Licensing builders must happen following ECO debacle, says FMB

FMB warns that poor oversight in the ECO scheme shows an urgent need for builder licensing to protect consumers and restore trust in retrofit work

The National Audit Office (NAO) report, highlighting widespread failures in the Government’s ECO energy efficiency scheme, demonstrates that without a mandatory licensing scheme for domestic builders, poor-quality installations and rogue practices will continue to undermine public trust and government efforts to improve energy efficiency, according to the Federation of Master Builders (FMB).

Brian Berry, chief executive of the FMB, commented: “The NAO’s findings are deeply concerning but unsurprising. For years, the FMB has warned that the lack of regulation in the domestic building sector leaves homeowners vulnerable to poor workmanship and rogue traders. It's not right that any Tom, Dick or Harry can call themselves a builder without any minimum standards in place.”

He argues that 98% of homes with external wall insulation under the ECO scheme require remedial work, a stark reminder of the urgent need for reform.

“As there is little oversight, apart from a complex web of schemes which are frankly covering for a lack of intervention from government, even well-intentioned schemes like ECO risk are being undermined by substandard delivery.”

Berry believes a mandatory licensing scheme for all domestic retrofit work would be a positive first step toward licensing domestic builders, which is clearly sorely needed.

“This whole saga has once again tainted hard-working builders because rogues have ripped off consumers by falsely claiming money for non-existent schemes, when energy bills are sky high, and then gone on to deliver shoddy work.”

He argues that licensing would create a clear route into the industry, raise standards, and protect consumers from harm.

“The government must now act on the NAO’s recommendations and go further by introducing licensing as a cornerstone of its Warm Homes Plan, which aligns with the recommendations of the Energy Security and Net Zero Select Committee earlier this year. We cannot afford to repeat the mistakes of the past.”