The Serious Fraud Office is poised to launch a major investigation into what MPs have branded an "abject failure" of a government-backed insulation scheme that has left tens of thousands of homeowners facing potentially ruinous repair bills. The Energy Company Obligation (ECO) programme, designed to improve energy efficiency and lower bills, has instead resulted in defective external wall insulation in a staggering 98 per cent of cases, according to a damning report from the Public Accounts Committee.
Homeowners Face Financial Ruin with Bills Exceeding £230,000
Affected households are confronting unaffordable costs to rectify the widespread defects, with some estimates suggesting bills could soar beyond £230,000. The PAC has expressed profound doubt that the government can guarantee these individuals will not be forced to bear the financial burden themselves, particularly as repair expenses frequently surpass the scheme's £20,000 cap. This situation has created significant health and safety risks for residents and represents a severe breach of public trust.
MPs Describe 'Most Catastrophic Fiasco' and Call for SFO Intervention
A senior MP involved in the committee's work described the near-total failure rate as the "most catastrophic fiasco" ever witnessed by the panel. The committee has formally recommended that the matter be referred to the Serious Fraud Office for a thorough investigation, warning that the debacle could critically undermine public confidence in future green energy initiatives and government environmental schemes.
Government Response: Audits, Remediation, and New Agency Plans
In response to the crisis, the government has acknowledged inheriting a "broken system" from previous administrations. Officials state that an extensive audit of affected properties is currently underway, with remediation work already completed on over 50 per cent of non-compliant installations. Furthermore, the government is advancing plans to reform consumer protection measures, including the establishment of a new Warm Homes Agency aimed at preventing similar failures in the future.
The unfolding scandal highlights profound systemic failures in the implementation and oversight of the ECO scheme, raising urgent questions about accountability, consumer safeguards, and the viability of national energy efficiency programmes moving forward.
