A new report from the National Audit Office investigated the ECO scheme which was intended to tackle fuel poverty, obligating energy suppliers to fund installation of energy efficient measures in households.

However, the scheme has since become a source of suspected fraud activity by some retrofit businesses with the National Audit Office finding evidence of “clear failures”. This was partly manifested in widespread poor-quality energy efficiency installations.

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Commenting, FMB CEO Brian Berry said the findings were “deeply concerning” but “not surprising.”

“For years, the FMB has warned that the lack of regulation in the domestic building sector leaves homeowners vulnerable to poor workmanship and rogue traders,” he added.

“The fact that 98% of homes with external wall insulation under the ECO scheme require remedial work is a stark reminder of the urgent need for reform.”

As such, the FMB is renewing its push for the government to introduce a mandatory licensing scheme for builders.

“Licensing would create a clear route into the industry, raise standards, and protect consumers from harm,” said Brian.

“The government must now act on the NAO’s recommendations and go further by introducing licensing as a cornerstone of its Warm Homes Plan, in line with the recommendations of the Energy Security and Net Zero Select Committee earlier this year.

“We cannot afford to repeat the mistakes of the past.”