Warm Homes Plan opens door for “cowboy builders”

22 Jan 2026 12:35 PM

The Chartered Trading Standards Institute (CTSI) has welcomed Government funding for consumers to upgrade the energy efficiency of their homes but warns that rising demand for upgrades will increase the opportunities for rogue traders to rip off vulnerable consumers.

CTSI welcomes Department of Energy Security and Net Zero’s (DESNZ) intention in supporting consumers to upgrade the energy efficiency of their homes, which includes the installation of solar panels, insulation, batteries, and heat pumps.

Regrettably, rogue traders have taken advantage of previous similar schemes to defraud consumers or undertake substandard work which causes thousands of pounds of damage to homeowners. Polling commissioned by CTSI in 2024, found that around one fifth (18%) of homeowners were deterred from applying to such schemes because they don’t know where to find a reliable installer.

Trading Standards services have had a number of reports from consumers about the problems they are having with heat pumps, including being told their energy bills would half and they have instead quadrupled, poor installations or installing the wrong size heat pumps, and being left without heating or hot water. Such issues have ended up with heat pumps being removed and boilers being reinstated. Similarly, complaints regarding the poor or unsuitable installation of insulation has seen homes overrun with black mould.

CTSI therefore renews its call to urge the Government to introduce a mandatory licensing system for installers of domestic energy-efficiency measures to make it a criminal offence to trade without a licence on green heating initiatives. This would support legitimate businesses who are undercut by rogue traders, and boost consumer confidence in this new sector.

CTSI would encourage consumers to look for tradespeople who are members of reputable Consumer Codes, such as the Approved Code Scheme (ACS). The Approved Code Scheme, which was originally established by government and is now administered by CTSI, includes members who provide training to their members in the domestic energy-efficiency sector to ensure they are competent to install home energy-efficiency measures.

ACS requires traders who belong to the scheme to adhere to professional standards that align with consumer protection law, and to demonstrate high levels of customer service, including robust complaints-handling and after-care procedures, as well as access to Alternative Dispute Resolution (ADR) services in case disagreements with customers arise.

Code members can also provide reliable, accurate information about energy-efficiency technology and government-backed funding schemes and incentives, helping homeowners find the solutions and funding options that are most appropriate to them.

Steve Playle, CTSI Lead Officer for Energy and Net Zero, said “CTSI welcomes the Government’s intention to support consumers in upgrading the energy efficiency of their homes to help work towards achieving net zero carbon emissions. However, previous schemes have been preyed upon by rogue traders who see an opportunity to make money at the expense of consumers.

“Following previous scheme announcements, numerous ‘energy companies’ were newly registered on Companies House, which CTSI is concerned consisted of many rogue traders looking to capitalise on grant funding. This previously saw poorly installed works causing thousands of pounds of damage to homes and inappropriate measures being installed that end up increasing energy costs for homeowners. CTSI would urge the Government to introduce a mandatory licensing system for installers of domestic energy-efficiency measures to improve consumer confidence and clamp down on rogue traders in this sector”.

Lesley Crompton, Head of Resolution Services at CTSI, said “Ensuring consumers can find a qualified tradesperson to undertake retrofit works is crucial for the ongoing success of the Warm Homes Plan. I would urge consumers to ensure they only appoint tradespeople who are members of reputable Consumer Codes, such as the Approved Code Scheme, to give them greater piece of mind in their decision.”

Notes to editors:

Chartered Trading Standards Institute (CTSI)