Select committee: Public Accounts Committee

Recommendation 7

62nd Report - Faulty energy efficiency installations Published 23 Jan 2026 Addressed to HM Treasury
Recommendation (the committee's words)
The serious failings to protect consumers on these schemes risk undermining confidence in all the Department’s retrofit schemes. The Department believes it is rebuilding confidence through the steps it has taken to date, such as suspending 38 installer businesses, implementing a “robust” reinstatement process, and requiring retrofit coordinators to visit 7 each site in person. We are extremely sceptical that the changes so far are sufficient, especially given the low level of remediation that has taken place to date. For example, there is still no requirement for the retrofit coordinator to be independent of the installer, so the person who is meant to check the retrofit has been completed to the correct standard can be appointed by the installer they are assessing. The Department needs to make further changes before it can be confident there will be no more faulty installations under the current system. Since we took evidence in November 2025, the government announced that it would not continue ECO after the current schemes end, but that it would continue to invest in tackling fuel poverty through its Warm Homes Plan. It is vital, given the Departments strong statement that in the last resort it will stand by householders to ensure their homes are remediated that high priority is given to this pledge even after the scheme ends. The Department accepts that wholesale reform of the system is ultimately required to ensure customer protection and restore the public’s confidence in retrofits. It intends to deliver this reform in line with three principles: the system must be simpler and clearer; there must be stronger central oversight; and there must be clear accountability, redress and remediation when things go wrong. The public have a right to expect that where work is funded by government grant that the government effectively guarantee the work will be done correctly and put right if not. recommendation a. The Department should give high priority to ensuring—and ind

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.

Read the government's response ↗ Report an error