Warning as link found between eco insulation and damp in the home
Thousands of homes with an eco-friendly insulation need fixing due to mould issues (Getty/iStock)
A government-backed scheme to install external wall insulation has left thousands of homes with serious issues like damp and mould, according to the National Audit Office (NAO).
The NAO report found that 98 per cent of homes with external insulation and 29 per cent with internal insulation under the Energy Company Obligation (ECO) scheme require major repairs.
A small but critical percentage of installations, up to 6 per cent, present immediate health and safety risks, including potential carbon monoxide poisoning and fire hazards.
Weak government oversight, subcontracting to incompetent firms, and suspected fraud, estimated by Ofgem to be between £56 million and £165 million, contributed to the widespread poor quality.
The Department for Energy Security and Net Zero (DESNZ) and Ofgem have begun taking action, with calls from the NAO and campaigners for comprehensive reforms, improved consumer protection, and free repairs for affected households.