A MILLION-pound project to insulate more than 100 Winchester homes has been shelved.

Winchester City Council postponed wall insulation works in Winnall flats because of growing cost to the taxpayer.

It was hoped the scheme would cut heating bills, condensation and carbon emissions.

But a report to last Wednesday’s cabinet housing committee said the increasingly expensive wall insulation offers poor value to taxpayers and leaseholders.

The council would have been burdened with “very significant costs” after British Gas withdrew a grant, the report said.

Andrew Kingston, property services manager, said spending money on kitchens, bathrooms or solar panels elsewhere would provide "much better returns". 

He told the meeting: "There's no payback for the council on this scheme and the cost, particularly in the council tenants and leaseholders is very high.

"I think some of the leaseholders could quite rightly challenge the reasonableness of sending them a bill of £12,000 only to save them £100 from an electricity bill.”

The scheme would cost taxpayers £12,486 per council tenant but save just £110 a year from fuel bills for a two-bed flat.

The apartment blocks - comprised of Craddock, Braxton, Earle and Dennett houses, have seen investment of £15,000 per flat over the last two decades, including work on kitchens, bathrooms, central heating and windows.

Richard Botham, chief housing officer, said the council is seeking further grants to fund the scheme.