Tens of thousands of homes insulated under government schemes need repairs

A budget watchdog found that two government programs aimed at lowering energy use by insulating homes were botched on a large scale, leaving tens of thousands of homes in need of remedial work. According to the National Audit Office (NAO), 98% of homes that had external wall insulation installed under the previous government's plans have problems that could lead to dampness and mould if left unaddressed. According to it, almost a third, or 29 percent, of the homes that had internal insulation need to be replaced. The government was taking steps, according to Energy Minister Martin McCluskey, and the homes would be fixed "at no cost to the customer.

Mohammed Mahedi, who had external wall insulation installed to his Luton home two years ago, is dealing with the consequences. Insulation boards are applied to the exterior brickwork of a house and render it off to make it waterproof. When rainwater is trapped behind it, it goes wrong.

I wake up every morning, I'm really keen on breathing. I feel it in my neck. I feel it in my lungs,'' he says. Last year, the BBCfirst reported the effects of poor insulation in Luton. Mohammed is still struggling to get the issue fixed.

We've got a scheme that was supposed to be assisting us, but it's just made it worse.

The NAO's study concentrated on work carried out between 2022 and 2025 on two specific plans, ECO4 and the Great British Insulation Scheme. In 2022, the previous government ordered energy companies to spend billions of pounds, levys on energy bills, on insulating homes around the UK, affecting people receiving welfare and those in very poor housing. However, the NAO discovered clear defects in the Energy Company Obligation (ECO) program, which resulted in

poor-quality installations as well as suspected fraud. The NAO's Gareth Davies, the NAO chief, said it was now up to the Department for Energy Security and Net Zero (DESNZ) to ensure that the companies responsible repaired

all affected homes as quickly as possible.

It must also reform the system so that this does not happen again,

he said. As one of the reasons for the substandard work, the NAO, which monitors how public funds are spent, cited a under-skilled workforce, companies cutting corners, and confusion over which qualifications to use to which occupations. It found that between 22,000 and 23,000 homes that had received external wall insulation, as well as up to 13,000 homes with internal wall insulation were now in need of repairs. According to the NAO, more than 1,000 homeowners have been living in homes that pose a immediate health and safety risk from defects such as exposed live electrical cabling or blocked boiler ventilation.

The NAO also sent a letter to TrustMark, a consumer protection initiative that was established in 2021 to track insulation programs. According to the report, there had been poor control and ineffective auditing of the programs. The NAO said that installers were allowed to game the system. According to Ofgem, the entire industry regulator, companies had falsified claims for ECO improvements in up to 16,500 homes, potentially claiming between £56 million and £165 million from energy suppliers. TrustMark acknowledged that more work remains to be done, but that it remains

fully committed to providing strong customer protection and confidence. When it first noticed problems with the job in 2024, the corporation took

firm, fair, and decisive action,it said, andkept industry groups and the government were kept fully informed at every stage. The NAO report, according to Energy Minister McCluskey, revealed unacceptable, systemic inefficiencies left by the previous government. In the future, he said there will be comprehensive reforms and "clear lines of accountability.