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Watchdog Finds 98% of ECO External Insulation Faulty as Government Moves to Repair Homes

Ministers pledge free audits with no‑cost fixes following a watchdog’s findings of systemic failings.

Overview

  • The National Audit Office says about 22,000–23,000 homes with external wall insulation require major remediation, with a further 9,000–13,000 internal installations also needing work.
  • Roughly 6% of external and 2% of internal installations pose immediate risks such as blocked boiler ventilation and electrical hazards.
  • Ofgem estimates 5,600–16,500 falsified installation claims under the schemes, potentially worth £56m–£165m charged to energy suppliers.
  • Weak oversight, uncertified subcontracting, unclear standards and installers ‘gaming’ certification processes fueled the failures, with TrustMark not flagging systemic problems until October 2024.
  • DESNZ and Ofgem have suspended poor performers, begun contacting tens of thousands of households, offered free on‑site audits with installers liable for fixes, and signalled tighter oversight under a forthcoming Warm Homes Plan.