Insulation firms suspended from government schemes

Thirty-nine companies have been suspended from installing new insulation in people’s homes, after ministers were alerted to reports of poor-quality work.

Construction News can also reveal that energy regulator Ofgem received dozens of complaints from MPs about the quality of work carried out under a flagship scheme.

The Department for Energy Security and Net Zero (DESNZ) said on Thursday (January 23) that checks carried out by TrustMark uncovered examples of substandard solid wall insulation fitted since 2022 under the Energy Company Obligation 4 (ECO4) and Great British Insulation Scheme – both introduced under the previous government.

Issues included missing or incomplete paperwork, exposed insulation and poor ventilation, which can lead to damp and mould forming.

The department said it had suspended the installers in question from the schemes and ordered repairs to be carried out, with those companies bearing the cost.

Ofgem is overseeing the repair work and will be writing to households affected by the problems.

Data obtained by CN under the Freedom of Information Act (FOI) showed that MPs complained to Ofgem at least 23 times about ECO4 issues since it was set up in 2022.

The watchdog said that 18 of the complaints related to work carried out by installers, one related to an air source heat pump and four related to the scheme’s policy.

The FOI officer said there was likely to have been more than 23 complaints as it only searched using the term ECO4 and others may not have written the phrase in their correspondence.

Three complaints were made by customers, with one of those relating to substandard works.

MPs discussed the issues in Parliament on Thursday. Bradford East independent member Imran Hussain said he had long campaigned over the issue and welcomed the measure, but asked why installers of cavity wall insulation were not also being targeted.

Several others in the debate questioned why the government was not looking into problems with cavity foam insulation.

Minister for Energy Consumers Miatta Fahnbulleh said the department was working with TrustMark to examine other types of insulation installed under government schemes as “we have the levers” under those. Non-government schemes have “a different set of mechanisms”, she added.

In a statement, Fahnbulleh added: “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.”

The government has not publicised the list of firms covered by the ban.

Up to the end of November 2024, just over 65,000 external wall insulation and internal wall insulation measures had been fitted in around 65,000 households under the ECO4 scheme and the Great British Insulation Scheme.