THE Government’s flagship energy-saving scheme was branded a “rip-off” last night — as it emerged that families face eye-watering interest rates.
Under the Green Deal, homeowners can borrow up to £10,000 for improvements such as insulation and double glazing.
The cash will be clawed back from energy bills over a period of up to 25 years — but interest rates are likely to exceed 6.9 PER CENT.
Brits will also have to fork out up to £150 for a two-hour assessment.
Energy Secretary Ed Davey insisted it would slash bills. But officials admit there was “no guarantee” everyone will save cash. Labour said £10,000 at 6.9 per cent would result in £20,822 being paid back over 25 years.
Shadow Energy Secretary Caroline Flint said: “With sky high interest rates, it’s hard to see how the Green Deal will be anything other than a bad deal.”
A similar scheme in Germany had a 2.65 per cent rate.
The Coalition hopes 14million families will take part but only FIVE have signed up.
Nearly £3million will be spent on a marketing push.
TaxPayers’ Alliance’s Matthew Sinclair said: “It’s time for a rethink before any more taxpayers’ cash is squandered.”