Thousands of jobs have been lost and nearly 45,000 installations cancelled across the UK as a direct result of government delays in the introduction of the Green Deal and Energy Company Obligation, according to the Insulation Industry Forum.

The £750m insulation industry has twice written to the Department for Energy & Climate Change (DECC) calling for urgent talks to avert the crisis, as 4,220 jobs have been lost, with a further 1,350 on notice.

John Sinfield, IIF Spokesman and MD of Knauf Insulation Northern Europe said the constant delays are having a hugely detrimental effect on the livelihoods of workers right across the UK.

“At the coldest time of the year, companies across the country are faced with the real prospect of having to shut their doors for good, leaving houses freezing and thousands unemployed. DECC’s response so far has been to ignore our warnings and the issue,” he said.

“Greg Barker and the rest of DECC need to wake up to the mess they’ve created, get around the table with the insulation industry and try to find a way to clear it up,” said Shadow Climate Change Minister, Luciana Berger MP.

“These job loss figures expose the effects of the chaotic Green Deal and ECO launch and show it is much worse than was previously thought. It’s wrong that more than four thousand hard working people and their families are paying the price for this government’s incompetence. With so many orders being cancelled or put on hold, urgent action is needed before the situation gets any worse.”

This week Greg Barker, Minister of State for Energy & Climate Change, appeared on the Boulton & Co programme on Sky claiming that the funding crisis was only in the cavity and wall insulation sectors, however the IIF has confirmed that at least 13,000 orders for solid wall installations had also been cancelled or put on hold. Today the IIF warns of more solid wall job losses if the government does not act urgently.

The IIF said the situation has been caused by the DECC’s failure to plan any transitional measures in between the ending of the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP), and the start of the Green Deal and ECO. The IIF believes the new numbers clearly demonstrate DECC’s failure to understand the extent of the crisis.