Just 21% of people planning to make energy efficient changes to their homes over the next 12 months are considering taking advantage of government subsidies, according to research from Pay4Later, UK provider of point of sale credit.
Pay4Later’s research reveals that 58% of people are planning to make changes to their homes over the next 12 months to improve energy efficiency levels. While 37% are aware of government subsidies, they won’t use them, and 18% do not know they exist.
“Despite energy costs coming down, the average annual bill for a dual fuel customer is still £1,265. This coupled with the fact that many households have felt a financial squeeze in recent years, means making energy saving improvements to your home can be one of the best ways to cut your annual cost of living,” said John Wark, marketing manager at Pay4Later.
“We believe that the low take-up of these government subsidies is down to a lack of awareness, the application process sometimes being too complicated and taking too long, and that many don’t want to pay for a survey to see if they qualify (the cost of this can be over £100). We also believe that people are increasingly waking up to the fact that they may find a more competitive financial deal elsewhere.”
Of those carrying out energy-efficiency improvements, around 46% intend to spend over £1,000, 22% will spend more than £5,000, and 6% will spend over £10,000.
Given the huge expenditure, 39% intend to finance some or all of this through loans. Of these people, just over one in three will borrow up to £2,500, and 17% will borrow between £2,500 and £5,000. A staggering 8.6% - or 1.1 million people will borrow over £10,000.
Finance is available for consumers starting at 0% APR, which can be better than the rates offered through the government’s Green Deal. These deals consists of a financial loan where people pay it back through the savings made via their reduced energy bills.
In terms of the energy efficiency home improvements people plan to make, 35% intend to improve their property’s draft proofing, and 31% are looking to enhance insulation levels in their homes. Some 30% are looking to replace windows and doors.