Chartered Trading Standards Institute calls for licensing system to stop rogue insulation installers exploiting government ECO schemes for cash

Shoddy insulation installed under the Government's ECO programme has left Burnley and Pendle homeowners with damp, mouldy homes and crippling fees to remove it.

The Chartered Trading Standards Institute (CTSI) predicts a rise in criminals exploiting people’s confusion about ongoing government schemes to access the money that funds them.

The organisation believes the law should require installers to hold a licence and undergo proper training before retrofitting insulation into people's homes. CTSI also stresses the need for firms to be Trading Standards-approved.

Steve Playle, CTSI's Lead Officer, echoed these views at a Parliament lobby organised by the Burnley Express, SSB Law Victims Support Group, and MPs Imran Hussain and Oliver Ryan yesterday.

Steve said he is "fed up of hearing story after story" of how the installation of energy measures in homes across the country has gone "terribly wrong."

"I keep hearing about the Government not wanting much red tape but the price of not having it is the situation we have now."

Steve said retrofitting is "really expensive" and that the array of schemes causes "complete confusion" for residents, leaving them unsure who to turn to when things go awry.

He believes many unscrupulous traders are attracted to the industry because the public spends billions of pounds on these schemes - and there's a lack of regulation to police installers.

He added: "Anyone can go into business as an installer: no questions asked."

What is the Energy Company Obligation (ECO)?

This government energy-efficiency scheme aims to help reduce carbon emissions and energy bills for low-income households.

Who pays for it?

The retrofit programme is led by large energy suppliers and paid for by a levy on customer bills. Billions of pounds have funded previous rounds. In 2015, Ofgem revealed that insulation had a 10% technical failure rate. Victims have, therefore, raised concerns about the amount of money lost.

Why is the Chartered Trading Standards Institute calling for installers to have licenses?

In a June report on its website, the CTSI said: "A lack of consumer awareness has made the domestic energy-efficiency sector ripe for exploitation by rogue traders using aggressive sales tactics and making misleading claims."

It added that such factors "led to the scrapping of the Government’s Green Homes Grant scheme in 2021, severely dented consumer confidence, and caused many financial service providers to withdraw from funding domestic energy-efficiency projects."

CTSI claims that 28 million households in the UK will need to be upgraded to at least Energy Performance Certificate (EPC) Band C to achieve the Government's Net Zero target by 2050 - costing approximately £249.5b.

What is the CTSI's Approved Code Scheme?

It aims to independently verify if installers have undergone adequate training to install home energy-efficiency measures. Under the scheme, traders must provide reliable, accurate information about energy-efficiency technology and government-backed schemes to help homeowners find the right solutions for them.

They must meet professional standards in line with consumer protection law, handle complaints sufficiently, and provide robust after-care. They must also link residents to Alternative Dispute Resolution (ADR) services.