The Consumer Protection Association (CPA) published consumer guidance on 24 June 2025 on protecting deposits paid to tradespeople for work in the home. The association, which accredits installers, set out what it describes as standard practice on deposit size, payment method and written agreements.
The CPA states that a deposit should never exceed 25 per cent of the total job value or £7,500, whichever is the lesser amount. It says no deposit is necessary for very small jobs, and that larger projects such as an extension or a re-fit are commonly paid in stages, with a smaller deposit followed by milestone payments. A request for 50 per cent or the full amount before work begins is described as outside standard practice and something that should raise questions1.
On payment method, the guidance describes cash as untraceable and offering no consumer protection, and states that credit card payments carry protection under Section 75 of the Consumer Credit Act. It adds that where a project spans several weeks or months, payments should be made by credit card1.
The CPA also states that money should not be handed over without a signed, detailed contract setting out the deposit amount, when remaining payments are due, and clear start and end dates for the work. It states that a contractor cannot legally use any of the deposit for the works1.
On deposit protection, the CPA says working with a CPA-accredited installer allows a householder to use an official Deposit Protection Scheme, described as an insurance-backed policy offering protection should a contractor cease trading. It says members have access to a certificate once the deposit is paid, and that where a contractor cannot show anything in writing, the householder should assume they are not covered. The guidance notes that every policy differs and that terms and conditions should be read carefully1.
| Point | CPA guidance |
|---|---|
| Maximum deposit | 25% of job value or £7,500, whichever is less |
| Small jobs | No deposit necessary |
| Larger projects | Staged payments with a smaller deposit |
| Payment method | Credit card, not cash |
| Written agreement | Deposit amount, payment dates, start and end dates |
Why it matters for households
A deposit paid before work starts is money spent before any benefit is delivered, and it sits outside the householder's control until the work is done. The CPA's figures give a benchmark for judging whether a request is normal: anything above a quarter of the job value, or above £7,500, falls outside the practice the association describes. For households funding insulation, heating or solar work, the deposit is often the first and largest payment made, so the terms attached to it shape the risk carried during the whole project.
The payment method matters as much as the amount. Cash leaves no trace and no route to redress, while credit card payments bring Section 75 of the Consumer Credit Act into play. Deposit protection schemes, where an installer is accredited, add a further layer if the contractor stops trading. The guidance does not cover every scenario, and it does not say what protection applies where an installer is not accredited.
What happens next
The CPA has not reported any further steps, deadlines or changes to its accreditation requirements alongside this guidance. It directs householders to its deposit protection advice page for more detail1.