UK: A government-backed scheme to retrofit external wall insulation on UK homes has been found to have been a massive failure according to the National Audit Office (NAO). The Energy Company Obligation (ECO), which obliged utility firms to install insulation in their customers’ homes, was found to have installed inadequate insulation in 98% of cases, in many cases leading to damp, mould and serious health hazards in affected homes. The scheme began in 2021 and continued to run after the change of UK government in July 2024.
Many homeowners and tenants are now waiting for repairs, with as many as 22,000 – 23,000 properties affected. Around 6% of affected properties with external insulation were found to have problems that present immediate health and safety risks, including poor ventilation that could lead to carbon-monoxide poisoning and electrical safety risks that could lead to fires.
The NAO pointed out that the prevalence of poor-quality renovations was due to work being subcontracted to firms and individuals with little or no experience in the installation of insulation, while anti-fuel poverty campaigners accused the government of letting ‘cowboys through the front door,’ with very little government oversight. The energy regulator Ofgem estimated that the scheme had also been defrauded to the tune of €65-190m by businesses claiming money for installations that had not been carried out.
