The government has today announced a crackdown on companies accused of installing poor-quality wall insulation through the Energy Company Obligation 4 and Great British Insulation Scheme.
The Department for Energy Security and Net Zero (DESNZ) confirmed this afternoon that 39 firms have been suspended from installing insulation under the schemes, following complaints that poorly installed insulation could lead to damp and mould.
The government said routine checks carried out by the independent TrustMark body have identified widespread cases of poor-quality solid wall insulation installations under the two schemes, which were launched by the previous government.
Examples of substandard installation included missing or incomplete paperwork, insufficient ventilation, or missing or exposed insulation, which if left unchecked can lead to damp and mould.
The ECO 4 and Great British Insulation Schemes have provided thousands of households with free or heavily subsidised energy efficiency improvements, including the installation of solid wall insulation.
However, the schemes have been the subject to reports of long delays and complaints from some households that substandard work has resulted in damp and mould in their properties.
The government said that in addition to suspending businesses found to have undertaken substandard work it has instructed them to undertake repairs at no additional cost to households.
Ofgem has been appointed to oversee the repair work and the watchdog has now begun writing to all the households affected, explaining that qualified professionals have started a system of checking every installation under these schemes.
In some cases, an on-site visit will then follow to determine whether any insulation work carried out requires a repair. If it does, the certification body that oversees the installer, or TrustMark, will arrange to fix the problem as soon as possible, the government said.
"I know this news will be concerning for people who have had external or internal wall insulation fitted through either scheme we have inherited," said Minister for Energy Consumers Miatta Fahnbulleh. "That is why we are taking action to put this right, forcing installers to fix any poor-quality installations as soon as possible and at their own expense. Affected households should look out for a letter from Ofgem, which will set out steps to resolve any issues."
She added that the system of consumer protections the government inherited from the Conservatives was "in dire need of reform", promising that improved consumer safeguards would be central to the upcoming Warm Homes Plan, which aims to upgrade and expand domestic energy efficiency programmes in support of the UK's fuel poverty and climate goals.
The government said that currently energy efficiency programmes were delivered by "several organisations with different roles and responsibilities, producing a fragmented and confusing system of protections for people wanting to make their homes more energy efficient".
It promised that the Warm Homes Plan, which is expected later this year, would deliver a "sweeping overhaul" of the energy efficiency landscape to make it easier for households to undertake energy-saving improvements with confidence.
The news was welcomed by Stew Horne, head of policy at Energy Saving Trust, who said: "We're encouraged to hear that measures are going to be taken to resolve poorly installed solid wall insulation. It's equally important that steps are now taken to strengthen consumer protection and support going forward, to ensure households have confidence when upgrading their homes. As highlighted by the Minister for Energy Consumers this afternoon, high-quality insulation is vital to permanently reduce people's energy use and lower bills, while also making homes warmer.
"That's why we're continuing to call for a national expert advice service in England which provides all households with impartial, tailored advice. This will help people to feel confident about what the right measures are for their home and help them access support if they experience problems."
James Dyson, senior researcher at think tank E3G, said: "The only long term way to make Britain's cold and damp homes warm and affordable to heat is good quality insulation. But the faulty protections and standards the previous government put in place let cowboy builders do botched jobs. The current government must improve insulation standards to ensure this never happens again, and then redouble its commitment to the Warm Homes Plan, so people can live in warm, comfortable homes that keep energy bills low."