Recommendation 39

Ultimately, the Department made its position very clear. It told us there were “serious failings at every level of the system that are systemic” and that it intends to reform the system to better protect consumers.97 Since we took evidence in November 2025, the government announced that it would end ECO, with no levies on bills from April 2026, but that it would continue to invest in tackling fuel poverty through its Warm Homes Plan.98 The Department told us that Ministers had set out three principles for future reform of the system: the system must be simpler and clearer; there must be stronger central oversight, including a much stronger expectation to get things right the first time and appropriate sanctions; and there must be real accountability, with clear redress and remediation when things go wrong. It plans to provide further detail on the reforms in its Warm Homes Plan.99 91 Q 100 92 Qq 82, 100, 102 93 Q 111; C&AG’s Report, Figure 4 and para 4.9 94 C&AG’s Report, para 4.9 95 FEE003, FEE0010, FEE016, FEE0019, FEE0025 96 Q 111 97 Qq 97, 144 98 HM Treasury, Budget 2025, 26 November 2025 99 Qq 97, 98; Retrofit measures under ECO4 and GBIS, Statement by Martin McCluskey on 13 October 2025 23