Tens of thousands of residences in the UK that had energy efficiency upgrades through a government initiative are now facing significant issues like dampness and mold, according to a recent report by the National Audit Office. The scheme, known as the Energy Company Obligation (ECO), aims to address fuel poverty and cut carbon emissions by mandating energy companies to finance the installation of measures like insulation in households. However, the report exposed major flaws in the program, with around 22,000 to 23,000 homes experiencing problems with external wall insulation and 9,000 to 13,000 homes with internal insulation encountering faults.
The issues have been attributed to a lack of skilled workers, subcontracting to uncertified individuals, ambiguity in standards, and shortcuts taken during installation. Despite efforts to enhance consumer protection, including appointing TrustMark, shortcomings in oversight have allowed for subpar installations and potential fraud. Businesses were found to have made false claims for installations in thousands of homes, amounting to millions of pounds defrauded from energy suppliers under the ECO scheme.
Gareth Davies, head of the NAO, emphasized the importance of schemes like ECO in fighting fuel poverty but called for urgent reforms to prevent poor-quality installations and fraud. Meanwhile, Simon Francis from the End Fuel Poverty Coalition criticized the system for allowing inadequate workmanship, leading to hardships for many households. He stressed the need for quality assurance, proper training for installers, and swift rectification of errors within the government’s Warm Homes Plan.
Minister for Energy Consumers Martin McCluskey acknowledged the systemic failings in solid wall insulation installations and outlined the government’s efforts to rectify the situation by ensuring all substandard installations are fixed without cost to the residents. He highlighted ongoing reforms to simplify the process for homeowners and ensure accountability in case of errors, aiming to provide swift resolution to any issues that may arise.
