😓 ECO4 and Insulation Schemes

Commons Chamber

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The government has discovered widespread issues with poor-quality solid wall insulation installed under the ECO4 and Great British Insulation schemes, affecting around 65,000 households. Immediate action is being taken, with 39 companies suspended and required to fund repairs, while Ofgem oversees the remediation process. New measures are being introduced to ensure future installations meet high standards, and affected households will be contacted directly to address any issues. The government is committed to overhauling the system to prevent such problems and ensure consumers are protected.

Summary

  • Poor-quality insulation identified: The government has discovered significant issues with solid wall insulation installed under the Energy Company Obligation 4 (ECO4) scheme, which started in April 2022, and the Great British Insulation Scheme (GBIS), which began in May 2023. Around 65,000 households are affected.

  • Audits and suspensions: Routine audits conducted by TrustMark in October 2024 identified widespread problems. As a result, 39 businesses have been suspended from installing new solid wall insulation until they address existing issues.

  • Remediation plan in place: The government has outlined a comprehensive plan for repair and remediation, funded by the installers responsible for the substandard work. Consumers will not have to pay for fixing the problems.

  • Oversight by Ofgem: The energy regulator Ofgem will oversee the repair work, ensuring it is completed swiftly. They are also tasked with conducting quality checks on all affected installations.

  • Consumer communication: Affected households will receive letters from Ofgem within three weeks, detailing the steps being taken and how they can raise concerns. A dedicated gov.uk page will provide additional advice.

  • Future preventive measures: The government is implementing additional monitoring and checks to ensure future installations meet the necessary standards. They are also reviewing the quality of solid wall insulation under other schemes.

  • Systemic overhaul needed: The minister highlighted the need for a major reform of the home insulation system, citing fragmentation and inadequate consumer protections as ongoing issues. The government aims to overhaul the system through the warm homes plan.

  • Cross-party support and questions: There is broad cross-party support for the government’s actions, with MPs raising questions about the proportion of affected installations, the status of suspended companies, and the inclusion of other insulation types like cavity wall insulation in future audits.

  • Focus on vulnerable households: The government plans to prioritize households in fuel poverty and vulnerable groups for inspections and remediation.

  • Engagement with devolved administrations: The government is collaborating with Scottish and Welsh governments to address similar issues, noting that different schemes may have different levels of checks and balances.

Divisiveness

The session exhibits limited disagreement, primarily characterized by cross-party collaboration and constructive scrutiny rather than partisan conflict. While members raised concerns about systemic failures and sought clarity on remediation processes, the tone remained cooperative, with broad agreement on the urgency of resolving insulation quality issues. The few instances of criticism (e.g., historical failures under prior schemes) were balanced by acknowledgments of the government’s proactive steps. The exchange with Sir Edward Leigh on energy policy diverged slightly but did not dominate the session. Overall, the focus was on problem-solving, with minimal adversarial rhetoric.