Select committee: Public Accounts Committee
Recommendation 2
62nd Report - Faulty energy efficiency installations
Published 23 Jan 2026
Addressed to HM Treasury
Public Accounts Committee Faulty energy efficiency installations All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Nearly one year after the problems emerged, around 3,000 homes with defects had been found and fixed out of the more than 30,000 homes estimate to be affected. TrustMark, the government-endorsed quality scheme, did not notify the Department of high levels of faulty installations of external wall insulation until October 2024, more than two years after the start of ECO4 in April 2022. It highlighted similar concerns with internal wall insulation in November 2024. By mid-September 2025, nearly one year later, less than 10% of the estimated total number of affected homes had been found and fixed.1 TrustMark will oversee the programme to find and fix the remaining homes with faulty external 1 This is based on the midpoint of the estimated range of 32,000 to 35,000. 2,934 remediated homes / 33,500 = 9%. 3 wall insulation, of which it estimates there are around 20,000 as of November 2025. It expects to have audited all relevant homes (providing access is granted) within 15 months of when we took evidence in November 2025. TrustMark and the retrofit sector face a serious challenge in scaling-up audit activities at the pace necessary to meet these timescales. The Department plans to identify faulty internal wall insulation through existing audit processes, but we fear it may be overconfident in expecting this approach to be adequate. It is vital that the remaining homes with defects are found and fixed as soon as possible. As waiting times increase, the likelihood of damage occurring increases, and there are immediate health and safety risks that need urgent attention. recommendation a. In its Treasury Minute response, the Department should set out how it plans to scale-up its find-and-fix programme to meet the 15-month ambition and how it will find all the faulty internal wall insulation. b. Given the severity of the issue for residents of affected homes, the Department should be seeking to deliver the find-and-fix programme within a much shorter timeframe and should updat
From: Public Accounts Committee, 62nd Report - Faulty energy efficiency installations (HC 1229), 23 January 2026
Government response
The government responded to the whole report on 7 April 2026 (deadline 23 March 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations, but disagrees with the recommendation to halt wall insulation installation without independent supervision and with the recommendation to refer fraud to the Serious Fraud Office.
- On wall insulation, it disagrees with the recommendation, noting that every household with external wall insulation under ECO4 and GBIS "is being and will be offered an on-site audit", subject to the householder accepting; internal wall insulation concerns are triaged and referred for audit where they meet "the threshold of risk factors".
- It agrees on the find-and-fix programme: TrustMark "currently intend" it to complete by May 2027, though the department states it is "unlikely" to deliver on a "significantly shorter timescale". It will update the Committee in writing every six months, first in June 2026.
- It disagrees with referring fraud across ECO to the Serious Fraud Office, stating that this "relates to an existing ongoing responsibility of the regulator", Ofgem, which can and does make referrals where appropriate.
- It agrees to publish an annual report to Parliament on retrofit schemes, with the first publication "before Autumn 2027", and "intends to consult" on the design of a reformed consumer protection system during summer 2026.