Home Energy Efficiency Blog

The recently published National Audit Office (NAO) report into the delivery of ECO4 (Energy Company Obligation) and Great British Insulation Scheme made for deeply concerning reading for Phil Treaton, Strategic Lead for Fuel Poverty, Retrofit & Homes at Groundwork Greater Manchester.

According to the report, DESNZ (Department for Energy Security and Net Zero) and Ofgem estimate that 98% of homes which were fitted with external wall insulation under the ECO schemes have major issues, most of which require remediation.

This figure is shocking but unfortunately not surprising, echoing some of the issues Groundwork’s energy advisors have witnessed first-hand in the delivery of these programmes, causing concern for our mission to ensure people live warm and well in their homes.

The Reality on the Ground

As an organisation providing retrofit assessments and support to households, we understand the real-world challenges faced by both installers and homeowners, particularly when many homeowners are discovering that their properties need preparatory or “hidden” work before the main upgrades can proceed. If the building fabric is in poor condition, or if the home has solid walls, heritage features etc then the scope and cost become even more challenging for either the installer or usually the household to fill the financial shortfall on their property. Navigating the complex systems of eligibility, finance, quality control, and customer engagement can therefore be difficult, even for experienced practitioners.

As such we welcome the NAO’s scrutiny and recognition of the systemic problems that have affected scheme delivery.

Inherent Risks in Scheme Design

The NAO report highlights the inherent risks within the current design and operation of the schemes which include pressures on installers:

to cut costs
overstate efficiency savings
identify eligible properties and households as quickly as possible.

While the role of the Retrofit Coordinator was originally intended to act as a control measure against these pressures, the report identifies a critical flaw: coordinators are often contracted or employed directly by the installer. This creates a clear conflict of interest and, possibly in some cases, an incentive to approve non-compliant installations simply to maintain business relationships.

Groundwork believes that Retrofit Coordinators and installers must be entirely separate entities. This will safeguard the impartiality and integrity of the retrofit process.

Lessons and Recommendations

We strongly agree with the lessons and recommendations outlined by the NAO and believe these must be embedded into future retrofit programme design and delivery.

The following key areas require urgent attention:

1. Clarity and Confidence for Homeowners

Homeowners must be empowered to understand that retrofitting work carried out on their homes meets the right standards, and that there are clear, accessible routes to remediation if these standards are not met.

Independent retrofit advice and support should be made available to help consumers navigate the process and understand their rights.

2. Clear Roles and Responsibilities

Every participant in the process, from assessors and coordinators to installers and regulators, must have a clear understanding of their roles, responsibilities, and accountabilities.

Independent assessment and coordination help ensure that quality and compliance take priority over profit margins.

3. Stronger Incentives and Sanctions

There must be credible deterrents for non-compliance. Action against assessors, coordinators, or installers who deliver substandard or fraudulent work should be swift and transparent. Likewise, non-compliant measures should be rejected outright to protect both consumers and the reputation of the retrofit sector.

Moving Forward

The NAO’s findings serve as a crucial wake-up call for everyone involved in delivering energy efficiency measures across the UK. If the government’s ambitious targets for Net Zero and home energy efficiency are to be achieved, quality, integrity, and consumer protection must be at the heart of delivery.

Groundwork Greater Manchester, like many others in the industry remain committed to supporting households through fair, transparent, and high-quality retrofit programmes. We will continue to work with partners to build a system that truly delivers warm, efficient and safe homes for all.

Phil Treaton

Strategic Lead – Fuel Poverty, Retrofit & Homes