A company working with Peterborough City Council to offer energy efficiency grants of up to £6,000 has gone into administration.
The Mark Group is one of three contractors the council is working with for its ‘Heataborough’ scheme.
The news is said to be causing distress for residents, with some thought to have spent their own money, on top of the available grants, to pay for external wall insulation.
Active community member Ansar Ali said people had told him they had spent around £1,000 but had not received any improvements.
Mr Ali said: “I’ve spoken to people and they are very disappointed this has happened. They feel let down and only signed up for this scheme because it was supported, sponsored and provided by the council.
“I would have thought the council would have done a due diligence test. Something has gone terribly wrong and people are distressed.”
The council said 155 residents had agreed to have external wall insulation works carried out by the Mark Group. Of those, 22 have had work completed, 22 have seen work begin and 111 have not yet had any work done.
A council spokesman said all appropriate financial checks were made with the Mark Group before signing a contract and that no issues were raised. He added: “We have either written to or called all property owners that may be affected this week.
“Our next step is to understand how and if residents have paid for works. That is why we have contacted residents directly to understand if they paid any contribution towards their works to the Mark Group.
“We want to reassure residents that we are committed to do all we can to support those who have paid deposits to either have the work completed, or their deposits refunded. Those with contracts with EON or SERS, the remaining Green Deal installers, are not affected.”
Residents with concerns should call the council on 01733 747474 or email firstname.lastname@example.org.