Almost all external insulation fitted under Tory scheme needs repair or replacing, report finds | Energy efficiency
An investigation found that almost all external insulation installed under the previous government’s energy efficiency scheme was so poorly installed that it would need to be repaired or replaced.
Thousands of homeowners who have taken advantage of home insulation plans have been faced with poorly installed cladding, which in some cases can lead to dampness and mold growth.
Of the approximately 23,000 homes fitted with external wall insulation under the Energy Company Obligation (ECO) and the Great Britain Insulation Scheme (GBIS), 98% are in need of repair, according to research by the National Audit Office (NAO).
The NAO said 9,000 to 13,000 homes fitted with internal insulation faced greater problems (29% of those who had these works done).
More than 3,000 installations of both types are likely to pose health and safety risks requiring urgent remediation.
“The report reveals a system that allows cowboys to get in through the front door,” said Simon Francis, co-ordinator of the End Fuel Poverty Coalition. “It has left thousands of victims in misery and undermined public confidence in efforts to tackle the cold, damp housing crisis facing many households.”
He added: “Insulation and ventilation, when done correctly, is one of the safest and most effective ways to reduce energy bills and keep people warm. But substandard delivery and poor oversight from the recent government has turned what should have been a national success story into a cautionary tale.”
“We need to fix the system, not abandon it anymore,” he said.
The ECO and GBIS initiatives aimed to tackle fuel poverty and reduce carbon emissions across the UK by requiring energy companies to fund the installation of energy efficiency measures in homes.
But the NAO said weak government oversight and inadequate inspection and monitoring had led to thousands of poor-quality installations, leaving homes at risk from damp, mould, clogged ventilation shafts and exposed electrical wiring.
As a result of poorly executed work, homeowners were unable to remortgage or sell their homes; The insulation was so poorly installed that cold and damp conditions could be exacerbated. In January, almost 40 companies were blocked from installing insulation as part of the schemes amid growing backlash over substandard work.
“People’s homes and lives have been damaged by these faulty installations, many are facing fuel shortages and many people have fallen on very hard times as a result,” said Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit.
The NAO said: “The government created an overly complex system that ultimately failed.” It was blamed for “unclear and fragmented roles, responsibilities and accountabilities” between program providers, certification bodies, regulator Ofgem and the Department for Energy Security and Net Zero (DESNZ).
Installers were able to “game” the audit process by being certified by multiple certification bodies or transferring their certifications between organizations; which meant they had less history with each of them.
The NAO report found that fraudsters were also able to defraud millions of people out of this scheme. Last November, Ofgem estimated that refurbishments had distorted claims for ECO installation in 5,600 to 16,500 homes, potentially claiming between £56 million and £165 million from energy suppliers.
Sir Geoffrey Clifton-Brown MP, chairman of the House of Commons’ public accounts committee, which oversees the NAO, described the “absolute failures” of the retrofitting plans as “absolute”.
“Despite allegations of fraud, a lack of sufficient quality data means that overall levels of fraud at ECO remain unknown,” he said. “DESNZ and Ofgem took swift action after becoming aware of widespread problems, but their efforts continue to be hampered by weak government oversight and an overly complex consumer protection system.
“It is imperative that households gain clarity on how they can repair their homes and that a system is put in place to prevent these failures from recurring.”
Plumbers are responsible for the entire cost of correcting faulty insulation installations under the program. Affected households are encouraged to contact Ofgem.
Minister for Energy Consumers Martin McCluskey said: “Today’s report shows unacceptable, systemic failures to install solid wall insulation in these schemes which directly impact tens of thousands of families.”
He said the government was taking “decisive action” to protect households and ensure all poor solid wall insulation installations were repaired at no cost to the consumer.
“We are fixing the broken system the last government left behind by implementing sweeping reforms to make this process clear and understandable, and in the rare cases where things go wrong, there will be clear lines of responsibility so consumers are guaranteed to have any problems resolved quickly,” McCluskey said.
