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A recent report by a spending watchdog has revealed major failures in two government schemes designed to reduce energy consumption through home insulation. The National Audit Office (NAO) found that 98% of homes that underwent external wall insulation under the previous administration’s programs are now at risk of damp and mold issues if left unaddressed. Additionally, 29% of homes that received internal insulation also require remedial work.
Energy Consumer Minister Martin McCluskey has acknowledged the problems and assured that the government will cover the costs of fixing the affected homes. One resident, Mohammed Mahedi, shared the challenges he faced after having external wall insulation installed in his home in Luton. He described experiencing respiratory issues and criticized the scheme for making things worse instead of better.
The NAO report focused on work carried out between 2022 and early 2025 under the ECO4 and Great British Insulation Scheme. It highlighted significant design flaws in the Energy Company Obligation (ECO) scheme, leading to poor-quality installations and suspected fraud. Gareth Davies from the NAO emphasized the need for swift repairs to all affected homes and urged the Department for Energy Security and Net Zero to prevent such failures in the future.
The report also criticized TrustMark, a consumer protection scheme established in 2021 to oversee insulation programs, for inadequate oversight and lack of auditing. This allowed some installers to manipulate the system, potentially resulting in fraudulent claims. Energy Minister McCluskey condemned the systemic failings uncovered in the report and promised comprehensive reforms and improved accountability moving forward
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