LCBP suspended

At the same time that the scheme, designed to boost the uptake of renewables in homes, was given a 50% increase in funding by the chancellor, the DTI announced that it was suspending the programme in order to restructure it.

The LCBP has been beset by problems in recent months. Since its launch in April 2006 demand has outstripped available funds, resulting in a monthly allocation cap of £500 000. March’s allocation was used up within 70 minutes of becoming available.

Trade and Industry Secretary Alistair Darling said: “There has been exceptional demand for grants under the Low Carbon Building Programme. We are backing it. But there have been problems in meeting that unprecedented demand. We will re-structure the scheme to make it work better.”

While the scheme is re-structured the decision has been taken to suspend it for the April allocation. The DTI said it was important that the final additional funding, due to end in mid 2008, was used to best effect to bring on a microgeneration sector that could stand on its own two feet without further subsidy.

DTI Ministers will be meeting with industry to discuss how best to operate the new scheme and will announce the way forward in May.