The Federal Government has suspended the use of foil insulation nationwide under the home insulation program.

Environment Minister Peter Garrett said the safety of householders and installers was a priority for the program.

"We have taken action to suspend foil insulation from use under the home insulation program," Mr Garrett said.

"Metallic foil is conductive and, when installed incorrectly, without undertaking the mandatory risk assessments and in breach of clear program requirements, this product can be dangerous."