Thousands at risk in unsafe homes after failed insulation schemes

Thousands of people are living in homes that pose risks to their health and safety after the “catastrophic failure” of two government insulation schemes, MPs have said.

Major defects have been identified in more than 30,000 homes fitted with insulation through government programs since 2022.

The Public Accounts Committee has now said plumbers’ “level of non-compliance” should be investigated for fraud and the government’s current response is “not credible”.

The Office for Energy Security and Net Zero said it was “categorically untrue that there are widespread health and safety risks”.

A spokesman added: “For the vast majority this means a home may not be as energy efficient as it should be.”

The parliamentary committee monitoring the effectiveness of government spending said the ECO 4 and GBIS insulation schemes, which start in 2022, were so poorly designed they were almost “doomed to fail”.

He said they had received “almost no interest” from senior government officials, so they didn’t know whether the plans were working for at least two years.

Committee chairman Sir Geoffrey Clifton Brown said the level of non-compliance by insulation installers was too high and the matter should be referred to the Serious Fraud Office.

The committee found that less than 10% of affected homes have been repaired since October 2024, when the problems first emerged.

It warned that the likelihood of damage increases when households have to wait for help, leading to “immediate health and safety risks that require immediate attention”.

The report also criticizes Trustmark, the body responsible for inspecting the quality of insulation work, for failing to notify authorities of high levels of faulty external wall insulation by October 2024.

Responding to the committee’s report, Trustmark said it was “fully committed to providing strong consumer protection for all types of home improvements”.

“We continue to work with the government, our Program Providers, Registered Businesses and, where appropriate, warranty providers to identify and correct these issues.

“These examples of poor quality workmanship are completely unacceptable and highlight the need for change and reform to the current system,” Trustmark said.

Affected customers can find information about TrustMark’s Find and Fix scheme on their website. website.

Government insulation programs have been in place for over 15 years and have cost the public billions of pounds. Their aim was to make homes warmer, reduce carbon emissions and help some of the poorest and most vulnerable people reduce their energy bills.

However BBC News reported several cases last year When the work was poor quality, it led to damp, black mold and, in some cases, dry rot.

The government said the homes would be repaired at no cost to the consumer.

It was stated that the original installer was responsible for fixing the problems and that the warranty should cover repairs of up to £20,000 if an installer goes bankrupt or fails to adequately fix the problem.

But the committee warned that repairs could cost more than that.

BBC News last year reported the case of a house in Luton where damage caused by failing external wall insulation was so extensive it was estimated to cost more than £250,000. The bill is collected by the plumber’s insurer.

The Office for Energy Security and Net Zero said a very small number of people were expected to need help with their repairs.

But the Public Accounts Committee accused the Department of underestimating the extent of the problem and said its plans were “not credible”.

The committee’s report focused on work carried out since 2022, but BBC News spoke to homeowners who had insulated their properties under previous government schemes to say they too needed help.

In October the government spending watchdog the National Audit Office said insulation plans May have been involved in fraud worth £56 million to £165 million.

But MPs on the committee said they suspected the actual level of fraud was much higher.

Energy Consumers Minister Martin McCluskey said they had fixed the system inherited from the previous government, which was “unfit for purpose and had multiple points of failure”.

He said: “Under these two schemes, every home with external wall insulation is inspected at no cost to the consumer.

“And we have made it clear that no household should be asked to pay to fix things.

“More than 50% of all non-compliant properties found to date have been fixed.”

He added that the government has decided to end the ECO scheme and instead invest more through local authorities.