The Labour Government has been reported to be considering a scheme by which a homeowner could fund eco-improvements through a long term loan, possibly provided through the energy companies.

And although an inevitable row has broken out between the political parties as to whose idea it is – both the Tories and Liberal Democrats claim they had the idea first – it is a genuine attempt to help people afford home improvements with the environment in mind. We have already seen the boiler scrappage scheme has been welcomed with open arms as lots of people have jumped on the chance to buy a new gas boiler at a discount. So if it goes through it will hopefully have a positive affect.

It has always been a dilemma for anyone contemplating making changes to their house and more energy efficient, is that the pay-back can be decades.

Take double-glazing which undoubtedly makes a property warmer. Although it will save hundreds of pounds off an average energy bill every year, that won’t cover for a long time the actual cost if installation which will cost thousands of pounds.

Even the simpler job of installing loft insulation is not that cheap, especially if a householder cannot do it as a DIY project.

So the Government plan is simple: provide people with access to long term funding so they can make their home more energy efficient.

The crux is of course, can the Government afford such schemes, especially as over the coming years the public purse is going to have to be considerably tightened and home grants will be hit hard? If you look at the welcomed boiler scrappage scheme, this has proved very popular, but the scheme itself has a limited shelf life, grants for new gas boilers cannot last forever. What’s more, various consumer groups are already complaining that a number of home improvement grant schemes are being withdrawn, or wound-down. Will this result in many of the government boiler grants being forgotten by the power companies as well?

So, it’s perhaps inevitable the Government will want to involve the energy companies in the scheme. Maybe not to wholly bank roll-it, but to act as a clearing house, although you could see the temptation of ministers asking the big energy companies to put their hands in their pockets for people’s house improvements; almost a corporate tax by proxy.

But the cynics might also point out this is the period before the general election, when the Government and opposition parties alike will promise many things which are then conveniently forgotten when they become leaders.

So, it’s a great idea, but don’t hold your breath!

Guest Article by Neil Camp