More than 30,000 households have been left with defects after the 'clear and catastrophic failure' of two Conservative government home insulation schemes, MPs have said. The public accounts committee has called for the Serious Fraud Office to investigate the Eco4 and Great British Insulation Scheme, which left thousands of homes with mould, water ingress and structural damage.
About 23,000 households with external cladding were worst affected, with 98% requiring repairs, while 29% of those with internal wall insulation also suffered damage. The committee chair, Geoffrey Clifton-Brown, described the situation as 'the most catastrophic fiasco' he had seen in his 12 years on the committee, blaming poor communication between organisations and a slow response to emerging problems.
The schemes were part of the energy company obligation, scrapped by Labour and replaced by the warm homes plan. However, the government faces additional costs to fix affected homes, with only 3,000 repairs completed by October last year. The committee found repair costs ranged from £250 to over £250,000 in one case, and some insulation companies have folded, leaving residents without guarantees.
Fuel Poverty Action's Jonathan Bean called for a public inquiry, saying victims are 'sick of vague promises'. The government has since announced audits of all external wall insulation installed under the schemes at no cost to consumers. Minister Martin McCluskey said the previous administration left a 'broken system' that the government is now cleaning up.
