The UK government has admitted that more than 30,000 homes have been left with botched insulation installations since 2022 under its energy efficiency programs, including ECO4 and the Great British Insulation Scheme (GBIS). Instead of delivering warmer homes and lower bills, thousands of families now face damp, mould, and health risks linked to poor-quality insulation work. If you’re worried about insulation or want to explore safe energy efficiency upgrades, check your eligibility with Reliant Energy Solutions today.
What’s Behind the Insulation Scandal?
The figures came to light after the government ordered audits of around 60,000 homes insulated since 2022. The findings were troubling: more than half showed problems. That’s over 30,000 homes where insulation wasn’t fitted to proper standards, leaving properties at risk of moisture damage, mould growth, and even structural issues.
Real-life cases highlight the scale of the problem:
- In Luton, one family reported that external wall insulation trapped moisture in the walls, leading to black mould across bedrooms.
- In County Durham, 93-year-old Margaret Chappell has seen her walls crumble under damp and brown mould.
- Other households discovered fungus and dry rot under floorboards after insulation work went wrong.
The Energy Consumer Minister, Miatta Fahnbulleh, admitted to parliament that this amounted to a “systemic failure” in quality control.
Why Did ECO4 and GBIS Go Wrong?
The Energy Company Obligation (ECO4) and GBIS schemes were meant to cut energy bills, reduce carbon emissions, and support vulnerable households. But several issues have undermined those goals:
- Rushed installations by contractors under pressure to meet targets.
- Poor cavity wall and external wall insulation practices, trapping moisture inside.
- Weak consumer protection, leaving homeowners struggling to get remedial work.
- Lack of accountability between Ofgem, TrustMark, and installers.
While many installations have been successful, the failure rate is high enough to dent confidence in government-backed schemes.
What Support is Available for Homeowners?
The government has pledged that remedial work will be carried out at no cost to consumers. Homeowners affected are advised to:
- Contact Ofgem
- Check TrustMark registration for their installer.
- Document all issues with photos and reports.
- Seek urgent medical advice if mould is affecting household health.
Considering insulation or boiler replacement? Avoid risks by applying through a trusted partner like Reliant Energy Solutions. We offer secure upgrades including loft insulation, central heating systems, solar panels, and modern boilers.
What the Government Says?
Following the BBC’s report, ministers confirmed that they are:
- Auditing installations since 2022 under ECO4 and GBIS.
- Committing to remediate faulty work without homeowner costs.
- Preparing to overhaul consumer protections with stricter auditing.
- Exploring ECO5, the next-generation energy efficiency scheme.
However, critics argue that the problems were preventable and that quality checks lagged far behind installations.
Should You Still Trust ECO4?
Despite these setbacks, ECO4 has delivered benefits in many homes. By mid-2025, the scheme had:
- Installed 875,900 energy efficiency measures in 260,400 properties.
- Helped thousands of families reduce bills with boiler upgrades, loft insulation, solar panels, and central heating improvements.
The lesson is not to avoid the scheme entirely, but to make sure you work with approved, reliable providers who guarantee quality and accountability.
Local Impact: From Luton to Birmingham
The insulation issues aren’t just numbers—they’re real families across the UK.
- Luton: Families reported mould so severe they couldn’t sleep in their own bedrooms.
- County Durham: Elderly residents are left battling damp walls.
- Birmingham: Families in temporary accommodation face added risks due to already poor housing conditions.
Housing charities such as Shelter warn that the problem is worsening an already severe housing emergency, where rising rents and limited social housing leave families with little choice but to live in damaged properties.
FAQs About ECO4 and Botched Insulation in the UK
Who pays for botched insulation installed under ECO4 or GBIS?
Homeowners are not responsible for the cost. The government has confirmed that remedial work will be carried out free of charge, funded through ECO4 scheme obligations and installer liability.
How do I know if my insulation was installed correctly?
Signs of faulty insulation include persistent damp patches, mould growth, condensation on walls, or crumbling plaster. If you notice these issues, contact Ofgem or TrustMark to request an inspection.
Is ECO4 still running in 2026?
Yes, ECO4 is active until March 2026. After that, the government is expected to transition into a new scheme, sometimes referred to as ECO5, with a continued focus on reducing carbon emissions and helping low-income households.
Can I still apply for insulation or boiler upgrades under ECO4?
Yes. Thousands of households are still eligible for free or heavily subsidised energy efficiency measures like boiler replacement, loft insulation, solar panels, and central heating upgrades.
How do I apply safely to avoid risks of poor-quality work?
Always use a government-approved provider registered under TrustMark. Working with trusted installers like Reliant Energy Solutions ensures the work is carried out to the highest quality standards.
Final Thoughts
The botched insulation scandal is a reminder that while energy efficiency is essential, it must never come at the expense of safety or quality. Families need warm, dry homes not crumbling plaster and mould. With proper oversight, ECO4 can still deliver on its promise. For homeowners, the safest path forward is to work only with government-approved and trusted providers. Ready to make your home warmer, safer, and more energy-efficient? Start with a free eligibility check at Reliant Energy Solutions.
