The government is set to claw back most of a £1.5bn fund for retrofitting homes because delays getting the money to householders means it is unlikely to be spent by a March deadline.

The Green Homes Grant, which launched at the end of September, included £1.5bn for householders and was set to run to 31 March but just £71m, or 5% of the monies had been spent by 22 January. The government has announced unspent funds will not be rolled over beyond March despite the scheme being beset by delays distributing the funds to householders.