What's happened
A series of reports reveal that nearly all homes fitted with insulation under the UK's ECO and GBIS schemes require major repairs due to poor installation. Thousands face health risks, suspected fraud exceeds £165 million, and government oversight is heavily criticized. The government promises reforms to address systemic failures.
What's behind the headline?
Systemic Failures in UK Home Insulation
The recent NAO reports expose a fundamental flaw in the UK's approach to energy efficiency schemes: reliance on subcontracted, often unqualified workers, and weak oversight. This has resulted in 98% of external wall insulation installations and 29% of internal insulation needing repairs, with some posing immediate health and safety risks.
The core issue is the misalignment between policy goals and implementation capacity. The schemes were designed to reduce fuel poverty and emissions but failed to ensure quality control, enabling fraud and poor workmanship. The use of distant, large contractors over local tradesmen has further undermined accountability.
This failure is not merely technical but political. It reflects a lack of effective regulation and oversight, compounded by a complex, fragmented system that allowed fraud to flourish—potentially claiming over £165 million. The government’s response, including reforms and new oversight measures, is a step forward but will take time to restore trust.
In the broader context, these failures threaten to undermine the UK’s climate commitments and fuel poverty reduction efforts. The focus must shift from superficial measures to systemic reform—prioritizing local expertise, rigorous inspections, and transparent accountability—to prevent future failures and protect households.
The next phase should involve a comprehensive overhaul of retrofit policies, emphasizing quality assurance and public trust. Without decisive action, the risk remains that similar failures will recur, wasting public funds and endangering residents.
In conclusion, the NAO findings serve as a stark warning: systemic reform is essential to turn the tide on poor-quality insulation and restore confidence in government-led energy efficiency initiatives.
What the papers say
The Independent's articles from October 14 and 16, 2025, provide detailed insights into the systemic failures of the UK's insulation schemes, highlighting widespread poor workmanship, fraud, and oversight issues. The Guardian's Damien Gayle emphasizes the scale of poor installation, with 98% of external insulation needing repairs and some posing immediate safety risks. Bloomberg consolidates these findings, confirming that nearly all installations require remediation. Contrasting opinions are limited, but the consistent theme across sources underscores the severity of the problem and the urgent need for reform. The NAO's investigation reveals that weak regulation, subcontracting to unqualified workers, and fraud have compromised the schemes' integrity, with potential fraud claims exceeding £165 million. The government has responded with promises of reform, but the reports suggest that systemic overhaul is necessary to prevent recurrence and rebuild public trust.
How we got here
The UK's ECO and GBIS schemes aimed to improve energy efficiency and reduce fuel poverty by funding insulation in homes. Weak oversight, subcontracting to unqualified workers, and fraud have led to widespread poor-quality installations, damaging public trust and risking safety. The NAO's investigation highlights systemic failures inherited from previous administrations, prompting calls for urgent reform.
Go deeper
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The National Audit Office is an independent Parliamentary body in the United Kingdom which is responsible for auditing central government departments, government agencies and non-departmental public bodies.
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