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'Catastrophic failure' exposed in govt insulation initiative



A “catastrophic failure” has been exposed in the government’s insulation initiative, with over 30,000 homes left with defects.


The failures are so widespread, it’s been recommended that the Department of Energy Security and Net Zero be referred to the Serious Fraud Office.

The Public Accounts Committee had analysed the success of the Energy Company Obligation (ECO) which uses two schemes, ECO4 and the Great British Insulation Scheme.

These focus on multi-measure and single-measure retrofits, respectively.

A report has now been published into these schemes’ success rates, with an estimated 98% of homes with external cladding installed up to mid-January 2025 found to require remediation.

Additionally, 29% of homes were found to require remediation for internal wall insulation.

“As a result, schemes that were designed to reduce fuel poverty and improve energy efficiency have instead left some of the most disadvantaged households living in cold, damp or unsafe conditions and experiencing stress, poor mental health and financial costs as they seek repair,” summarised the report.

In terms of remediation, the committee has urged the department to fix these issues as soon as possible.

“Ofgem stated that, so far, they have rejected installations worth £6.7m and have identified 1.75% of the value of the scheme as fraudulent which is just below the department’s tolerance threshold for fraud of 2%,” added the report.

“We think it is inconceivable that with the high level of non-compliance the level of fraud will not be higher, and we think that the Serious Fraud Office should consider this matter.”



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