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A recent inquiry by MPs has revealed that two government-backed insulation schemes were inherently flawed and have led to serious problems in thousands of homes. The Public Accounts Committee described the failure of these schemes as “catastrophic,” noting that more than 30,000 houses fitted with insulation since 2022 exhibit major defects. Concerns were raised about the potential health and safety risks posed by these faulty installations.
The committee criticized the schemes, known as ECO 4 and GBIS, for being poorly designed from the outset. It highlighted a lack of oversight by senior government officials, who reportedly did not assess the effectiveness of the programs for nearly two years. Sir Geoffrey Clifton Brown, the chair of the committee, expressed alarm at the high levels of non-compliance among installers, suggesting that the issue should be investigated by the Serious Fraud Office. Despite the scale of the problem, fewer than 10% of affected homes have received remediation since the issues were brought to light in October 2024. The report also emphasized that delays in providing fixes increase the risk of damage, thereby escalating health and safety concerns.
Accountability for the quality of installation work also came under scrutiny. Trustmark, the organization responsible for overseeing this oversight, was criticized for failing to alert officials to widespread issues with external wall insulation until October 2024. In response, Trustmark stressed its commitment to consumer protection and stated it is working alongside government bodies and industry partners to identify and rectify the problems. The group acknowledged that poor workmanship is unacceptable and underscored the urgency for systemic reform.
The schemes have been in place for over 15 years, costing billions of pounds, with the objective of making homes more energy efficient, reducing carbon emissions, and helping vulnerable households reduce their energy bills. However, there have been numerous reports of substandard work causing damp, black mould, and dry rot in affected properties. The government maintains that repairs will be carried out free of charge and that original installers are liable for the rectifications, backed by guarantees covering up to £20,000 for cases where installers cannot meet their obligations. Nonetheless, the committee warned repair costs often exceed this amount. Notably, damage to a home in Luton is estimated at over £250,000, with the insurer of the original installer covering the expenses. While the Department for Energy Security and Net Zero downplays the extent of the issue, the Public Accounts Committee disputes this, calling the official response “not credible.” The report mainly addresses work completed since 2022 but notes that homeowners from earlier schemes also continue to experience difficulties. Previously, the National Audit Office estimated possible fraud in the schemes ranging between £56 million and £165 million, though MPs believe the actual figure is likely much greater
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