Imagine discovering that nearly every single home insulated under a government program is now at risk of damp, mold, and even health hazards. That’s the shocking reality thousands of homeowners are facing today. A recent investigation by the National Audit Office (NAO) has uncovered a staggering failure in the UK’s energy efficiency schemes, leaving families in misery and raising serious questions about accountability. But here’s where it gets even more alarming: 98% of the 23,000 homes fitted with external wall insulation under the Energy Company Obligation (ECO) and Great British Insulation Scheme (GBIS) require urgent repairs. And this is the part most people miss—an additional 9,000 to 13,000 homes with internal insulation are also plagued with major issues, with 29% needing immediate attention. Worse yet, over 3,000 installations pose immediate health and safety risks.
Simon Francis, coordinator of the End Fuel Poverty Coalition, didn’t hold back: ‘The report reveals a system that has let cowboys through the front door, leaving thousands of victims living in misery.’ What was meant to be a lifeline for households battling fuel poverty has instead become a cautionary tale of substandard work and weak oversight. Insulation, when done right, is a game-changer for cutting energy bills and keeping homes warm. But this debacle has shattered public trust, turning a potential success into a national scandal.
The ECO and GBIS programs were designed to tackle fuel poverty and reduce carbon emissions by requiring energy companies to fund home insulation. However, the NAO found that poor government oversight and inadequate monitoring allowed shoddy installations to slip through the cracks. Homes are now at risk of damp, mold, blocked ventilation, and exposed electrical cabling. For many homeowners, this nightmare has made their properties unmortgageable or unsellable, trapping them in unsafe and uncomfortable living conditions. In January, the outcry reached a boiling point, leading to nearly 40 companies being banned from the schemes.
Jess Ralston, an energy analyst, summed it up poignantly: ‘People’s homes and lives have been damaged by these faulty installations, many living in fuel poverty, and lots have faced very difficult times as a result.’ The NAO didn’t mince words, calling the system ‘overly complex’ and ‘ultimately failed,’ blaming unclear roles and fragmented accountability among providers, certification bodies, Ofgem, and the Department for Energy Security and Net Zero (DESNZ).
Here’s where it gets controversial: Installers were able to ‘game’ the system by juggling certifications across multiple bodies, dodging accountability for their poor work. Even more shocking, fraudsters scammed millions from the scheme, with Ofgem estimating falsified claims for up to 16,500 homes, costing energy suppliers between £56 million and £165 million. Sir Geoffrey Clifton-Brown MP labeled the failures ‘stark,’ highlighting that the true extent of fraud remains unknown due to a lack of quality data.
The government has vowed to fix the mess, with Energy Consumers Minister Martin McCluskey promising ‘comprehensive reforms’ and ‘clear lines of accountability.’ But is it too little, too late? Should taxpayers bear the cost of these failures, or should the companies and regulators involved be held personally accountable? And what’s stopping this from happening again? These are questions that demand answers—and we want to hear your thoughts. Share your opinions in the comments below: Do you think the government’s reforms will prevent future disasters, or is this just another band-aid solution?
