A heating installer has criticised the Government for pulling the plug on funding for householders to save energy in their homes just weeks after its launch.

Swale Heating said it was a shock when the Department of Energy and Climate Change closed its £120m Green Deal Home Improvement Fund “with immediate effect”.

The initiative was announced in June offering householders the chance to get up to £7,600 back on energy-saving improvements.

The Government decided to close the fund last week after receiving a surge in applications which threatened to blow the budget.

It came as a blow to Sittingbourne-based Swale Heating, which has invested heavily in promoting the scheme to customers.

Sales Director Matthew Edwards said: “Stopping the scheme so soon after launching it will do nothing to boost consumer confidence.

“It’s going to be very hard for householders to believe the Government will honour future pledges and offers.

“As we predicted, this initiative has generated huge interest from consumers and encouraged them to make their homes greener and drive down their energy bills.

“The DECC should have been prepared for this kind of response and ensured that sufficient funding was available to meet demand.

“Now many thousands of people who haven’t had the chance to apply for funding yet will be disappointed.”