Firms suspended over failing wall insulation as remediation package announced

Poor-quality wall insulation installed under Energy Company Obligation 4 (ECO4) and Great British Insulation Scheme will be removed and replaced following complaints.

In all 39 businesses have been immediately suspended from installing new solid wall insulation in homes after work failed routine checks.

The Government said ‘widespread’ issues with a ‘failed system’ dating back years and said installers responsible for the substandard work will be forced to fix them free of charge.

Checks carried out by TrustMark uncovered the failings with the Government instructing energy regulator, Ofgem, to oversee a comprehensive repair plan.

What is the scale of the issue?

To the end of November 2024, just over 65,000 external wall insulation and internal wall insulation measures have been fitted in around 65,000 households under the Energy Company Obligation 4 (ECO4) scheme and Great British Insulation Scheme.

What constitutes substandard insulation?

Examples of substandard installation range from missing or incomplete paperwork, insufficient ventilation, or missing or exposed insulation, which if left unchecked could lead to damp and mould.

The Government said that while it is a serious issue, it is not considered a widespread threat to safety, and it is confident the issues are particular to solid wall insulation installed under ECO4 and Great British Insulation Scheme as there is a stronger system of checks in place for other schemes.

What do I do if I think I might be affected?

Ofgem 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, with your insulation work quality checked by qualified professionals. This may include a review of the installation documents or a visit to your property.  

If work is needed, the certification body that oversees the installer, or TrustMark, will arrange to fix the problem as soon as possible, free of change.

Landlords have been told letters will be sent to the address of the property where the work has been done, so if you think your rental property may be affected, advise your tenants to keep a lookout for any post of this kind and pass it on.

The letter will be sent by either Ofgem, the GBIS/ECO4 administrator, TrustMark, the quality scheme administrator or a certification body - the body that oversees the work of your installer 

All organisations involved in the process will use your Unique Measure Reference when contacting you. You can find this number in your letter. If you’re unsure if someone contacting you is genuine, you can contact the helpline listed in your letter.

Announcing the scheme, Minister for Energy Consumers Miatta Fahnbulleh 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.

“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.

“It is clear the existing system of protections for consumers we inherited is in dire need of reform. This will be front and centre of our Warm Homes Plan, as we work to make sure no households are let down in this way again.”

If you have other concerns about your insulation 

If you’ve had insulation fitted under a different government scheme, you should not need to take any action. If you have concerns, you can contact your council or social housing provider. 

If you have a separate complaint about your installation, you can follow the steps set out in the TrustMark complaints process. This includes information on what to do if your installer is no longer operating and how to find your installer’s certification body. 

More information

• The Government is currently consulting on plans to change the way EPCs are calculated with a second consultion on plans to increase the minimum energy efficiency standards of rental homes to a EPC C rating by 2030 in the pipeline.
• Need an EPC? Why not organise it via NRLA compliance arm, Safe2. Part of the NRLA family, Safe2 is a digital platform providing of all forms of property safety certification. All NRLA members are entitled to exclusive discounts when using any of Safe2’s services. Visit nrla.org.uk/safe2 
• The Government currently offers several schemes to support landlords and tenants in improving energy efficiency, including VAT relief on Energy-Saving Materials (ESMs), the Boiler Upgrade Scheme (BUS) and the Home Upgrade Grant (HUG). Click here for more information.