Are you willing to pay the price for going green?

Oct 22, 04:16 PM

Going green used to be presented as a way of saving money, but the stark reality that dealing with climate change will mean us spending more is dawning.

The carrot of £5,000 grants to help people ditch gas boilers and install air source heat pumps or other more eco-friendly heating was dangled by the Prime Minister this week. 

There was a hefty caveat though, there is only enough cash for 90,000 being made available and it seems like the rest who want to get greener heating will need to foot hefty bills themselves. 

People can stall but eventually the stick will come, with banks encouraged to only give the best mortgage rates to those with efficient homes.

Likewise, another carrot was dangled in the form of green savings bonds from NS&I, so savers could put their money to work helping the nation’s green projects.

Once more, there is a big caveat: the rate on the three-year bonds is a measly 0.65 per cent. That compares to the best standard three-year savings fix of 1.81 per cent.

Maybe Kermit was right, it’s not easy being green.

But will our good intentions overcome the higher costs and lower returns and people be willing to pay the price for going green?

On this week’s podcast, Georgie Frost, Lee Boyce and Simon Lambert, discuss green bonds and better alternatives and greener homes, their costs and whether there is also better options that we are being presented with right now.

Plus, we had closure on the axing of the triple lock this week, with an inflation figure that set the next state pension increase, and bitcoin hit a record high. 

And finally, Lee explains the This is Money headline of the week: ‘I fished my daughter's third birthday present out of a skip’