UK Government Targets Rogue Retrofit Contractors

The UK Government has unveiled plans to overhaul accountability standards in the country's retrofit sector, introducing powers to ban contractors and mandatory performance monitoring systems.

The reforms follow years of complaints about poor workmanship on retrofitting projects carried out under previous government schemes, particularly solid wall insulation installed under the Energy Company Obligation 4 and Great British Insulation Scheme. 

Ministers attribute much of the blame to inherited scheme design rather than current policy.

The proposals centre on three mechanisms that could reshape how construction firms operate in the government-funded retrofit market: a mandatory installer register, enhanced enforcement powers and strengthened oversight from the Energy Ombudsman.

Mandatory register and ban powers

A new consumer protection service will maintain a public register of government-approved installers, creating a centralised system for tracking contractor credentials and performance across retrofit schemes.

Crucially, this service would have the power to ban installers from government schemes if they fail to meet certain standards. A data-led system that can flag installer performance issues has also been proposed, replacing what officials describe as a fragmented oversight model.

Martin McCluskey, the UK's Minister for Energy Consumers, says the previous system left people without proper recourse.

"This government inherited a broken system that left too many people in homes damaged by work that lacked clear oversight, without support when things went wrong," he explains.

"We are building a system that puts consumers first, holding companies to account while introducing better compensation and protections for customers."

The register could affect how contractors bid for and access government-funded work, with performance data potentially influencing future scheme eligibility.

Strengthened ombudsman enforcement

The Energy Ombudsman would gain new powers to fine companies that fail to comply with its rulings, introducing financial penalties for contractors who do not meet remediation orders.

The service will also become more efficient, with the Department for Energy Security and Net Zero (DESNZ) confirming that it will cut waiting times by one month, to a maximum of 10 weeks. A clearer route through the courts will also be set out as a last resort for unresolved cases.

Ed Dodman, the Chief Ombudsman for the watchdog, welcomes the move but acknowledges that there is plenty of work to do.

He says: "Strengthening the role of Energy Ombudsman and making the process faster will ensure consumers can not only have quicker access to redress but also have the confidence that issues will be resolved effectively.

"There is still work to be done, and we look forward to continuing to work collaboratively with government, the regulator, suppliers and stakeholders to ensure the system delivers fair, timely and accessible outcomes for all."

Compensation changes and remediation rates

The Installation Assurance Authority has raised the cap on repair costs it will cover for defective wall insulation, increasing 25% to £25,000 (US$33,499). This will apply even if the installer has since gone out of business, creating a compensation safety net that could affect how liability is distributed in the sector.

Government figures suggest more than 60% of identified insulation issues have already been remediated through an existing audit programme, though these reforms will see that number increase significantly.

Gillian Cooper, the Director of Energy at Citizens Advice, says that clearer routes to redress have been long overdue.

"Providing routes to impartial advice and redress where needed will give consumers confidence to adopt vital retrofit measures," she says.