- New analysis estimates that of the 100,000 new jobs the government promised through the scheme, just 14,500 have been created to date
- The union body says that more than 8,000 of those jobs could be lost because of a government funding cut of more than £1bn
- The TUC is calling for government to reverse its plan to cut the programme in a time of rising unemployment, and deliver a green jobs drive in the Budget
The TUC warned on 1 March that the withdrawal of hundreds of millions of pounds from the Green Homes Grant scheme will be “a wrecking ball” to green jobs.
The warning comes as the union body releases new analysis which shows that if these cuts are implemented, the government will overwhelmingly fail to deliver the promised 100,000 new jobs, and over half of those who have found employment through the scheme could be laid off.
The analysis reveals just 14,500 jobs have been created to date, and the TUC estimates that in 2021-2022, 8,500 jobs will be lost, with only 6,000 remaining.
The Green Homes Grant, which provides funding for retrofitting homes to make them more environmentally-friendly, was announced by the chancellor in his ‘Plan for Jobs’ speech in July 2020.
This was the government’s flagship policy to “build back better” and create green jobs in the face of rising unemployment. The grants were since promoted by the prime minister as a key plank in his ten point plan for a green recovery.
Recently however, the government has quietly set out plans to cut more than £1bn of funding from its flagship green initiative.
The move has caused consternation among business, environmental groups and unions – who have all raised concerns about the decision. The TUC says many businesses and workers had been relying on the scheme in good faith and will now be left out of pocket.
A proper green jobs drive
The union body is calling on the government to reverse the decision, fully fund the scheme and invest in a powerful green stimulus to create millions more decent jobs in the Budget on Wednesday.
The government’s Green Jobs Taskforce has promised to deliver 2 million jobs by 2030. But the TUC says the government must step up its ambition.
The TUC has set out plans to create 1.24 million good green jobs within the next two years. These jobs included retrofitting homes to make them more energy-efficient, as well as installing faster broadband, developing modern transport links and bringing forward new green technology.
In its retrofitting proposal, the TUC said 212,000 new jobs could be created and earmarked local authorities for delivery.
The Green Homes Grant has two components for delivery: a private voucher-based outsourced part and a local authority part. The private outsourced component has the lion’s share of responsibility for delivery.
The union body says instead of cutting Green Homes Grant funding, money should be redirected towards the existing local authority delivery process for private and social housing.
Local authorities delivered on £74 million of their £500 million scheme by November and are likely to use their full budget by March, demonstrating greater readiness to create jobs.
TUC General Secretary Frances O’Grady said:
“This funding cut will be a wrecking ball to green jobs.
“The Green Homes Grant was supposed to create jobs, not cost them. By pulling the funding, the government has shown it isn’t serious about ‘building back better’.
“A proper green jobs drive could stop mass unemployment, help power our economic recovery and tackle climate change.
“The chancellor must take the opportunity to reverse this damaging decision on Wednesday at the Budget. And he must drive our recovery forward with a powerful green stimulus that creates millions more good secure jobs.”
