Nearly 30,000 homeowners find themselves in precarious situations, grappling with unsafe living conditions and exorbitant repair costs following a government-backed energy efficiency initiative. Launched in 2022, the Energy Company Obligation (ECO) scheme was designed to assist vulnerable households in upgrading their homes with insulation, heat pumps, and solar panels. However, a recent report highlights what MPs have described as an “abject failure” of the programme, leaving many feeling betrayed and abandoned.
A Shocking Breakdown of Standards
The ECO scheme, financed through levies on energy bills, aimed to improve energy efficiency for low-income families. Yet, four years into its implementation, the results have been dire. Katie Barrett, 51, from East Sussex, shared her harrowing experience with the scheme. After a poorly executed insulation job in February 2024, she now faces a staggering £40,000 bill to rectify the damage.
“I got signed off from work six months afterwards because my health has got so much worse,” Barrett lamented, highlighting the toll the situation has taken on her well-being. The contractor responsible for her installation has since entered administration, leaving her in a precarious position regarding repairs.
According to the National Audit Office, a staggering 98% of external wall insulation installations under the ECO scheme were found to be defective. The report attributed these failures to subcontracting practices, insufficient oversight, and a lack of competent contractors. With many original installers now out of business, homeowners are left uncertain about the prospects of necessary repairs.
Homeowners Share Distressing Accounts
Helen Cresswell, 51, from South Wales, described her own nightmare with the ECO scheme. Her experience with a new heating system installation turned chaotic when the contractor removed her old boiler without consultation, leaving her home in disarray.
“The radiators were too big for the rooms; two of the rooms literally turned from a double room to a single,” she recounted, expressing frustration over the lack of communication and care from the installers. The aftermath left her with new damp issues, exacerbating her health condition and creating further distress for her family.
Cresswell’s situation was compounded when her daughter’s cherished memory bear, crafted from her late husband’s shirt, was damaged during the installation process. Like Barrett, Cresswell also faced the challenge of dealing with a contractor that has since gone into administration, leaving her with little recourse for remediation.
Government’s Response and Future Plans
In light of these serious concerns, the government has announced the discontinuation of the ECO scheme in last year’s Budget, which is projected to reduce energy bills by £150 annually for the average household. The newly introduced Warm Homes Plan, comprising a £5 billion public investment, aims to address these issues by ensuring families have access to necessary insulation and green technology.
Energy Consumers Minister Martin McCluskey stated, “We inherited a broken system from the previous government… We are cleaning up this mess.” He assured that all households with external wall insulation installed under the ECO scheme would undergo audits at no cost and that no family should face financial burdens to rectify the issues caused by the faulty installations.
To further bolster consumer protection, the government plans to establish a new Warm Homes Agency, which aims to streamline oversight of retrofit work and enhance quality standards.
Why it Matters
The failures of the ECO scheme represent not just a significant oversight in government policy but a profound impact on the lives of thousands of homeowners. As the government seeks to rectify these issues, the urgency for effective oversight and accountability in energy efficiency programmes has never been more critical. The experiences of those affected serve as a stark reminder of the importance of reliable systems in safeguarding the well-being of vulnerable populations across the UK.
