MPs slam ‘abject failure’ over insulation scheme as victims up to £230k out of pocket
Serious Fraud Office to investigate ‘abject failure’ of insulation scheme
- Tens of thousands of homeowners face unaffordable bills, potentially over £230,000, to repair defects caused by the government-backed Energy Company Obligation (ECO) programme.
- The Public Accounts Committee (PAC) reported an 'abject failure' of the scheme, with external wall insulation found defective in 98 per cent of cases, posing health and safety risks.
- The PAC expressed doubt that the government can assure affected individuals will not pay for repairs, especially as costs often exceed the £20,000 cap, and recommended referring the issue to the Serious Fraud Office.
- A senior MP described the 98 per cent failure rate as the 'most catastrophic fiasco' seen by the committee, warning of a significant loss of public trust in future green initiatives.
- The government acknowledges inheriting a 'broken system' and states it is auditing affected properties, remediating over 50% of non-compliant cases, and reforming consumer protection with a new Warm Homes Agency.