For thousands of families across the United Kingdom, a government-backed promise of warmer, cheaper-to-run homes has turned into an ongoing nightmare. In a revelation that’s sparked outrage and calls for urgent action, ministers have admitted that more than 30,000 homes have been left with botched insulation under flagship energy efficiency schemes since 2022—leaving residents battling damp, mould, and the devastating health consequences that follow.
These findings, first reported by the BBC and echoed by Vox Political, have thrown a harsh spotlight on the Energy Company Obligation (ECO4) and the Great British Insulation Scheme (GBIS), both of which were meant to be cornerstones of the UK’s drive to cut carbon emissions and tackle fuel poverty. Instead, they’ve become a cautionary tale of systemic failure and broken promises.
Energy Consumer Minister Miatta Fahnbulleh did not mince words when addressing parliament in July 2025: “It amounted to systemic failure.” Her statement came after an audit by TrustMark, the government’s own standards body, inspected 60,000 properties treated since 2022 and found that half had not been insulated properly. That means more than 30,000 households have been left with substandard or outright dangerous insulation in just three years—a number that’s left many questioning how such a disaster could have unfolded under the watchful eyes of regulators and ministers alike.
The ECO4 scheme, launched in 2022, required energy suppliers to fund whole-house efficiency improvements, with a particular focus on vulnerable households. The GBIS, added in 2023, aimed to deliver single-measure upgrades—like loft or wall insulation—to homes with poor energy ratings, with the goal of insulating 300,000 homes by 2026. Both schemes were closely linked to the TrustMark accreditation system and overseen by Ofgem, offering what was supposed to be a guarantee of quality and consumer protection.
But the reality, as exposed by the audits, has been far from reassuring. The problems range from solid wall insulation applied without proper ventilation—trapping moisture and creating perfect conditions for mould—to installers leaving gaps in insulation material, using the wrong products altogether, or even forging paperwork to hide shoddy work. As a result, 39 installers have been suspended and are supposed to pay for remedial work themselves. Yet, as Vox Political notes, there are no guarantees families won’t ultimately bear the cost.
The human cost of these failures has been starkly illustrated by the stories of those affected. In County Durham, 93-year-old Margaret Chappell’s home has been ravaged by damp, the walls consumed by brown mould and peeling plaster. “Imagine being nearly a century old and watching the place where you’ve lived for decades crumble around you because the government can’t be bothered to police its own schemes,” wrote Vox Political. Meanwhile, Susan Haslam continues a years-long battle to repair her late parents’ house after insulation work left it damaged, with the government still insisting there is “no widespread issue” with earlier schemes.
Perhaps most harrowing is the case of Mohammed from Luton, who spoke to the BBC about his ordeal. In 2023, Mohammed applied to have external wall insulation installed under ECO4, hoping it would help his father—who suffered from chronic asthma—cope during the cold months. Instead, the botched work led to damp and mould that covered the bedroom walls and worsened his father’s condition. “Day after day, he was forced to inhale this, further weakening his already fragile lungs. My father’s health deteriorated until it was too late,” Mohammed said. After his father’s death, Mohammed found himself unable to sleep in his own bedroom due to black mould, damp, and crumbling plaster. “I have been given nothing but broken promises and false hope,” he told the BBC. “The whole experience has taken such a toll on me mentally.”
These are not isolated incidents. Over the past 15 years, more than 260,000 properties have had solid or external wall insulation fitted under government programmes. While current audits are focused on homes insulated since 2022—on the grounds that “current data suggests there is not a widespread issue” in earlier schemes—residents in places like Chilton, County Durham, whose homes were insulated in 2021, have reported similar problems with damp and mould.
Campaigners say the writing was on the wall long before these schemes were rolled out. Groups like Insulate Britain, whose members were vilified and criminalized for their protests in 2021, warned that poorly executed retrofitting could lead to exactly the kind of health and safety risks now being reported. Steve Gower, a member of Insulate Britain, told Vox Political in October 2021 that the group wanted “proper insulation and retrofit… which will mean quality jobs, valuable jobs, and houses fit for purpose.” He cautioned that failure to act could have dire consequences for residents’ health—a warning that, tragically, has come to pass.
The government, for its part, says it is “working at speed to ensure substandard installations are identified and remediated with no cost to the consumer.” Ministers have also promised to overhaul the consumer protection system “to restore trust and help more people cut their bills.” But with tens of thousands of homes needing repairs, the task ahead is daunting—and many remain skeptical that real accountability will follow.
For those affected, the advice is clear: if your home has had insulation fitted under ECO4, GBIS, or any government scheme since 2010, get it checked for signs of damp, condensation, and mould. The government urges concerned consumers to contact Ofgem for advice and support, by email at [email protected] or Freephone 0808 169 4447, Monday to Friday, 09:30 to 16:30 (excluding bank holidays).
As the scale of the crisis becomes clearer, campaigners and residents alike are demanding answers—and justice. The government’s promise of warmer, more energy-efficient homes has, for too many, become a source of illness, anxiety, and grief. For now, the nation waits to see whether those responsible will be held to account, and whether the lessons of this scandal will finally be learned.
