62nd Report - Faulty energy efficiency installations
Select Committee
Public Accounts Committee
HC 1229
23 January 2026
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Sixty-second report from Session 2024-26 · published 7 Apr 2026
Recommendations & Conclusions
12 results
13
Conclusion
Not Addressed
Installer suspension and reinstatement process insufficient for widespread insulation failures
Conclusion
To limit further faulty installations, the Department asked the certification bodies and scheme providers, via TrustMark, to suspend installer businesses based on their failure rate. By the end of January 2025, 38 installers had been suspended, preventing them from carrying …
Read more
Government Response Summary
The response addresses a different recommendation regarding a blanket ban on external/internal wall insulation installations, not the specific issues raised in this conclusion about the suspension and reinstatement of installers.
HM Treasury
View Details
15
Conclusion
Not Addressed
Delays in fixing faulty installations increase property damage and health risks
Conclusion
Delays in finding and fixing these homes increase the risk of damage to the property, including damp and mould, and leave people in homes with unaddressed health and safety risks.29 We asked the witnesses how they would make sure the …
Read more
Government Response Summary
The response addresses a different recommendation regarding a blanket ban on external/internal wall insulation installations, not the specific issues raised in this conclusion about delays in finding and fixing faulty installations.
HM Treasury
View Details
16
Conclusion
Not Addressed
Provide regular six-monthly updates to the Committee on external wall insulation remediation progress.
Conclusion
The Department and TrustMark told us that TrustMark would oversee a find-and-fix process for homes with external wall insulation. It would offer audits to all homes with external wall insulation installed through ECO4 or GBIS, provide direct oversight to ensure …
Read more
Government Response Summary
The response addresses a different recommendation regarding a blanket ban on external/internal wall insulation installations, not the specific issues raised in this conclusion about the TrustMark find-and-fix process and optimistic timescales.
HM Treasury
View Details
17
Conclusion
Not Addressed
Current plans for identifying faulty internal wall insulation lack proactive detection of hidden defects.
Conclusion
The Department told us that it plans to identify faulty internal wall insulation through existing audit processes. First, TrustMark and the certification bodies continue to conduct business-as-usual audits. Second, households with concerns can contact their installer and certification body, or …
Read more
Government Response Summary
The response addresses a different recommendation regarding a blanket ban on external/internal wall insulation installations, not the specific issues raised in this conclusion about identifying faulty internal wall insulation.
HM Treasury
View Details
18
Conclusion
Not Addressed
TrustMark's registration process fails to adequately assess installer businesses' financial stability and liquidity.
Conclusion
The original installer is liable for fixing the installation to meet the relevant standards. However, the National Audit Office reported that not all installers are complying with the remediation process.38 We asked TrustMark whether the process for installer businesses to …
Read more
Government Response Summary
The response addresses a different recommendation regarding a blanket ban on external/internal wall insulation installations, not the specific issues raised in this conclusion about the financial stability of installer businesses.
HM Treasury
View Details
20
Conclusion
Not Addressed
Households lack trust in original installers for defect repairs, despite Departmental competency assurances.
Conclusion
Written evidence submitted to us by the Green Homes Group highlighted how some people are unlikely to trust the original installer to fix the issues they created.42 The Department said it is providing assurance to households by ensuring the installer …
Read more
Government Response Summary
The government states that all EWI and IWI measures installed under ECO4 and GBIS schemes should have a guarantee that lasts for 25 years.
HM Treasury
View Details
21
Conclusion
Not Addressed
Guarantees cover remediation costs up to £20,000, excluding compensation for health issues.
Conclusion
If the installer has ceased to trade or fails to fix the issues, remediation costs up to £20,000 should be covered by a guarantee.44 TrustMark confirmed in follow-up correspondence that these policies do not cover compensation for ill health or …
Read more
Government Response Summary
The government states that all EWI and IWI measures installed under ECO4 and GBIS schemes should have a guarantee that lasts for 25 years.
HM Treasury
View Details
22
Conclusion
Not Addressed
The guarantee market for solid wall insulation is notably limited to only three providers.
Conclusion
TrustMark told us that three organisations provided the bulk of the cover.47 In written evidence provided after the oral evidence session, the Department confirmed that the guarantee market for solid wall insulation is limited to three companies: QualityMark Protection, which …
Read more
Government Response Summary
The government states that all EWI and IWI measures installed under ECO4 and GBIS schemes should have a guarantee that lasts for 25 years.
HM Treasury
View Details
23
Conclusion
Not Addressed
Guarantee invocation processes are complex and lengthy, delaying resolution of serious defects.
Conclusion
We asked the witnesses whether they had analysed the guarantee policy wording to ensure they did not include excesses or complex issues that render them useless in practice, or had reviewed the balance sheets of the 39 Q 64 40 …
Read more
Government Response Summary
The government states that all EWI and IWI measures installed under ECO4 and GBIS schemes should have a guarantee that lasts for 25 years.
HM Treasury
View Details
24
Conclusion
Not Addressed
Remediation costs for severe installation defects can significantly exceed the £20,000 guarantee limit.
Conclusion
Where guarantees are invoked, the repairs will likely in some cases cost more than the £20,000 covered by guarantee. TrustMark advises it should normally cost between £250 and £18,000 per home to correct the faulty installations, if it can be …
Read more
Government Response Summary
The government states that all EWI and IWI measures installed under ECO4 and GBIS schemes should have a guarantee that lasts for 25 years.
HM Treasury
View Details
31
Conclusion
Not Addressed
Department acknowledges current quality assurance system is too layered and fragmented.
Conclusion
The Department told us it designed the consumer protection and quality assurance system in response to the 2016 Each Home Counts review, introducing a single quality mark (delivered by TrustMark) and higher standards that consider multi-measure retrofits in the context …
Read more
Government Response Summary
The response addresses a different recommendation, regarding an annual report on retrofit schemes, and not the conclusion about the complex consumer protection and quality assurance system.
HM Treasury
View Details
32
Conclusion
Not Addressed
Organisations within the system failed to adequately warn Department about risks and flaws.
Conclusion
We asked the witnesses why no-one warned the Department about the risks or flaws with the system it had designed, or considered whether the system as a whole was protecting consumers.72 While TrustMark accepted it should have done much more, …
Read more
Government Response Summary
The response addresses a different recommendation, regarding an annual report on retrofit schemes, and not the conclusion about lack of warnings about the risks or flaws of the system.
HM Treasury
View Details