An investigation has uncovered catastrophic failures in government-backed home insulation schemes, with nearly every property receiving certain types of insulation now requiring expensive repairs due to poor installation quality.
The review found that almost all homes fitted with external wall insulation under recent energy efficiency programs have serious defects that, without corrective action, risk causing damp and mould. Around a third of properties with internal wall insulation face similar problems.
The initiatives, operating between 2022 and early 2025, were financed through levies on energy bills. Energy companies were required to spend these funds improving household energy efficiency, focusing on families in receipt of benefits and buildings that were poorly insulated.
Dangerous living conditions
One Luton resident reports developing breathing problems after external insulation was installed two years ago. This method involves fixing insulation boards to exterior walls and finishing with a protective render. However, when moisture gets trapped inside, ideal conditions are created for dampness and deterioration.
The investigation pinpointed multiple causes: insufficient training, contractors cutting corners for profit, and uncertainty about which technical standards to follow. Between 22,000 and 36,000 homes across both insulation types now require remedial work.
Most concerning, over 1,000 households face immediate safety threats, including exposed electrical cables and blocked heating vents that could create serious hazards.
System failure and fraud
The watchdog overseeing installation quality has received sharp criticism for inadequate monitoring and inspection protocols. This weak oversight reportedly enabled exploitation by unscrupulous operators. Industry regulators estimate fraudulent claims may have been filed for up to 16,500 installations, potentially worth £56 million to £165 million in wrongful payments.
Path forward
The government has promised that homeowners will not pay for repairs and has committed to sweeping reforms to prevent recurrence. The oversight body admitted failings while stressing it acted promptly when issues emerged and kept government informed.
This debacle illustrates the risks of rapidly expanding energy efficiency programs without robust quality controls. The combination of ambitious goals, technical complexity, and insufficient supervision created an environment where shoddy work thrived, leaving thousands with homes damaged rather than improved.
Authorities must now simultaneously fix affected properties while reforming programs to guarantee future work meets proper standards and genuinely helps homeowners instead of creating new hazards.