London, 17th October 2025– Tens of thousands of UK homes insulated under government programmes before 16 January 2025 have been found to have major defects and now require repairs as government schemes for homes to achieve a minimum level of energy bill savings were improperly executed.
A new report from the National Audit Office reveals that 98 per cent of homes with external wall insulation installations under the Energy Company Obligation (ECO) and Great British Insulation Schemes require repair or replacement.
Roughly around 23,000 homes, along with 29% of internally insulated homes, up to 13,000 homes, have experienced problems such as mold, damp, blocked ventilation, have emerged that would lead to potential health and safety risks to around 1,000 homeowners.
While these initiatives were originally implemented to cut energy bills for homeowners and retrofit houses to be more sustainable, what was incurred was an overly complex system that failed due to poor planning and communication, lack of oversight, contractor quality, and regulatory accountability. These systematic risks have led to the suspension of multiple contractors, with instances of fraud, overstated claims, and falsified installations, costing around £56-165 million.
Chris Davison, CEO of NavLive, commented:
“While these initiatives had good intentions, the lack of planning, inaccurate measurements, and the improper installation methods used by unskilled workers during delivery and oversight have led to these widespread failures, from both the governing bodies and the contracted firms. Buildings require accurate site information, however, with the right teams and tools, such as AI-enabled scanning and digital twin systems, the right information can be captured to complete projects, as well as flag potential risks and serve as a reference for future use, saving millions in repair jobs”
“As the need for more sustainable housing grows, with many houses needing to be brought up to code, the urgency for it to happen quickly is growing, but without proper execution, these plans will not work. Commitment to teams with the right experience in planning and execution, along with the right tools becomes essential to success and restoring public trust.”
“As the government is now under pressure to fix these defects swiftly, the priority must be getting it right this time and not rushing through repairs at the expense of quality and public trust.”