Would a VAT reduction boost your energy efficiency?

Despite the government's efforts it appears as though the uptake of the Green Deal will not be as high as hoped, meaning that countless homes across the UK will continue to lose heat through energy inefficiency.

In Britain it is estimated that around two-thirds of consumers are not fully confident that their home is as energy efficient as it should be, while seven out of ten do not intend to do anything to rectify this.

Many are reluctant to make use of the Green Deal, because they are effectively taking out a loan to meet up-front costs of installations. Consequently, experts have been calling on the government to introduce further, tangible incentives to encourage more Brits to use the deal.

One of the ways to make the programme more attractive to homeowners is a reduction of VAT, which would save consumers money and discourage them from using rogue traders.

Andrew Leech, director at the National Home Improvement Council (NHIC), explained: "I honestly think that [the Green Deal] makes [homeowners] think twice about doing energy efficient improvement to the property because they have to pay through the nose for it."

What's more, "If you don't make the investment, and buy something cheaper because VAT has not been reduced, then it means that you won't get such a good product at the end".

A reduction in VAT would allow homeowners to afford better energy solutions and would encourage them to make the investment, he said.

However, reductions in VAT will be rendered useless unless people are aware of what is available, why it is available and how to access funding.

According to Consumer Focus, 35 per cent of Brits are currently unaware that suppliers offer free or discounted insulation, while 47 per cent do not even know how thick their insulation is, so are unable to make the decision that it needs to be improved.ADNFCR-1051-ID-801279165-ADNFCR