Recommendations & Conclusions
10 items
6
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
The Department did not give the risk of fraud appropriate priority, and it is likely that the known levels of fraud are a significant under-statement of the true level of fraud. No single organisation has overall responsibility for preventing and detecting fraud on ECO4 and GBIS. The Department did not …
Government response. The government rejected the recommendation to work with the Serious Fraud Office, stating that investigating suspected fraud is already Ofgem's responsibility and referrals have been made. For the other points about fraud risk assessment and prevention, the government agreed that …
HM Treasury
10
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
The audits found: • 98% of homes with external wall insulation have major issues: 92% have defects that will negatively affect the insulation’s performance, often creating the risk of water ingress and mould; 6% have immediate health and safety risks, such as inadequate ventilation, and may also have other major …
Government response. The government disagrees with the recommendation to supervise and check every new external or internal wall insulation project by an independent, competent, and accountable person, but states that it has greater confidence in local authority delivered retrofit programs and is …
HM Treasury
11
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
The Department stressed to us that these failures include a spectrum of issues, from not getting the full benefit of a measure because of gaps in the insulation, through to more serious failings that have caused damp or mould or immediate risks to health and safety, such as an exposed …
Government response. The government disagrees with the recommendation to supervise and check every new external or internal wall insulation project by an independent, competent, and accountable person, but states that it has greater confidence in local authority delivered retrofit programs and is …
HM Treasury
12
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
Faulty installations can have wider impacts on households, beyond just living in unsafe, damp or mouldy homes. Respondents to Ofgem’s survey of people who used its ECO helpline reported being left without central heating over winter and having to seek alternative accommodation, wider damage to their homes such as water …
Government response. The government disagrees with the recommendation to supervise and check every new external or internal wall insulation project by an independent, competent, and accountable person, but states that it has greater confidence in local authority delivered retrofit programs and is …
HM Treasury
14
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
The National Audit Office reported that, as of 11 September 2025, 2,934 homes with external and internal wall insulation with major issues had been remediated.25 This means less than 10% of the estimated 32,000 to 35,000 homes with major issues had been found and fixed almost one year after TrustMark …
Government response. The government disagrees with the recommendation to supervise and check every new external or internal wall insulation project by an independent, competent, and accountable person, but states that it has greater confidence in local authority delivered retrofit programs and is …
HM Treasury
19
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
The National Audit Office also reported that some company directors are closing and restarting their businesses to avoid remediation responsibilities.40 TrustMark told us it has developed a watchlist and can stop a new business operating until it has fixed the faulty work for which its directors were responsible under the …
Government response. The government disagrees with the recommendation to only allow new external or internal wall insulation to be installed through retrofit schemes if supervised and checked by someone who is independent, competent and accountable, as they have greater confidence in the …
HM Treasury
33
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
The Department did not complete a full fraud risk assessment before ECO4 was implemented in 2022. This became a mandatory requirement in Managing Public Money for any new major area of spend in March 2022, but it would still have been considered good practice at the time.77 The Department clarified …
Government response. The government disagrees with referring the issue to the Serious Fraud Office, stating that Ofgem has the responsibility for exploring cases of suspected fraud and can make referrals where appropriate.
HM Treasury
34
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
The Department explained that no single organisation has overall responsibility for preventing and detecting fraud on ECO4 and GBIS.79 Ofgem’s role in relation to fraud is limited to progressing counter-fraud investigations where allegations have been made.80 Ofgem explained to us that it has neither a legislative role nor the ability …
Government response. The government disagrees with referring the issue of fraud to the Serious Fraud Office, stating Ofgem already has the responsibility to explore suspected fraud and make referrals where appropriate. The department will prioritise deterrence and prevention, before harm is done.
HM Treasury
35
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
Ofgem relies on energy suppliers, TrustMark, certification bodies and scheme providers to alert it to any suspicions of fraud. However, while these bodies have responsibilities to report fraud that they have identified, they 76 Qq 20, 28, 56; Letter from the United Kingdom Accreditation Service, dated 27 November 2025 77 …
Government response. The government disagrees with referring the issue to the Serious Fraud Office, stating that Ofgem has the responsibility for exploring cases of suspected fraud and can make referrals where appropriate.
HM Treasury
36
Recommendation
62nd Report - Faulty energy efficiency …
Rejected
We pushed Ofgem and the Department on what they were doing to actively look for fraud, and highlighted that fraud is likely contributing to the high level of defects on external and internal wall insulation.85 Written evidence submitted by members of the Green Homes Group (Ashden, Centre for Sustainable Energy, …
Government response. The government disagrees with referring the issue of fraud to the Serious Fraud Office, stating that Ofgem already has the responsibility to explore suspected fraud cases and make referrals to relevant bodies.
HM Treasury