The government has taken immediate action after checks found widespread cases of poor-quality solid wall insulation installed under inherited ECO4 and GBIS.
- Routine checks have identified widespread cases of poor-quality solid wall insulation installed under inherited Energy Company Obligation 4 and Great British Insulation Scheme
- Government takes immediate action to protect consumers, with 39 businesses immediately suspended from installing new solid wall insulation. Installers responsible for this substandard work will be forced to fix and households should not be asked to pay
- Poor-quality installations are the result of years of a failed system, with ministers committed to introducing new reforms to drive-up quality and protect consumers through the Warm Homes Plan
Thirty-nine businesses have been suspended from installing new insulation in people's homes, after ministers were alerted to reports of poor-quality work.
Routine checks carried out by TrustMark, the independent body which oversees tradespeople working in homes, have uncovered examples of substandard solid wall insulation fitted since 2022 under the Energy Company Obligation 4 and Great British Insulation Scheme - both inherited by the government.
As soon as these issues were identified, the government took immediate action to ensure installers are swiftly suspended, expand checks of solid wall insulation measures installed under both schemes, and implement a comprehensive plan to begin an immediate repair process. The government has instructed the energy regulator, Ofgem, to take oversight of this work to ensure it is swiftly delivered.
The government has demanded that installers fund any repair work themselves, under protections in the schemes. No household should be asked to pay any money by an installer.
Ofgem has now begun writing to all the households affected, explaining that qualified professionals have started a system of checking every installation under these schemes.
In some cases, an on-site visit will then follow to determine whether any insulation work carried out requires a repair. If it does, the certification body that oversees the installer, or TrustMark, will arrange to fix the problem as soon as possible.
Examples of substandard installation range from missing or incomplete paperwork, insufficient ventilation, or missing or exposed insulation, which if left unchecked could lead to damp and mould. While this is a serious issue, this is not considered a widespread threat to safety.
Installers responsible for this substandard work will be forced to fix this at no cost to households and will remain banned from installing new solid wall insulation on any government scheme if they do not fulfil their obligation to put any issues right.
The government is confident that these systemic issues are particular to solid wall insulation installed under the Energy Company Obligation 4 and Great British Insulation Scheme. This is because there is a stronger system of checks and balances in place for other energy efficiency schemes delivered through local authorities and social housing providers.
Minister for Energy Consumers Miatta Fahnbulleh said:
I know this news will be concerning for people who have had external or internal wall insulation fitted through either scheme we have inherited.
That is why we are taking action to put this right, forcing installers to fix any poor-quality installations as soon as possible and at their own expense.
Affected households should look out for a letter from Ofgem, which will set out steps to resolve any issues.
It is clear the existing system of protections for consumers we inherited is in dire need of reform. This will be front and centre of our Warm Homes Plan, as we work to make sure no households are let down in this way again.
The government has inherited a situation where there are several organisations with different roles and responsibilities, producing a fragmented and confusing system of protections for people wanting to make their homes more energy efficient.
While installers are responsible for poor-quality installations, they have been permitted to operate in a broken-up system of regulation which has left some households exposed to bad practices, along with little idea of where to turn to if things go wrong.
This system can no longer command confidence and ministers will now press ahead with a sweeping overhaul through the Warm Homes Plan, so that people can be confident of the quality of upgrading and insulating homes, which could help save money on their bills.
This will involve rapidly changing the landscape of regulation, spanning from how installers working in people's homes are certified and monitored, to where homeowners turn to for rapid action and enforcement if things go wrong.
Notes
Official statistics show that to the end of November 2024, just over 65,000 external wall insulation and internal wall insulation measures have been fitted in around 65,000 households under the Energy Company Obligation 4 (ECO4) scheme and Great British Insulation Scheme.
Other government schemes include the Home Upgrade Grant (HUG), Local Authority Delivery (LAD) and Social Housing Decarbonisation Fund (SHDF).
