National Audit Office finds widespread damp and mould issues in government insulation schemes
The National Audit Office (NAO) has found that 98% of the 23,000 homes which benefited from external wall insulation under the ECO4 and the Great British Insulation Scheme will experience damp or mould problems if these issues are not addressed. The health and safety risks associated with these problems have been identified as serious.
External wall insulation typically involves fixing insulation boards to exterior brickwork followed by applying a render. The NAO report highlights that water trapped behind these boards can cause damp, and similar damage has also been observed in about one-third of homes with internal insulation.
Over the past 20 years, more than three million homes have been insulated through government schemes, with billions of pounds spent. However, Jeremy Pocklington, head of the Department for Energy Security and Net Zero, called the failures "unacceptable" and described them as serious failings at every level. He acknowledged that the department did not oversee the schemes properly.
Trustmark, responsible for oversight of the ECO4 and Great British Insulation Scheme, was criticized for poor supervision. Simon Ayers, CEO of Trustmark, stated that the organization raised concerns about faulty installations with the department from late 2022, but the meetings were informal and lacked official minutes.
The Public Accounts Committee chair, Sir Geoffrey Clifton-Brown, described the NAO findings as the "worst in 12 years." Labour MP Clive Betts questioned whether the government should take responsibility for all affected homeowners. Pocklington replied that the focus remains on the two schemes since 2022 and the government's responsibility is to ensure these schemes operate effectively with consumer protections in place.
The department also faced significant pressure due to challenges from the Covid-19 pandemic and energy price shocks linked to the war in Ukraine. The two schemes under scrutiny, ECO4 and the Great British Insulation Scheme, are available to residents in England, Scotland, and Wales.
