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Credit checks to be made a requirement for the Green Deal

Applicants will have to pass credit check to get financing for energy efficiency improvements

In order to receive financing from the Green Deal homeowners will have to pass a credit history check. The Green Deal Finance Company, which will provide 80% of the funding for the scheme has announced that it will comply with guidance from the Office of Fair Trading and carry out a credit check on anyone applying for the loan.

This has led some to argue that the scheme will fail to help those who most need it as those with a poor credit history are most likely to be living in fuel poverty, with energy inefficient homes.

Pippa Read of the National Housing Federation, said: “This must not be done at the expense of very low-income and vulnerable groups that should be encouraged to access the green deal.” However Paul Davies, a senior partner at Pricewaterhouse Coopers and a member of the GDFC said that the credit check will have more relaxed criteria for getting the loan than a normal personal loan of the same value. He insisted the checks would be done “with a brain”.

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