Background
The Government’s consultation on reforming consumer protection for home upgrade schemes sought views on how households can be better protected when installing measures such as insulation, heat pumps, solar panels and batteries through government-supported schemes.
The consultation followed problems identified with work delivered through the Energy Company Obligation 4 and Great British Insulation Scheme. These highlighted weaknesses in the current system, including fragmented oversight, inconsistent checks, unclear accountability and complicated routes for consumers seeking to have defective work put right.
The Government proposed bringing consumer protection for schemes supported by the Department for Energy Security and Net Zero under a more integrated system. Its proposals included a new consumer protection service, closer government oversight, clearer competence requirements, improved use of data, more targeted auditing and enforcement, and centralised arrangements for complaints, remediation and redress.
Executive summary
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The FMB welcomes the opportunity to create a simpler, stronger and more accountable consumer protection system for home upgrades.
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The priority should be preventing poor-quality work wherever possible, rather than focusing only on complaints and redress after something has gone wrong.
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The FMB supports stronger government oversight, better information sharing, targeted checks on higher-risk work, accessible consumer advice, effective complaints handling and stronger financial protections.
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A licensing or accreditation requirement should be central to the reforms, helping consumers identify trusted firms and stopping poor performers from moving between government schemes and the wider market.
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The Government should respond positively to the Energy Security and Net Zero Committee’s recommendation for national workforce accreditation and contractor licensing as a prerequisite for carrying out retrofit work.
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Consumers should have a simple and accessible route to redress, with clear responsibilities, early mediation and effective financial protection. An ombudsman should be available for complaints that cannot be resolved through earlier stages.
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Any new system must be proportionate and practical for SMEs, avoiding duplicated assessments, unnecessary bureaucracy and high fixed costs that could deter competent firms from participating.
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The reforms should make it easier for responsible businesses to deliver home upgrades while making it harder for poor performers to operate. This should be supported by practical routes for small firms to develop and demonstrate their skills and competence.
