Tens of thousands of households in the UK that received energy efficiency upgrades through a government program are facing significant issues, including damp and mold, according to a recent report by the National Audit Office. The report highlighted concerns over immediate health and safety risks in some cases and identified potential fraud amounting to £165 million due to false claims under the Energy Company Obligation.
The ECO initiative, aimed at addressing fuel poverty and decreasing carbon emissions by mandating energy companies to finance home improvements like insulation, has come under scrutiny for its implementation. The NAO report uncovered widespread problems with installation quality, particularly in homes with external wall insulation, where 98% of properties have major defects requiring attention. Additionally, a significant percentage of homes with internal insulation also exhibited serious faults.
Factors contributing to these issues include a lack of skilled labor, subcontracting to uncertified individuals or firms, ambiguous standards, and shortcuts taken during the installation process. Despite efforts to enhance consumer protection by appointing TrustMark in 2021, the system failed to promptly identify installation quality issues.
The NAO emphasized the need for swift action to rectify the situation, urging the Department for Energy Security and Net Zero to ensure affected homes are repaired promptly and to implement reforms to prevent similar incidents. Gareth Davies, the head of NAO, stressed the importance of maintaining quality standards and preventing fraud in energy efficiency schemes.
Concerns were echoed by Simon Francis of the End Fuel Poverty Coalition, who criticized the infiltration of unqualified practitioners into the system, resulting in substandard outcomes for residents. He emphasized the necessity for stringent oversight, proper training for installers, and rapid remedies for any deficiencies.
In response to the revelations, Minister for Energy Consumers Martin McCluskey acknowledged the systemic failures in solid wall insulation installations and outlined the government’s commitment to rectifying poor installations at no cost to consumers. He highlighted ongoing efforts to streamline the process, enhance accountability, and ensure consumer protection in home improvement schemes.
The government’s Warm Homes Plan is expected to prioritize quality assurance through rigorous training, independent inspections, and efficient resolution mechanisms for any issues that arise during energy efficiency upgrades.
