Almost all the external insulation fitted under the previous government’s energy efficiency schemes is so poorly installed that it will need to be repaired or replaced, according to a National Audit Office (NAO) investigation. Of the roughly 23,000 homes fitted with external wall insulation under the Energy Company Obligation (ECO) and Great British Insulation Scheme (GBIS), 98% require repairs. A further 9,000 to 13,000 homes with internal insulation also have major problems, with 29% of those installations affected.
The NAO found that more than 3,000 installations pose health and safety risks requiring immediate remediation. Poor workmanship has left homes at risk from damp, mould, blocked ventilation shafts and exposed electrical cabling. Some homeowners have been unable to remortgage or sell their properties as a result.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said the report revealed a system that “has let cowboys through the front door”, leaving thousands of victims in misery. He added that substandard delivery and weak oversight had turned what should have been a national success story into a cautionary tale. Jess Ralston, an energy analyst at the Energy and Climate Intelligence Unit, noted that many people living in fuel poverty had seen their homes and lives damaged by these faulty installations.
The NAO blamed “unclear and fragmented roles, responsibilities and accountabilities” among scheme providers, certification bodies, Ofgem, and the Department for Energy Security and Net Zero (DESNZ). Installers were able to game the audit process by obtaining certification from multiple bodies or transferring between them. Fraudsters also scammed millions: Ofgem estimated that between 5,600 and 16,500 homes had falsified claims, potentially costing energy suppliers £56m to £165m.
Sir Geoffrey Clifton-Brown MP, chair of the Commons public accounts committee, described the failures as “stark” and said DESNZ and Ofgem’s efforts remained hampered by weak oversight and an overly complex consumer protection system. The minister for energy consumers, Martin McCluskey, acknowledged “unacceptable, systemic failings” and said the government had taken decisive action to protect households. Installers are liable for the full cost of rectifying faulty insulation, and affected households have been encouraged to contact Ofgem.
