'Cowboy builders' targeted in new government clampdown

'Cowboy builders' targeted in new government clampdown

The government has announced new measures aimed at providing stronger protections for people undertaking home renovations, targeting the issue of unreliable or “cowboy” builders. A new trusted trader database and an improved payment system designed to offer greater security for customers are set to launch next month. Businesses wishing to participate in the scheme must meet specific criteria related to customer service, transparency, and how disputes are handled.

Prime Minister Andy Burnham highlighted the emotional toll caused by dishonest tradespeople, who often leave families with unfinished projects and prolonged stress. Despite these intentions, feedback from some industry voices, such as the National Federation of Builders (NFB), remains cautious. The NFB contends that while the initiative may help, it is unlikely to stop rogue traders entirely. Adas Rico Wojtulewicz-Richmond, the NFB’s policy director, suggested that a more effective solution could involve creating a “passport” that records all work completed on a project, raising standards and allowing consumers to better identify poor-quality operators.

Statistics quoted by the government underscore the scale of the issue: more than 25% of people carrying out home improvements over the last 18 months reportedly faced problems, including builders disappearing after upfront payments. A survey by the Competition and Markets Authority (CMA) estimated customer losses from unfair practices in home and garden maintenance services at over £10 billion in 2024. Past reports have exposed cases like “bait-and-switch” locksmith scams, where initial low quotes balloon with extra fees and unnecessary work. To combat these issues, the new scheme will hold customer payments in an escrow-like account, releasing funds only after certain project milestones are met.

The announcement has received mixed responses from political figures and consumer advocates. Business Secretary Jonathan Reynolds emphasized the government’s commitment to protecting consumers and supporting trustworthy traders. Meanwhile, opposition voices, such as Shadow Business Secretary Andrew Griffith, warned the plan risks burdening honest businesses with additional paperwork, arguing that better law enforcement and tougher penalties would more effectively deter fraudulent operators. Liberal Democrat spokesperson Sarah Olney criticized the scheme as inadequate, pointing out that rogue tradespeople are unlikely to voluntarily join such a code and will continue to exploit customers.

In addition to measures on home renovation trades, the government has proposed new regulations to oversee private bailiffs in England and Wales. This is intended to safeguard individuals in debt from aggressive tactics, unfair treatment, and excessive repayment demands. The reforms include establishing an independent complaints process and imposing professional standards on bailiffs. Sarah Sackman, the minister for courts and legal services, acknowledged the important role played by bailiffs but stressed the necessity of maintaining high standards of conduct. Furthermore, the government plans to review how bodies like Trading Standards collaborate with regulators and enforcement agencies to ensure consumers receive consistent support without being bounced between organisations. This follows revelations from a Freedom of Information request showing that understaffing in trading standards teams has contributed to an increase in scams and unsafe products on the market

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