‘Doomed to Fail’ Insulation Schemes Leave Thousands in Unsafe Homes, Say MPs

In one of the most damning assessments of recent public spending, UK MPs have concluded that government‑backed home insulation schemes were “doomed to fail from the start”, leaving tens of thousands of households facing dangerous living conditions, potential health risks and financially crippling repair bills. The House of Commons Public Accounts Committee (PAC) says the fiasco in the delivery of retrofit programmes — aimed at cutting energy bills and improving energy efficiency — has turned into a crisis that risks undermining public trust in future government green initiatives. �

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The two main schemes under scrutiny — Energy Company Obligation 4 (ECO4) and the Great British Insulation Scheme (GBIS) — were launched from 2022 onwards with the goal of upgrading poorly insulated homes, especially for low‑income households. However, national audit reports and subsequent MP investigations have revealed a catastrophic failure of quality control and oversight. �

UK Parliament

In its latest report, the PAC found that more than 30,000 homes across the UK were fitted with insulation that is badly defective, produces damp and mould, and in some cases poses immediate health and safety risks. Audits commissioned by Ofgem have uncovered that an estimated 98% of external wall insulation installed up to January 2025 has major defects requiring remediation, while nearly a third of internal wall insulation also fails to meet acceptable standards. �

UK Parliament

Sir Geoffrey Clifton‑Brown, Chair of the Public Accounts Committee, delivered one of the most severe rebukes from a parliamentary committee in recent memory. “In all that time, a 98% failure rate in a public sector initiative amounts to the most catastrophic fiasco that I have seen on this Committee,” he told reporters, adding that the structure of the programmes — “highly complex, fragmented and poorly overseen” — meant they were almost **“bound to fail.”” �

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A Crisis of Oversight and Accountability

The committee’s report lays bare a series of systemic errors that allowed such widespread failures to occur. From poor scheme design and fragmented responsibilities to inadequate monitoring and auditing, MPs say the government and its agencies did not grasp the scale of the problem for nearly two years, despite internal warnings about risks and non‑compliance. �

UK Parliament

Key figures from the report underline the scale of the problem:

30,000+ homes afflicted with defective insulation. �

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98% of external wall insulation installations found defective during audits. �

UK Parliament

Less than 10% of affected homes had been properly remediated almost a year after problems emerged. �

UK Parliament

Some repair costs in individual homes have exceeded £250,000, far above the typical £20,000 guarantee cap. �

The Independent

The PAC found that because the schemes were so poorly supervised, many households were left waiting for help while damage — such as water ingress, condensation and mould — worsened. The committee also criticised TrustMark, the government‑endorsed quality assurance body, for not alerting officials to widespread defects until late 2024. �

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Financial and Human Costs

The fallout from the insulation failure is not merely technical. MPs warned that people on low incomes, who were the intended beneficiaries of the programmes, are now bearing the brunt of the consequences. Many face living with damp and cold conditions that can worsen respiratory illness, mental health problems, and daily hardship. �

UK Parliament

Compounding public anger, the PAC highlighted that there is currently no credible assurance that households will be fully protected from repair costs if original installers or guarantee providers go bust. In some cases, insurers are covering repairs, but MPs remain sceptical about whether the scale of claims can realistically be met by those firms and financial backstops. �

UK Parliament Committees

Calls for a Fraud Investigation

Perhaps most strikingly, MPs have recommended that the matter be referred to the Serious Fraud Office (SFO). The committee suspects that the current estimates of fraud — based on Ofgem findings — vastly understate the true extent of non‑compliance. Without a single organisation tasked with full oversight of the scheme, gaps in data and accountability may have allowed fraudulent claims and shoddy work to go undetected. �

The Guardian

Sir Geoffrey said the scale of non‑compliance made it “inconceivable” that fraud was not a significant factor. While Ofgem has identified a small proportion of installs as fraudulent, MPs believe the real figure could be much higher. The PAC says referring the case to the SFO would help establish whether criminal prosecutions are appropriate and recover public funds wrongly claimed. �

Construction Enquirer

Government Response and Next Steps

The government, through the Department for Energy Security and Net Zero (DESNZ), has defended ongoing efforts to audit and fix affected homes. Ministers insist no household should be asked to pay to resolve issues arising from the defective work and that the department has paused problematic elements of the schemes while auditing continues. �

UK Parliament Committees

However, MPs remain unconvinced that existing plans are sufficient. They have urged the government to rapidly scale up the “find and fix” programme, provide clearer protection for consumers, and ensure that future retrofit initiatives — including the new Warm Homes Plan — avoid repeating the same mistakes. �

The Guardian

Conclusion

The insulation scandal represents a rare and stark example of how well‑intentioned green policy can backfire disastrously when oversight, accountability and quality assurance are lacking. With thousands of homes still at risk, increasing calls for fraud investigation and growing public frustration, the crisis has become a test of government competence and trust. For many affected families, the priority now is simple: safe, healthy homes — and answers about how it all went so wrong. �