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National Audit Office releases report on energy efficiency installations under the Energy Company Obligation

The National Audit Office has published a report on failures with solid wall insulation installed under the Energy Company Obligation, drawing a call from the Energy Saving Trust for stronger consumer protection.

A newspaper on a kitchen table beside a model of grants and schemes

The National Audit Office has released a report examining recent failures with solid wall insulation installations carried out under the Energy Company Obligation (ECO)1. The Energy Saving Trust, responding to the report, said a significant number of people across Great Britain have been let down by schemes designed to address fuel poverty1.

The trust, which describes the page as most relevant to people living in England, Scotland and Wales, said the findings were deeply concerning1. Its response was written by Stew Horne, Group Head of Sector Intelligence and External Affairs, and the page was last updated on 14 October 20251.

"It's deeply concerning that a significant number of people across Great Britain have been let down by schemes designed to address fuel poverty"
Energy Saving Trust1

The trust said the UK Government must take learnings from the report as it prepares to publish its Warm Homes Plan, and that confidence in proper installation is critical to permanently lower energy bills and to reducing reliance on fossil fuel markets1. It called for the Warm Homes Plan to improve consumer protection and to make the process as simple as possible for households installing energy efficiency measures or low carbon technologies1. It also called for a national retrofit advice service in England to direct households to further support or redress if something goes wrong, so that it can be quickly put right1.

"The Warm Homes Plan is a pivotal opportunity to put right past issues and roll out a refreshed joined-up strategy that instils trust and confidence in households to upgrade their homes"
Stew Horne, Group Head of Sector Intelligence and External Affairs, Energy Saving Trust1

The report itself is not reproduced in the trust's response, and the number of affected installations, the specific defects found and the remediation arrangements are not reported there1. The Energy Company Obligation is the supplier-funded grant scheme through which such work is delivered; the current phase is ECO4, and the wider mechanics of supplier funding are set out in the guide to the Energy Company Obligation. Solid wall work is one of the more intrusive measures installed under these schemes, and the differences between approaches are covered in the guide to solid wall insulation and to internal versus external wall insulation.

Why it matters for households

Solid wall insulation is fitted to the fabric of the home, so defects are not always visible and can be costly to correct. Where an installation is faulty, the expected reduction in heat loss may not materialise, and the household may see little or no change in bills while carrying the disruption of the work. The trust's response frames proper installation as the condition for lasting bill reductions and for reduced exposure to fossil fuel market prices1, which is the practical link between installation quality and a home's energy independence. The failures described also bear on trust: households weighing up whether to have measures fitted depend on knowing that problems will be put right. The trust's call for a route to redress and advice in England is aimed at that gap1. The broader record of faulty installs and remediation is covered in the guide to ECO4 and GBIS insulation failures, and the relationship between insulation and self-sufficiency in energy is set out in Insulation, Glazing and Energy Independence.

What happens next

The UK Government is preparing to publish its Warm Homes Plan, which the Energy Saving Trust describes as the point at which past issues should be put right1. No publication date for the plan is given in the trust's response, and no timetable for any remediation of affected installations is reported there1.

Sources1 cited
  1. Energy efficiency installation failures: our response - Energy Saving Trust, energysavingtrust.org.uk