NHF in discussions with government over suspended insulation firms

Routine checks carried out by independent body TrustMark uncovered the poor-quality insulation, which had been installed under the Energy Company Obligation 4 (ECO4) and Great British Insulation schemes.

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.

DESNZ said the findings were “a serious issue”, but they were not considered a widespread threat to safety.

Official statistics showed that to the end of November 2024, just over 65,000 external wall insulation and internal wall insulation measures had been fitted in around 65,000 households under the two affected schemes. 

Other government retrofit schemes include the Home Upgrade Grant, Local Authority Delivery and Social Housing Decarbonisation Fund (now renamed Warm Homes: Social Housing Fund).

However, the government said it is confident that these “systemic issues” are confined to solid wall insulation installed under the ECO4 and Great British Insulation schemes.

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.

DESNZ also said it would expand checks of solid wall insulation measures installed under both schemes and implement a “comprehensive plan to begin an immediate repair process”. Energy regulator Ofgem will oversee 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,” it said.

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. 

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 under any government scheme if they do not fulfil their obligation to put any issues right. 

Miatta Fahnbulleh, minister for energy consumers, said “this news will be concerning” for people who have had external or internal wall insulation fitted through the two schemes, but added that “we are taking action to put this right”.

The existing system of protections for consumers “is in dire need of reform”, she said, which 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”.

Ms Fahnbulleh continued: “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.”

In October, Inside Housing reported that residents in Burnley, Lancashire faced damp and mould and tens of thousands of pounds in legal fees after a series of claims around botched cavity wall insulation collapsed.

A spokesperson for SSB Law Victims Support Group, which represents the homeowners, said DESNZ’s announcement is “a step forward in addressing issues with insulation quality”, but it “falls short of addressing the real crisis”.

They said: “The focus on solid wall insulation, which has only been installed in approximately 65,000 homes since 2022, overlooks the much larger and longer-standing issue of defective cavity wall insulation.

“We call on the DESNZ to urgently implement a comprehensive audit of cavity wall installations and provide a clear pathway for affected homeowners to receive the repairs and compensation they deserve.”