An Insulation Debacle: How Government Schemes Left Thousands Living in Damp and Danger

Two government schemes designed to reduce energy consumption through home insulation have been found to be severely flawed, according to a report by the National Audit Office (NAO). A shocking 98% of homes that received external wall insulation under these schemes are now facing significant damp and mould issues, which if ignored, could lead to serious health risks.

The analysis revealed that nearly 30% of homes with internal insulation also require urgent repairs. Energy Consumer Minister Martin McCluskey reassured the public that necessary fixes for affected homes will come at no cost to homeowners.

Personal accounts of suffering, such as that of Mohammed Mahedi from Luton, illustrate the human toll of these failures. He described waking up with severe breathing difficulties due to the faulty insulation that was meant to improve his living conditions but instead exacerbated them.

The NAO’s report focused on two specific schemes: ECO4 and the Great British Insulation Scheme, initiated to provide insulation for low-income households and those in dire need of improved energy efficiency. However, the NAO identified “clear failures” in the design of the Energy Company Obligation (ECO) scheme, linking it to poor-quality installations, potential fraud, and an under-skilled workforce. Other contributing factors included businesses cutting corners and confusion over standards for insulation work.

With up to 23,000 homes needing repairs due to external insulation faults and around 13,000 facing issues from internal installations, the situation is dire. Alarmingly, more than 1,000 homeowners are living in homes that pose what the audit described as an “immediate health and safety risk” due to issues like exposed live electrical cabling.

The NAO also criticized TrustMark, the consumer protection body overseeing insulation quality, for its weak monitoring and auditing practices, which allowed businesses to manipulate the system. There are allegations that approximately 16,500 homes had claims for insulation installations potentially falsified, costing energy suppliers between £56 million and £165 million.

In response, TrustMark has acknowledged the need for improvement and promised stronger consumer protection measures moving forward. Energy Minister McCluskey has labeled the findings as uncovering “unacceptable, systemic failings”, pledging to implement comprehensive reforms and establish clear accountability in future insulation initiatives.