The Department for Energy Security and Net Zero launched a consultation on 17 June 2026 on reforming consumer protection for home upgrade schemes, running until 11.59pm on 10 September 20261. Ministers also announced immediate changes to repair cover for faulty insulation and to the Energy Ombudsman process2.
The consultation proposes a single end-to-end consumer protection service, accountable to government and responsible for system oversight and performance as well as advice, case management and support for consumers; strong binding agreements across the system to enforce delivery obligations; a government-owned data system to identify systemic risks earlier and target audits; and a publicly accessible register of installers and retrofit professionals approved to work on government schemes1. The document sets out 13 proposals across building regulation, assurance, audit and redress, and states that the earliest implementation of a new system is expected from 2028, subject to consultation responses and further design and transition planning3. The wider system reforms in Chapter 2 apply primarily to England only, while the self-certification scheme system operates in England and Wales3.
Martin McCluskey, Parliamentary Under-Secretary of State for Energy Consumers, told the Commons:
"Today we are launching a consultation on consumer protection, seeking views on how we can simplify the current fragmented landscape and establish a single, accessible, end-to-end consumer protection service for home upgrades"
On remediation, the Installation Assurance Authority will now cover the cost of repairs to ECO4 and GBIS solid wall insulation up to £25,000, up from £20,000, where these fall within the terms of the original, still-valid guarantee, including cases where the original installer has gone bust2. The National Energy Foundation will cover relevant repairs for some homes with defective ECO4 and GBIS solid wall insulation where the installer has gone out of business and the guarantee was cancelled, fraudulent or missing; eligible homes will be contacted2. The consultation document reports that 98% of homes with external wall insulation installed under ECO4 and GBIS had major issues requiring remediation, and 29% of homes with internal wall insulation3. McCluskey said ECO4 and GBIS has some of the highest levels of non-compliance that Government have seen4.
On the energy supply market, the government is responding to its consultation on strengthening the Energy Ombudsman. Customers will be able to escalate complaints within a shorter time frame, cutting overall waiting times by a month to a maximum of 10 weeks, and the Ombudsman will be empowered to fine companies that do not comply with a ruling2. The consultation document states that the ECO4 scheme will end in December 2026 following an orderly closedown period, with no comparable successor funded by energy bill levies and delivered at arms-length from government3.
| Measure | Detail |
|---|---|
| IAA repair cover for ECO4 and GBIS solid wall insulation | Up to £25,000, up from £20,0002 |
| Energy Ombudsman maximum waiting time | 10 weeks, cut by one month2 |
| Consultation closes | 11.59pm on 10 September 20261 |
| Earliest implementation of a new system | From 20283 |
Why it matters for households
For a household considering insulation, a heat pump, solar panels or a battery, the practical questions are who is competent to do the work, what happens if it goes wrong, and who pays. The proposals address all three: a public register of approved installers would allow a householder to check whether a firm is approved for government schemes, a single service would replace the current set of organisations a consumer has to navigate, and binding agreements would allow bans from government scheme work1. The installer schemes and consumer codes landscape is currently split between several bodies, which the consultation describes as fragmented3.
The financial protection changes matter most to households with existing faulty work. The £25,000 IAA limit applies only where the original guarantee is still valid and the damage falls within its terms2. Where the installer has gone out of business and the guarantee is missing, fraudulent or cancelled, the National Energy Foundation handles remediation instead2. Households whose costs exceed the guarantee limit are not covered by the new figure; the government says it is working with delivery partners on solutions for the remaining cases4. The consultation document notes that reform of financial protection arrangements, including more consistent requirements and stronger consumer information on guarantees, is itself one of the proposals3.
For disputes with an energy supplier rather than an installer, the shortened route to the Ombudsman reduces the time a complaint can sit unresolved before a decision2. The energy complaints and redress system is separate from the home upgrade proposals, though both were announced on the same day.
What happens next
The consultation runs from 3pm on 17 June 2026 to 11.59pm on 10 September 20261. Responses will be summarised and published3. The government says the earliest implementation of a new system is expected from 2028, with a phased transition starting at the latest from 20283. Homes eligible for free repairs will be contacted by the National Energy Foundation2. A follow-up roundtable with mortgage lenders on spray foam is planned for later this summer4.
Sources4 cited
- Reforming Consumer Protection for Home Upgrade Schemes - GOV.UK, gov.uk
- Greater protections to restore families' trust in home upgrades - GOV.UK, gov.uk
- Reforming Consumer Protection for Home Upgrade Schemes: consultation document (accessible webpage) - GOV.UK, gov.uk
- Energy Market: Consumer Protection - Hansard - UK Parliament, hansard.parliament.uk