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NAO Finds Widespread Failures in UK Insulation Scheme as Government Launches Free Audits

The watchdog blames weak oversight plus fragmented protections for enabling poor-quality work across ECO and GBIS.

Overview

  • The National Audit Office reports that about 98% of roughly 22,000 to 23,000 external wall insulation installations under ECO require major remediation.
  • Approximately 29% of internal wall insulation jobs—around 9,000 to 13,000 homes—also need fixing, with a small share posing immediate risks such as carbon monoxide exposure or fire hazards.
  • Investigators attribute the failures to scheme design flaws, under-skilled subcontractors, and a consumer-protection setup that allowed installers to game audits.
  • The government will offer full, free on-site audits for households with external wall insulation under ECO4 or the Great British Insulation Scheme, send letters within weeks, require no-cost remediation, and has suspended 38 installers.
  • Ofgem estimates 5,600 to 16,500 falsified installation claims worth £56 million to £165 million, costs ultimately borne by bill-payers.