A recent report by Members of Parliament reveals that thousands of individuals are residing in homes with potential health and safety risks, citing a “catastrophic failure” of two government-led insulation initiatives.
Since 2022, over 30,000 residences retrofitted with insulation through government programs have exhibited significant defects.
The Public Accounts Committee has expressed concerns, stating that the “level of non-compliance” by installers warrants investigation for potential fraudulent activity and deemed the government’s current response “not credible.”
In response, the Department for Energy Security and Net Zero refuted the claims, stating it is “categorically untrue there are widespread health and safety risks.”
A department spokesperson clarified, “for the vast majority, this means a home may not be as energy efficient as it should be.”
The parliamentary committee, responsible for monitoring government expenditure, characterized the insulation schemes ECO 4 and GBIS, launched in 2022, as fundamentally flawed and almost “bound to fail.”
According to the committee, senior government officials paid “virtually no attention” to these schemes, remaining unaware of their effectiveness for at least two years.
Sir Geoffrey Clifton Brown, chair of the committee, asserted that the extensive non-compliance among insulation installers necessitates referral of the matter to the Serious Fraud Office.
The committee’s findings indicate that less than 10% of affected homes have been remediated since the issues came to light in October 2024.
The report cautioned that delays in addressing these issues increase the likelihood of further damage, leading to “immediate health and safety risks that need urgent attention.”
The report also criticizes Trustmark, the organization responsible for overseeing the quality of insulation work, for its delayed notification to officials regarding the high incidence of faulty external wall insulation until October 2024.
In response to the committee’s report, Trustmark affirmed its “totally committed to ensuring strong consumer protection for all types of home improvements.”
“We are continuing to work with government, our Scheme Providers, Registered Businesses and where appropriate, guarantee providers, to get these problems found and fixed.”
“These examples of poor-quality workmanship are completely unacceptable and underline the need for change and reform to the current system,” Trustmark stated.
Affected customers can access information about TrustMark’s Find and Fix scheme on their website.
Government insulation schemes, which have been in operation for over 15 years and have incurred billions of pounds in public funds, were intended to improve home warmth, reduce carbon emissions, and assist vulnerable populations in lowering energy expenses.
However, as previously reported by BBC News, numerous instances of substandard work have resulted in dampness, black mold, and, in some cases, dry rot.
The government has assured that necessary repairs will be provided at no cost to consumers.
According to the government, the original installer is responsible for rectifying the issues, with guarantees covering repairs up to £20,000 in cases where the installer becomes insolvent or fails to adequately address the problem.
However, the committee cautioned that repair costs can exceed this amount.
Last year, BBC News highlighted a case in Luton where damage resulting from defective external wall insulation was projected to cost over £250,000, a bill covered by the installer’s insurer.
The Department for Energy Security and Net Zero anticipates that only a small number of individuals will require financial assistance for repairs.
However, the Public Accounts Committee has accused the Department of understating the magnitude of the problem and has deemed their proposed solution “not credible.”
While the committee’s report primarily focused on work conducted since 2022, BBC News has interviewed homeowners who had their properties insulated under earlier government schemes and are also seeking assistance.
In October, the National Audit Office, the government spending watchdog, suggested that the insulation schemes may have involved between £56m and £165m worth of fraud.
However, MPs on the committee suspect that the actual level of fraud is significantly higher.
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