Tens of thousands of homes insulated under government schemes need repairs

A report by a government spending watchdog has revealed that two government schemes aimed at reducing energy consumption through home insulation were poorly implemented on a large scale. As a result, tens of thousands of homes are now in need of remedial work.

Widespread Failures and Consequences

According to the National Audit Office (NAO), a staggering 98% of homes that received external wall insulation under the previous government's programs have defects that could lead to dampness and mould if not addressed. The report also found that almost a third (29%) of homes with internal insulation require replacement.

Mohammed Mahedi, a homeowner in Luton, is one of those affected. Two years ago, he had external wall insulation installed, which involves applying insulation boards to the exterior brickwork and then rendering it to make it waterproof. However, when rainwater becomes trapped behind the render, it can lead to serious problems.

"I wake up every morning, I'm really keen on breathing. I feel it in my neck. I feel it in my lungs," Mahedi said, describing the health consequences. The BBC first reported on the effects of poor insulation in Luton last year, and Mahedi 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," he lamented.

NAO Findings and Government Response

The NAO's investigation focused on work carried out between 2022 and 2025 under two specific schemes: the ECO4 and the Great British Insulation Scheme. These programs mandated energy companies to use levies from energy bills to insulate homes for people on welfare and in substandard housing. The NAO discovered clear defects in the Energy Company Obligation (ECO) program, which led to poor-quality installations and suspected fraud.

Gareth Davies, the head of the NAO, stated that it is now the responsibility of the Department for Energy Security and Net Zero (DESNZ) to ensure that the companies responsible repair all affected homes as quickly as possible. He also stressed the need to reform the system to prevent similar issues in the future.

The NAO, which monitors how public funds are spent, cited several reasons for the substandard work, including an under-skilled workforce, companies "cutting corners," and confusion over which qualifications applied to which jobs. The report found that between 22,000 and 23,000 homes with external wall insulation and up to 13,000 with internal wall insulation now require repairs. More than 1,000 homeowners have been living in homes that pose an immediate health and safety risk due to defects such as exposed live electrical cables or blocked boiler ventilation.

The NAO also sent a letter to TrustMark, a consumer protection initiative established in 2021 to oversee insulation programs. The report noted that there had been poor control and ineffective auditing of the schemes, allowing installers to "game the system." According to Ofgem, the 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.

In response, TrustMark acknowledged that more work needs to be done but stated that it remains "fully committed to providing strong customer protection and confidence." The company claimed that when it first noticed problems in 2024, it took "firm, fair, and decisive action" and kept industry groups and the government fully informed.

Political Blame and Future Plans

Energy Minister Martin McCluskey attributed the failures to "unacceptable, systemic inefficiencies" left by the previous government. He assured the public that the homes would be fixed "at no cost to the customer" and that future plans would involve "comprehensive reforms" and "clear lines of accountability."

This situation highlights the critical importance of proper oversight and skilled labour in large-scale government projects. What measures do you think are most effective in ensuring quality control in such schemes?