The government is proposing a tougher regulatory framework for home energy retrofit work after poor-quality insulation installed under state-backed energy efficiency schemes left some households needing repairs.
The plans, set out by the Department for Energy Security and Net Zero, come after issues were identified in installations carried out under the Energy Company Obligation (ECO4) and the Great British Insulation Scheme (GBIS), where some solid wall insulation work was found to be defective.
Under the new proposals, a public register of approved installers will be created and a single consumer-facing service introduced to provide advice, oversight and complaints handling across the retrofit process. This should simplify support for households and improve accountability in the sector.
The department also plans to introduce powers allowing companies to be removed or banned from participation in government-backed schemes if they fail to meet required standards, supported by enhanced data monitoring to detect risks earlier.
Changes are also being considered for the Energy Ombudsman, with the government seeking to reduce the maximum time for resolving disputes to 10 weeks, down from current levels. The body would also be given new authority to issue fines to firms that do not comply with its decisions.
Alongside this, the Installation Assurance Authority would increase the level of funding available for repairs to up to £25,000 in eligible cases involving defective insulation installed under ECO4 and GBIS, where guarantees remain valid, including situations where installers have ceased trading. The National Energy Foundation would also provide support for some repair costs where guarantees are missing, invalid or have been cancelled.
Minister for Energy Consumers Martin McCluskey says:
“This government inherited a broken system that left too many people in homes damaged by work that lacked clear oversight, without support when things went wrong.
“That is why we promised to change that system and today we are setting out how we propose to do that. We are building a system that puts consumers first – holding companies to account while introducing better compensation and protections for customers.”
Charlotte Lee, CEO at Heat Pump Association UK, and Retrofit System Reform Advisory Panel member, adds:
“As the heat pump market continues to grow, it is essential that consumers can rely on high standards, clear accountability and effective support should issues arise.
“The proposed reforms have the potential to improve oversight, strengthen quality assurance and create a more joined-up approach to consumer protection across the sector.
“Better use of data and clearer delivery obligations should also help identify issues earlier and drive continuous improvement across the supply chain. Consumer trust is fundamental to the successful rollout of heat pumps, and these measures represent an important opportunity to improve customer outcomes while supporting the growth of a high-quality, resilient market.”
Brian Berry, chief executive of the FMB and Retrofit System Reform Advisory Panel member:
“Too many households have been let down by poor-quality work, damaging trust across the sector. A simpler, clearer system that ensures work is done right first time, and gives consumers confidence in where to turn when things go wrong, is essential to scaling up retrofit and meeting our net zero goals.”
