landlords to install loft insulation, cavity wall insulation, double glazing, energy-efficient boilers and other green technologies. If Britain’s housing stock was less draughty, it was argued, far fewer carbon pollutants would be released into the atmosphere.

Perhaps after taking notice of Mr Yeo’s comments, David Cameron has decided to put on hold mandatory rules imposed by the Green Deal.

A government spokesperson explained: “The idea that people are going to be forced to improve their energy efficiency or install a new boiler because they want to extend their garage or make their house better is not going to happen.

“It is not policy now. It is out for consultation, but the Prime Minister is opposed to it and it will not become policy. It is not fair to ordinary people trying to improve their homes”.

The source added that Mr Cameron was committed to the Green Deal provided that it remained voluntary. The British Government must now consider new ways to encourage more households to improve energy efficiency, which is hardly a simple task in today’s economy. Far from being able to afford new boilers, insulation and solar panels, many homeowners are struggling to pay rising gas and electricity prices.

Improving energy efficiency in the home is important, however. Liberal Democrat Andrew Stunell believes that households could save up to £150 a year by utilising aspects of the Green Deal. In January, Mr Stunell said: “A quarter of the carbon emissions produced each year comes from our homes, so it is vital we get to grips with energy efficiency to tackle this problem”.

As the Government continues to fine tune the details, the Minister for Energy and Climate Change has spoken out about the Green Deal in an effort to try and separate fact from fiction.

In an article published in the Guardian on Friday, Greg Barker discussed the myths surrounding the Government’s revolutionary home insulation initiative. The Energy and Climate Minister hit back at various media claims that the initiative won’t save people money.

Talking about the level of savings that homeowners can achieve, he said two different assessments would form part of the scheme, with one designed to take into consideration the customer’s average energy use, and another assessment which would delve into the way in which a household can maximize their achievable savings. Barker highlighted the fact that everyone would be able to make savings, and that people were free to take part in the scheme or not; the measures are not by any means compulsory, as some people appear to believe.

There certainly seems to be a lot of confusion about the Green Deal, with opinion divided over whether the initiative has the potential to be everything it claims to be. Many people believe it’s too big for its boots, and is more likely to fall flat on its face as opposed to fulfilling its full potential.

But the scheme, which is set to be introduced this Autumn, is clearly an important initiative – and one that will take a great deal of organisation if it is to be in any way a success. It will enable people to improve their badly insulated draughty homes, such as through installing double glazing, loft insulation or cavity wall insulation, but without needing to pay for the cost of the work up front.

Chairman of the Commons Energy and Climate Change Committee (CECCC), Tim Yeo, has doubted the efficacy of the Green Deal, which aims to improve the energy efficiency of Britain’s draughty housing stock. 

According to Mr Yeo, the Green Deal is an excellent initiative, but its strong-arm tactics of forcing homeowners to install loft insulation, cavity wall insulation and other energy-saving products is plainly wrong.

Referring to plans to make energy efficiency a criterion for obtaining planning permission for conservatories and outbuildings, Mr Yeo said: “I’m not sure it’s the best first step at this stage.

“I think the laudable aim of the Green Deal to make all of Britain’s homes more efficient over the next decade is excellent and anything which encourages homeowners and tenants to make their homes more energy efficient is a good thing”.

Discussing the matter on BBC Radio 4, Mr Yeo added: “It’s good for them, saves them money and also is good for the environment – so we’re all in favour of that. The problem as I see it at the moment is the public are not really much engaged by this, they are not enthused by this prospect. It means having builders into your home, doing things, making a mess – all rather aggravating for a saving which is some way off in the future.

“You’ve got to find ways of making the public more enthusiastic and I think compelling people who have applied for planning consent to make some alteration to their home isn’t necessarily going to help”.

Mr Yeo could have a point. Although improving the energy efficiency of all homes is essential if Britain hopes to achieve its carbon emission objectives, there can be little doubt that forcing onerous conditions on property owners at a time of economic instability will win little favour with the public. People do want more energy efficient homes, but not so much so that they will sacrifice their current standard of living. People want energy efficiency on a budget and at little or no inconvenience.

Mr Yeo concluded: “I’m afraid there is a real risk the practical effects of this proposal may put them off”. He might just be right.

The initial list of companies who are set to offer home insulation deals under the Government’s forthcoming green deal scheme has been revealed.  

A total of twenty two firms have signed up to the scheme under the first wave of registrations, however there are some notable absentees from the list, with big names like Tesco and Marks & Spencer having yet signed up to the deal.

The Green Deal aims to increase domestic energy efficiency by providing households with affordable home improvements such as loft insulation and cavity wall insulation. Although companies can still be added to the list, the failure of Tesco and Marks & Spencer to sign up to the deal straight away has been met with surprise because both firms had previously backed the scheme.

But perhaps of greater concern to the British Government is the fact that only half of the big six energy suppliers in Britain are on the initial list of green deal providers. E.ON, British Gas and Scottish and Southern Electric have agreed to be providers under the scheme, but EDF, npower and Scottish Power are not yet backing it. Could the government’s flagship environmental policy be flagging before it gets started?

A spokesperson for the Department of Energy and Climate Change (DECC) said: “This is just the first tranche of green deal providers. We expect there to be many more companies signing up. We want people to come forward as soon as they feel they are able”.

Despite the DECC’s optimism, there can be little doubt that more high-street retailers were expected to join B&Q on the initial list of home insulation providers. Slow take-up of the scheme could have been the reason why Chief Secretary to the Treasury Danny Alexander announced a £200 million incentive for homeowners late last year.

Government minister Greg Barker opted to focus on the positives of the initial list, which was published on Wednesday. Mr Barker said: “The commitment shown today highlights the opportunity organisations see in the green deal, which only bodes well for the scheme’s future success.

“We will be working with these organisations to ensure they can fulfil the potential they have demonstrated today and become the first to offer green deals”.

A spokesperson for Tesco added: “We are supportive of the aims of the green deal. We already provide home energy efficiency services and we’re in discussion with the government and our supplier Enact to look at ways to expand that service”.

Britain’s housing stock could be facing a cold future if energy-saving measures are not implemented ahead of the predicted fossil-fuel crisis.

The startling revelation was made by the Curator of the Historic Royal Palaces, Dr Lucy Worsley, who presents a BBC Four documentary on the history of homes that is due to be televised next month.

Discussing central heating trends in British homes, Dr Worsley said: “A warm living room showed you were a good host and a generous person.

“They [people living in Georgian Britain] thought an element of wastefulness showed you had enough cash to be generous. In medieval times, heating your home was akin to burning money. There was a 16th century saying, ‘the game’s not worth the candle’ – a task was only worth doing if it justified the expense of illumination.

“But when people began to have more spare time and spare money, considerations of waste became less important”.

Describing things to come, Dr Worsley added: “I do think the future will be Medieval, when the big bang comes and we run out of oil. Small windows, shutters on the outside, a chimney for natural ventilation”.

Keeping the home warm has become a serious challenge for many people in Britain, where millions of people live in fuel poverty, meaning that more than 10 per cent of household income is used to pay for gas and electricity.

Rising energy costs only worsen the problem, but the situation is expected to deteriorate further before energy prices are brought under control. In the meantime, people are advised to implement energy-saving measures throughout the home in a bid to save money without turning off the heating completely. Such measures include loft insulation, double glazing and cavity wall insulation.

As for how warm the home ought to be, Dr David MacKay, Chief Scientific Adviser at the DECC, said: “When I’m at home my normal thermostat settings are roughly 13C, but lower when I am out and 15C, briefly, at getting-up time in the morning.

“One important additional rule is that whenever I feel cold, I turn the thermostat up as high as I like. The automatic thermostat control then turns it back to the normal settings a few hours later”.

British Gas, one of the UK’s leading energy suppliers, has offered to pay £50 to any person who refers a “vulnerable” individual for free cavity wall and loft insulation from the firm.

The incentive is being implemented as part of a wider campaign to improve the energy efficiency of households across the UK. If more homes in Britain were adequately insulated, the nation would be on target to meet its carbon emissions target.

Improved domestic insulation would also benefit energy consumers, who could expect to save as much as £310 a year by installing loft (£175) and cavity wall insulation (£135).

In order to avail of the offer, the person who is referred to British Gas must qualify as a vulnerable individual. This means that the candidate is either a pensioner (aged 70+) or in receipt of certain benefits – namely Attendance Allowance, Child Tax Credits, Council Tax Benefit, Disability Living Allowance, Disablement Pension, Housing Benefit, Income Support, Income-based Job Seeker’s Allowance, Income-rated Employment and Support Allowance, State Pension Credit, War Disablement Pension or Working Tax Credits.

To be eligible for free home insulation from British Gas, candidates on qualifying benefits must earn less than £16,190 per annum. If the candidate meets these criteria, the referrer will receive a £50 payment. After the insulation work has been carried out, the beneficiary will also receive a payment of £50.

At a time when energy suppliers are squeezing every penny out of customers, driving many into fuel poverty, the referral incentive offers at least three benefits: the £50 cash payment; the free installation of cavity wall and loft insulation; and that neither person involved in the referral need buy their energy from British Gas.

Commenting on the incentive, Jon Kimber, British Gas New Energy’s Managing Director, said: “With household budgets stretched we know that people are looking at ways to save money. £1 in every £4 spent on heating is wasted due to poor insulation, so energy efficiency can have a massive impact”.

British Gas is not the first energy supplier in the UK to offer an incentive of this kind. Southern Electric offers £25 in high-street vouchers, whilst E.ON offers a £100 cash bonus to struggling households.

With the announcement that E.On is to cut their customers’ electricity bills by 6%, Scottish Power remains the last one standing to drop energy prices after EDF Energy, British Gas, npower and SSE all confirmed price cuts last week.

For E.On’s 3.7 million electricity customers, the drop will come into effect from 27 February. With no one implementing a dual fuel cut, the energy provider’s gas prices will remain unchanged.

According to E.On – now the fifth of the “Big Six” energy firms to instigate cuts to either gas or electricity tariffs – around 75% of the households it supplies will benefit from a reduction in their average annual bill of around £31.

Thanks to falling wholesale energy prices, energy companies have been facing increasing pressure to pass on reductions to customers.

“Whilst we’re pleased to pass on this recent slight fall in wholesale prices, most experts agree that global energy prices will continue their long-term rise,” commented E.On UK’s chief executive, Dr. Tony Cocker.

Dr Cocker added that as one of the UK’s largest energy providers, E.On is committed to providing financial advice and support to its millions of customers, including helping them to benefit from energy efficiency measures such as loft insulation and cavity wall insulation.

“Over the coming months we will continue to help our customers to monitor their energy use and control their bills so they become energy fit,” he added.

The cuts will take a customer’s average annual dual fuel bill to £1,159 which would make E.On’s standard tariff the third cheapest after npower and EDF Energy.

It seems Scottish Power’s customers will have to wait a little bit longer to hear whether they will be in line for similar price cuts.

The so-called green deal, a scheme established by the UK Government to improve energy efficiency in homes throughout the country, is destined for failure according to the Committee on Climate Change (CCC).

Intended to improve the energy efficiency of 14 million homes in England and Wales, the green deal represents the means by which the coalition can honour its pledge to become the ‘greenest ever’ government. The CCC, however, believes the scheme will only be capable of reaching between two and three million homes – just 14-21 per cent of expectations.

As with so many political promises, the green deal appears to have limited mileage – far less than promised by the UK’s greenest ever government, which presumably believes that extended use of the word ‘green’ to describe policy is sufficient to hoodwink millions of downtrodden voters.

Scheduled to commence in October 2012, the green deal should enable homeowners to pay for energy efficiency improvements in the home – such as the installation of cavity wall insulation – using specialist loans, repayments for which would cost less than the energy bill savings generated by the improvements. Whilst appearing to be a good idea in theory, the green deal serves to remove energy suppliers’ legal obligation to help customers improve energy efficiency in the home.

David Kennedy, the Chief Executive of the CCC, said: “The proposal is to take away that obligation and say, ‘let’s leave it to the market’. We think there is a significant risk in leaving it to the market, as that has never worked anywhere in the world and is unlikely to happen in the UK. We are talking about the transformation of the entire building stock of this country”.

Andrew Warren, of the Association for the Conservation of Energy, was pessimistic about the UK’s chances of improving domestic energy efficiency on a large scale following the predictions made by the CCC. Mr Warren said: “There is going to be a complete collapse in the insulation market. We will see an 80 per cent drop in cavity walls being filled”.

Warren further criticised the Government after it released a national carbon budget plan that claims all cavity walls and lofts in the UK will be insulated by 2022.

An energy efficiency programme has been launched in the US, which aims to achieve a 20% improvement in the efficiency of its buildings by 2020. 

Launched by President Barack Obama and former US President Bill Clinton, the Government will be investing $2 billion (£1.3 billion) into retrofitting federal Government and commercial office buildings.

More than sixty private organisations – including Nissan and GE – have signed up to the scheme and, as part of the Better Buildings Initiative launched earlier in the year, have agreed to  invest nearly $2 billion of their own money into efficiency projects, taking the total to $4 billion.

Speaking at the launch, President Obama explained how upgrading the energy efficiency of America’s buildings would not only create thousands of jobs and help reduce harmful carbon emissions, but it was also one of cheapest and easiest ways to save the country money.

“So today, I’m directing all federal agencies to make at least $2bn worth of energy efficiency upgrades over the next two years – at no up-front cost to the taxpayer,” he said.

Aside from improving energy efficiency through better insulation and more energy efficient heating, the Better Building Initiative should help businesses achieve savings of up to $40 billion (£25.6 billion) annually on their energy bills.