ECO4 Scheme Redress

Miatta Fahnbulleh Excerpts

Wednesday 2nd July 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)]

It is a pleasure to serve under your chairmanship, Sir John. I thank the hon. Member for North East Fife (Wendy Chamberlain) for securing this important debate and shining a light on the problem, which I agree is systemic, and also for sharing the case of her constituent, Jackie, which is both worrying and heartbreaking. I want to reaffirm the Government’s unwavering commitment to driving up standards—we know we must do this—and to strengthening consumer protection and rebuilding public trust in home upgrades.

On 23 January I informed the House of the discovery of widespread non-compliance in the insulation of solid wall insulation under the ECO4 and Great British insulation scheme. I am clear that blameless families have fallen victim to work that is not up to standard and which, if untreated, could lead to chronic issues of damp and mould spoiling their homes. This, for me, was a wake-up call and clearly shows that the system needs reform. Since then, we have taken clear and co-ordinated action to address the issues and protect affected households. I will set out the steps we have taken.

As I set out in my statement to the House in January, as soon as my Department was made aware of the issues we worked at pace to establish an expanded programme of checks, which we have asked Ofgem to oversee. I am pleased to report that those checks have progressed quickly; where issues have been identified they are already being resolved. I encourage all households who are contacted to have an audit on their property to take up those checks, even if they do not think there is a problem. We are building up a comprehensive picture of the scale and size of the problem and I will update the House in due course.

Our immediate priority was to protect consumers. Alongside the ongoing checks, we are implementing a comprehensive plan to remedy poor quality installations in accordance with the required standards. Where substandard work is identified, we have been clear that it is the installer’s responsibility to put it right at no cost to the household. Some 90% of the installations identified as not being up to standard have already been remediated, I am glad to say. We will continue to apply pressure on installers to take responsibility to fix the issues and not put the burden on individual consumers. If Jackie is struggling to get the system to respond in the way that it should, I will be happy for her to meet me and for us to take up that specific case.

Beyond energy efficiency measures, we are also verifying the quality of installations of two microgeneration technologies—heat pumps and solar panels—that were installed under ECO4. Installers use the publicly available specification standard for energy efficiency, and a standard set by the microgeneration certification scheme for heat pumps and solar. The MCS has been carrying out additional site audits of the microgeneration installations. So far, we have not seen concerning evidence of consumer detriment, but we are completing further checks before we can be assured that there are no systemic problems in the installation of microgeneration technologies. If substandard work is found, the MCS makes installers put it right. It is very important that the people who get this wrong are not allowed to walk away. They must be the ones to remediate the problems.

We were clear that we need further oversight of the system while we bring in bigger reforms, which I will come on to. The National Audit Office is undertaking an investigation into the issues with ECO4 scheme. We welcome that investigation and the insights it will bring. We have also taken steps to strengthen oversight of the wider consumer protection system, so that in the short term, while we bring in wider reforms, we stop problems happening. That includes the UK Accreditation Service increasing rates of inspection of certification bodies, and agreement with TrustMark that a senior Department for Energy Security and Net Zero official will attend its board in an advisory capacity, so that we keep a firm grip on issues as they arise.

Certification bodies have agreed that installers will only be PAS 2030 certified for each measure by one certification body. The latest iteration of PAS 2035/2030 standards, which came into force on 30 March, introduced strengthened requirements to ensure high-quality installations. Energy suppliers have also strengthened their oversight of solid-wall insulation measures, so that there are additional audits and oversight of any measures brought forward.

Those are all important, necessary short-term steps, but it is clear to me that there is a systemic problem. We recognise that and are very clear that we need to put it right. We inherited a situation of many organisations with different roles and responsibilities involved in ensuring the quality of retrofit activity, resulting in a fragmented and confusing system of consumer protections. To address that and to create a clear, more comprehensive set of standards for consumers, we are moving forward with reforms, which we will announce in our warm homes plan to be published in October.

That plan will look at the entire of spectrum, including the training and the capacity building of installers, who are key. It will look at how installers who work in people’s homes are certified and monitored, and the quality assurance regime that we put in place. One insight we found was that capital schemes that tend to be overseen by local authorities and devolved Administrations have far fewer issues because of the level of quality assurance.

The plan will also inform people where to turn for redress when things go wrong, making that as simple as possible. The situation where consumers have to jump through multiple hoops just to get things sorted cannot be allowed to continue. Guarantees must be in place to ensure that, when things do go wrong, consumers do not foot the bill, and work is remediated by the system.

[Wendy Chamberlain]

I am grateful to the Minister for her response. It appears the Government do recognise the scale of the problem. Does she have anything to say about the worrying reports I received when preparing for this debate of people being forced to withdraw complaints before remedial work is carried out by companies? Is there anything we can do there?

[Miatta Fahnbulleh]

I thank the hon. Member for raising that. We will take that away because that is unacceptable. We have been in regular touch with every part of the system since this issue came to light. We are talking to installers, certification bodies, TrustMark, the MCS and Ofgem. I will take that issue away and write to her.

My final point on the reform agenda is that we clearly need a guiding mind overseeing the system. One reason we are in this bind is because we do not have that guiding mind. Let me reassure the hon. Member, who has spoken eloquently, passionately and with great insight about this issue time and again. the Government will take the decisive action that is necessary to protect the interests of consumers. It is essential to restore consumer trust, because we must take people on this journey of upgrading their homes, not just for our clean power mission but because that is the route to drive down bills and tackle the cost of living crisis.

If people do not trust the system, do not trust that upgrades will be of the utmost standards and that, if things go wrong, they will be fixed, they will not come with us on that journey. I am clear that we take these issues seriously. We inherited them but they are ours to fix. We will put in place a reform agenda and, critically, for people who have been affected by ECO4, we are working hard to ensure that the system does what it needs to do—that is, when issues are identified, installers go in and certification bodies TrustMark and MCS do their job to ensure that it is remediated at no cost. In the short term, we are trying to fix the problem we inherited. Then we will draw a line and put in place a system that is fit for purpose so that we can build consumer trust.

Question put and agreed to.