Select committee: Public Accounts Committee

Conclusion 38

62nd Report - Faulty energy efficiency installations Published 23 Jan 2026 Addressed to HM Treasury
Conclusion (the committee's words)
We pressed the Department on a key outstanding design flaw: retrofit assessors (who provide information about a home’s energy performance) and retrofit coordinators (who manage the project and should check the retrofit is completed to the correct standards) can be appointed and contracted by the installer they are assessing.93 The National Audit Office reported that retrofit coordinators may therefore be incentivised to approve non-compliant installations to maintain business with installers.94 We also received evidence from a range of organisations highlighting this as a key weakness that must be addressed.95 The Department agreed that there is not enough independence between these roles under the relevant standard (PAS 2035).96

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.

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