A recent report has revealed a shocking truth: almost all external insulation installed under the previous government's energy efficiency scheme is in dire need of repair or replacement. This is a major blow to thousands of homeowners who trusted the scheme, only to be left with poorly fitted cladding that could lead to damp and mould issues.
The National Audit Office (NAO) investigation found that a staggering 98% of the roughly 23,000 homes fitted with external wall insulation under the Energy Company Obligation (ECO) and Great British Insulation Scheme (GBIS) require immediate repairs. Furthermore, 29% of the 9,000 to 13,000 homes with internal insulation also face significant problems. And the situation is even more critical for over 3,000 installations, which pose health and safety risks that demand urgent attention.
Simon Francis, coordinator of the End Fuel Poverty Coalition, summed it up: "The report exposes a system that has allowed cowboys to slip through, leaving thousands of victims in distress and eroding public trust in efforts to address the cold, damp housing crisis."
The ECO and GBIS initiatives aimed to tackle fuel poverty and reduce carbon emissions by requiring energy companies to fund energy efficiency measures. However, weak government oversight and inadequate monitoring led to thousands of substandard installations, putting homes at risk of damp, mould, blocked ventilation, and exposed electrical cabling.
As a result, homeowners found themselves unable to remortgage or sell their properties, with insulation so poorly installed that it could exacerbate cold and damp conditions. In January, almost 40 companies were barred from participating in the schemes due to the growing outcry over the poor-quality work.
"People's homes and lives have been negatively impacted by these faulty installations," said Jess Ralston, an energy analyst. "Many are living in fuel poverty and have faced incredibly difficult times as a result."
The NAO report highlights an "overly complex system" that ultimately failed due to "unclear and fragmented roles and responsibilities" among scheme providers, certification bodies, the regulator Ofgem, and the Department for Energy Security and Net Zero (DESNZ). Installers were able to exploit the system, and fraudsters scammed millions from the scheme, with Ofgem estimating potential fraud claims ranging from £56 million to £165 million.
Sir Geoffrey Clifton-Brown MP, chair of the Commons' public accounts committee, described the retrofitting scheme failures as "stark." He emphasized the need for clarity and a robust system to prevent these failings from recurring, ensuring households can fix their homes without further complications.
The government has acknowledged the systemic issues and taken steps to protect households, promising comprehensive reforms to make the process clear and straightforward. Minister for Energy Consumers, Martin McCluskey, stated, "We are committed to fixing the broken system and ensuring that consumers are guaranteed a swift resolution to any problems."
Installers are held liable for the entire cost of rectifying faulty insulation installations under the scheme, and affected households are encouraged to reach out to Ofgem for support.
This situation serves as a cautionary tale, highlighting the importance of robust oversight and quality control in government initiatives. It's a reminder that while well-intentioned, schemes like these can have unintended consequences when not properly executed.
