Page last updated at 10:39 GMT, Thursday, 12 July 2012 11:39 UK

Parties clash over Green Deal

Labour clashed with the government over the cost of the Green Deal during question time in the Commons on 12 July 2012.

The Green Deal is designed to help households and businesses improve the energy efficiency of their properties, but shadow energy and climate change minister Luciana Berger criticised the cost to borrowers of repaying the loans available under the scheme.

"Households taking out a Green Deal loan of £10,000 would have to pay back around £22,000 over a 25 year period - more than double the cost of paying for measures up front," she claimed.

Energy and Climate Change Minister Gregory Barker accused her of an "obsession with interest rates alone, to the exclusion of everything else".

He claimed that Labour had a plan to subsidise repayments, which would "cost consumers billions and force up everybody's energy bills".

Ms Berger responded that high interest rates meant "a great risk that people just won't be interested in the Green Deal".

Mr Barker said the government would provide "targeted support" through the new Green Investment Bank.

The green bank is being set up with £3bn of public money to help firms finance early-stage renewable energy schemes.

Other questions were on topics including protection for consumers in the energy market and new electricity generating capacity.

Energy and Climate Change: Government and opposition

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