Announcement

Savings by DECC on low-carbon technology programmes

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

On 24 May 2010 the Chancellor of the Exchequer announced £6.2 billion of savings across Whitehall in order to reduce the public deficit. Of …

On 24 May 2010 the Chancellor of the Exchequer announced £6.2 billion of savings across Whitehall in order to reduce the public deficit. Of the £85 million DECC is contributing to the savings, £34 million will come from expenditure on low carbon technology. We announced in May that £3 million would come from closing the Low Carbon Buildings Fund early. The remaining savings will come from:

  • £6.1 million efficiency savings and under-spending on programme budgets within DECC
  • £4.7 million saved by cancelling the final funding rounds of the Bio-Energy Capital Grants Scheme and the Bio-Energy Infrastructure Scheme. These schemes have been responsible for nearly £60 million of public investment since 2002, and have supported around 400 individual projects. £5.3 million of grants for 2010/11 are not affected and will remain in place, closing as planned on 31 March 2011
  • the department will save £1 million on funding for development of Deep Geothermal energy generation, which will still receive £1 million this year
  • saving £3 million by reducing the scope of the Offshore Wind Capital Grants Scheme
  • early closing of the Energy Saving Trust technology trials, saving £700 thousand from the £3 million pound programme
  • reducing the scope of the Central Government Low Carbon Technology Programme saving £2.9 million
  • the Carbon Trust will receive a £12.6 million reduction to this year’s grant for low carbon technology and business support funding from DECC

This means that DECC will spend over £150 million on low carbon technology this year.

Notes to editors

1) On 24 May the Treasury announced £6.2 billion of cuts across Whitehall.

Read the press notice: Government announces £6.2bn of savings in 2010-11

2) The rest of the £85 million in DECC’s spending cuts was announced on 25 May:

  • £4.8 million from the department’s administrative costs including savings on pay and travel
  • £20.2 million from efficiencies across the Department’s delivery bodies
  • £26 million from other efficiencies including £6m by targeting lower impact spend in the Regional Development Agencies, and reducing their running costs

3) The savings on the the Offshore Wind Capital Grants scheme will not affect the £5 million announced on 5 July 2010 by Secretary of State for Energy and Climate Change The Rt Hon Chris Huhne MP.

Read the press release: £10 million grants for UK offshore wind technology