The National Audit Office report has placed responsibility on the Department for Energy Security and Net Zero (DESNZ) to ensure that all affected homes are repaired swiftly and at no cost to residents. Energy Consumer Minister Martin McCluskey confirmed that the government will take corrective action and hold contractors accountable.
Between 22,000 and 23,000 homes with external wall insulation and up to 13,000 properties with internal insulation now require remedial work. More than 1,000 homes have been classified as presenting an immediate health or safety risk, including issues such as exposed electrical wiring and blocked boiler ventilation systems.
Investigators found “systemic failings” in the original design and oversight of the Energy Company Obligation (ECO) scheme. Problems included an under-skilled workforce, confusion over technical standards, and evidence that some installers “gamed” the system for profit. Ofgem, the energy regulator, estimates that as many as 16,500 homes were falsely reported as completed, leading to potentially fraudulent claims worth between £56 million and £165 million.
The NAO also criticised TrustMark, the government-endorsed quality assurance body established in 2021 to protect consumers, for weak oversight and insufficient auditing of contractors. TrustMark acknowledged that improvements were needed and pledged to strengthen its inspection and compliance systems.
Gareth Davies, head of the NAO, urged the government to ensure full repairs and implement reforms to prevent future failures. “It must also reform the system so this cannot happen again,” he said.
Energy Minister McCluskey described the findings as “unacceptable, systemic failings” inherited from the previous administration and announced plans for comprehensive reforms to the home energy improvement sector. These will include stricter certification requirements, greater transparency, and clearer lines of accountability among installation firms.
As thousands of homeowners wait for repairs, the scandal has raised broader concerns about the quality control and oversight of national energy-efficiency initiatives. The government now faces mounting pressure to restore public confidence in its environmental housing strategy—ensuring that future efforts to cut emissions do not come at the expense of homeowners’ health and safety.