ECO4 Scheme Redress

Tim Farron Excerpts

Wednesday 2nd July 2025 Westminster Hall

[Wendy Chamberlain (North East Fife) (LD)]

I beg to move,

That this House has considered the matter of redress under the ECO 4 scheme.

It is a pleasure to serve under your chairpersonship, Sir John. This debate is about a lot of things. It is about the need to retrofit UK homes to improve their fuel efficiency, training the future workforce and the consumer protection landscape, but it is also about the Government taking responsibility for policy failures. Most importantly, it is about people. Therefore, before I cover the issues with the ECO4—energy company obligation 4—scheme and the wider consumer protection landscape, I want to set out the experience of my constituent, Jackie.

Jackie and her husband live in a gable end cottage. They have worked hard and done well, and are meant to be enjoying their retirement, but they are not. It all started to go wrong just more than a year ago, when, out of curiosity, they filled in a small quiz about rural homeowners without central heating on the Energy Advice Helpline website. They were contacted by a representative by phone and email very quickly, and found themselves put into a pipeline for works to be carried out. They described that period to my team as dizzying and said that they felt under pressure.

Jackie and her husband had checked that the Energy Advice Helpline seemed to be a genuine not-for-profit advice service, but they had not been advised that the project had been given to a company called Central Eco Solutions. Now, some 12 months later, we have just found out that there was a further middle company—a surveyor based in Leeds, who my constituents had never spoken to until yesterday. The workflow that he described was that the Energy Advice Helpline adviser supplied work to him, and then he supplied work to installers.

The work was carried out hurriedly in three weeks at the end of July and start of August last year. Alarmed at the poor quality of work being done in their property, Jackie and her husband started questioning the contractors about who was employing them and what instructions they had been given. It was only at that stage that they found out that Central Eco Solutions was involved. There was no project management, contract or design proposals, and when they asked for technical surveys, they were carried out by someone who was not a surveyor.

Problems became obvious with the works immediately. No care was taken with the preparation. Floors were taken up and cupboards removed without notice. They described a small bookcase being ripped out with a crowbar, and the promises of it being replaced transpired to be completely false. The insulation and plastering had to be redone three times. The team attempted to insulate around a radiator, until they were stopped, but they did manage to insulate over a double socket, making it unusable. One insulation wall was put in at a very non-vertical angle. A joiner was sent to repair the woodwork, but he was instructed only to use MDF in place of pre-existing solid wood, and clearly, did not have the skillset to do the job in hand.

Those are just the snags. The air source heat pump was originally installed on the outside of the gable wall, causing such bad noise and vibration in two bedrooms that they became unusable. Jackie investigated and found it had been bolted directly to the wall, whereas others she had seen were bedded on insulation. When she suggested that as a remedy, the heat pump was removed and placed apart from the building, but pipework was left running at waist height over the pathway to the garden. Most of the snags have still not been resolved. There are uncovered pipes, ruined woodwork, excess pipes creating energy waste, and a slanting kitchen wall.

My constituents have had a terrible year dealing with these issues: chasing Central Eco Solutions for the work to be finished properly, trying to find some sort of guarantee scheme, making complaints, and escalating those complaints with no clear route for doing so. They are not alone. I am telling Jackie’s story, but there are many others in North East Fife and around the country. It is not a problem with just one installation company, because I have heard cases with others; I have been contacted by people all around Great Britain since my debate went on to the Order Paper, who have named different companies that have ruined their homes and left.

This is a Government problem that must be solved. I have questioned the Minister in the House about it previously, and I think she knows that it is a Government problem because she announced in January that she would review the consumer protection landscape, particularly in relation to solid wall insulations under ECO4. However, I have had sight of a letter sent by her team in response to a complaint by a company outwith North East Fife. I was disappointed that the letter makes it clear that, as the Government do not directly fund ECO4, they do not get involved in private and contractual decisions between the parties involved.

That somewhat misses the point. ECO4 may not be taxpayer funded, but it is a Government-backed scheme. For consumers that is the same thing, because that gives the scheme a stamp of Government approval. The Government surely would not, and should not, be backing something that allows traders to carry out unreliable and unsuitable work on somebody’s property. The Government would not be backing something unless they were really sure of what it was—right? In any case, ECO4 is taxpayer funded in some ways, because it is funded by a Government-backed levy on energy customers’ bills. Just because those public funds do not go through the Treasury’s coffers does not mean that there is not a public interest in getting their use right.

I am happy to put on the record that I support ECO schemes: it is incredibly important to upgrade properties so that they are energy efficient. Our constituents need to do that to save money on their bills, and energy efficiency is a must-have in the face of a climate crisis.

[Tim Farron (Westmorland and Lonsdale) (LD)]

My hon. Friend is making an important speech. One in six properties in Cumbria is more than 100 years old. Almost all of them will be single-walled properties, which are incredibly hard to insulate. Yet the award of grants through ECO4 always tends to favour large companies, not the smaller businesses that are better able to retrofit heritage buildings. Should the Government change that so that my constituents can have warmer homes that are also cheaper to heat?