John Sinfield: Government policy is directly leading to massive job losses in the industry.

Green Deal delay leads to 816 job losses in insulation industry

Published:  02 January, 2013

816 jobs have been lost in the insulation industry this Christmas as a direct result of Government delays in the introduction of the Green Deal and Energy Company Obligation (ECO). Another 1182 have been put on notice of redundancy, according to the Insulation Industry Forum (IIF), with a large number receiving their P45s over the Christmas period.

This is due to the Government’s failure to put in place robust plans for the transition between the end of the Government’s existing scheme (on December 31st 2012), and funding under Green Deal and ECO becoming widely available (expected to be from the middle of 2013). It follows the Insulation Industry Forum (which comprises more than 70% of the insulation industry) warning earlier this year that 16,000 jobs were under threat.

With the current subsidy schemes coming to a close, insulation installation companies have already seen installations for 34,235 homes cancelled due to lack of funding.

Despite Government rhetoric, funding for the Green Deal is unlikely to be widely available from 28 January. Already installations for a further 27,284 homes have been put on hold as there is no funding available.

The IIF strongly supports the objectives of the Green Deal and ECO and its members are actively working towards its success. However, the Government’s failure to plan for the transition to Green Deal and ECO will be devastating for many of those in the insulation industry who are losing their jobs as a consequence. IIF seeks an urgent meeting with Government and has issued a paper to Government setting out the steps which they should consider.

Insulation Industry Forum spokesperson John Sinfield of Knauf Insulation said: “Government policy is directly leading to massive job losses in the industry. So far, 60 companies will be making redundancies, with many handing out their P45s over the Christmas period. The delays to the Green Deal and ECO, and failure to put in place a sensible transition plan, will seriously damage the industry.

“This is only the tip of the iceberg. Tragically we can expect thousands more jobs to go in the New Year, as the Government continues its policy of dither and delay.

“Until the Government realises the extent of the problem, and takes steps towards addressing it, the effects will continue to be felt by the entire industry.”

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