A new clampdown on cowboy builders has been announced, with a government-backed scheme set to launch in September to help people identify and hire trusted traders. The move comes after Citizens Advice research showed more than one in four UK adults who carried out home improvements work in the past 18 months experienced problems.
In 2024, people lost over £10.3 billion on home and garden maintenance costs due to losses, overpriced costs or unfair practices.
Prime Minister's warning
In an announcement today, Prime Minister Andy Burnham said: "Cowboy builders don't just rip people off."
"They leave families with months of stress, the disruption of unfinished work, and that horrible feeling of being taken advantage of. Not only that, but they give the vast majority of decent, hardworking tradespeople a bad name."
What has been announced?
Businesses who sign up to the Approved Code will be able to demonstrate that they meet higher standards of customer service, transparency and dispute resolution. But it will be down to the public to ensure the person they are hiring is signed up.
A new payment system will also launch next week which will see customers' money held in an account and released when certain parts of the project are complete. Over 100,000 traders will be able to access the Trusted Payment Scheme before the end of September.
Reactions from industry and politicians
The Chartered Trading Standards Institute (CTSI) has welcomed the announcement - but said more work needs to be done to protect consumers. John Herriman, CTSI chief executive, said government schemes like the Warm Homes Plan risks being exploited by fraudulent traders.
He said: "Whilst this announcement is a welcome step forward, CTSI is concerned that funding initiatives like the Warm Homes Plan provides an opportunity for fraudulent trades to capitalise on rising demand for home improvements."
"CTSI would therefore urge the Government to see this as a great first step and to introduce a mandatory licence for tradespeople working in the home repair and maintenance sector, which would make it simpler and cheaper for enforcement agencies – including Trading Standards – to prosecute fraudulent tradespeople."
Andrew Griffith, shadow secretary of state for business and trade, also warned that the new measures also risk piling more paperwork onto legitimate businesses. He added: "The Government would do far better to beef up law enforcement and have tougher sentences for the minority who fraudulently rip off customers, but they have cut police numbers and are letting criminals out of jail early."
Sarah Olney, Liberal Democrat business spokesperson, added: "Rogue operators won't voluntarily sign up – they will simply keep exploiting families in the shadows."
But the Deputy Chief Ombudsman, Furniture and Home Improvement Ombudsman, Judith Turner said the measures will help consumers find trusted traders. She said: "It is vital in building trust in the sector and helping consumers to identify trusted traders who are committed to increasing consumer confidence and resolving disputes fairly and impartially via an established and approved Ombudsman scheme."
