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The UK government’s flagship energy efficiency scheme has been blighted by “unacceptably poor” work that has damaged people’s homes, according to government findings published on Monday.
Ninety-eight per cent of all external wall insulations fitted under the Energy Company Obligation scheme since 2022 need corrective work, as does 29 per cent of the internal wall insulation, according to the results of sample audits.
In a written statement to the House of Commons, Martin McCluskey, minister for energy consumers, said the work had created “serious problems with mould and damp” in the worst cases.
McCluskey said the problems were the result of “unacceptably poor standards of work from a number of contractors, enabled by a flawed oversight and protection system established by the previous government”.
“People placed their trust in the system to deliver safe, long-lasting home upgrades that would reduce their energy bills, but they have been severely let down,” he added.
He said 38 installers had been suspended, while the government was also introducing new restrictions aimed at stopping installers “evading accountability”.
The findings pose major challenges for the Labour government as it tries to boost energy efficiency as part of its drive towards cleaner energy and cutting energy bills, amid doubts from opposition parties over whether its targets are achievable.
ECO was set up in 2013 by the Conservative-led coalition government and requires energy suppliers to fund energy efficiency improvements in lower income households, carried out by retrofitting companies around the country.
Its fourth iteration, ECO4, started in 2022 under the previous Tory government, alongside a sister programme, Great British Insulation Scheme, in 2023, formerly known as ECO+.
Energy regulator Ofgem started an audit of the programmes in April after ministers were warned about problems by Trustmark, a government-endorsed vetting scheme.
For external wall insulation fittings, 92 per cent of the 378 properties audited were found to have “major non-compliance”, meaning the performance of the system is affected and repair work is required.
A further six per cent were found to have “category one” problems, meaning there was a risk to the property or health and safety.
For internal wall insulation fittings, 27 per cent had “major non-compliance” and 3 per cent were in “category one”. The government said the problems went beyond “any reasonable tolerance level”.
In his statement, McCluskey said: “This government is acting — prioritising help for those households who might be affected whilst ensuring we learn the lessons from these failures.”
