Source · Select Committees · Public Accounts Committee
Recommendation 39
39
Deferred
Systemic failings identified across retrofit system, prompting departmental reform based on principles.
Conclusion
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
Government Response Summary
The government refers to its response to recommendation 2, highlighting the 'find-and-fix' programme and the letter to the Committee dated 6 February 2026 addressing recommendation 3, stating that their approach of holding the system to account will continue after the ECO4 scheme has ended.
Government Response
Deferred
HM Government
Deferred
7. PAC conclusion: The serious failings to protect consumers on these schemes risk undermining confidence in all the Department’s retrofit schemes. 7a. PAC recommendation: The Department should give high priority to ensuring - and indeed should guarantee that within a reasonable period as defined by the Department and communicated to the Committee in the Treasury Minute response - all defective homes are remediated even after the current scheme has ended. 7.1 The government agrees with the Committee’s recommendation. Recommendation implemented 7.2 The government's approach to dealing with the non-compliance issues highlighted in the NAO and Committee’s reports is set out in response to recommendation 2 above; and high priority is being given to the find-and-fix programme. The department’s overall response of holding the system to account, set out in the letter to the Committee dated 6 February 2026 responding to recommendation 3, will continue after the ECO4 scheme has ended.