9 Rejected

Over 32,000 homes affected by major ECO4 and GBIS insulation faults

Conclusion
The Department and Ofgem believe that an estimated 98% of external wall insulation and around a third (29%) of internal wall insulation fitted under ECO4 and GBIS up to mid-January 2025 have major issues that need fixing. Between 32,000 and 35,000 homes are likely to be affected. This is based on audits of a statistically representative sample of 758 homes that had external and internal wall insulation installed under ECO4 and GBIS before mid-January 2025. The site visits, which were commissioned by Ofgem, took place between June and August 2025.14
Government Response Summary
The government disagrees with the Committee's assessment regarding the scale of non-compliant insulation, stating it has greater confidence in local authority retrofit programmes. It outlines ongoing actions to offer on-site audits for all EWI and address IWI concerns under ECO4 and GBIS, noting existing 25-year guarantees.
Government Response
Rejected
HM Government Rejected
1.1 The government disagrees with the Committee’s recommendation. 1.2 The extent and scale of non-compliant external and internal wall insulation under the ECO4 scheme was unacceptable and must never be repeated. The department has greater confidence in the quality of installation and compliance in local authority delivered retrofit programmes and therefore disagree with the recommendation insofar as it relates to schemes other than ECO4 and GBIS. 1.3 Every household with external wall insulation (EWI) installed under ECO4 and GBIS is being and will be offered an on-site audit. Subject to the householder accepting the offer, all EWI installed under ECO4 and GBIS will be checked by an independent, trained and accountable auditor. 1.4 All households that received internal wall insulation (IWI) under ECO4 and GBIS are being written to and can raise concerns and request an audit via the Ofgem contact centre, which will be subject to triage. Where cases meet the threshold of risk factors, households are referred for an on-site audit by an independent, trained and accountable auditor. This includes all ongoing installations. This approach manages priorities and audit capacity in a practical way, taking account of the measured rates of non-compliance. 1.5 All EWI and IWI measures installed under ECO4 and GBIS schemes should have a guarantee that lasts for 25 years, meaning should issues be found in the future, the protections within the guarantee can be invoked within this timeframe.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.5 yr
Report published 23 Jan 2026