Following a concerted attack by the opposition, the Environment Minister Peter Garrett will this afternoon cancel the remainder of the $2.45 billion stimulus package scheme which paid installers for insulating houses.

It is understood the program will be replaced with a scheme in which the insulation will have to be paid for and then a rebate claimed back from the government.

The scheme was approved by federal cabinet yesterday, based on a submission presented by Mr Garrett.

This week the government was forced to impose a temporary ban on foil insulation following the deaths of two installers while installing the material.

It also ordered an audit of 48,000 homes where foil insulation had been fitted.

Two other workers have died while installing other forms of insulation.