Story perspectives

NAO Report Reveals £165M Fraud, Urgent Home Repairs Needed

10/14/2025

Summary

Story summary

A National Audit Office (NAO) report found that homes insulated under the Energy Company Obligation require significant repairs due to poor installation.
Damp and mould affect 98% of affected homes.
Weak oversight and an under-skilled workforce contributed to the failures.
The NAO estimates fraudulent claims could amount to £165 million.
The Department for Energy Security and Net Zero (DESNZ) plans reforms, including a free audit for affected households and oversight.

History

Historical Context

Launched in 2013, the Energy Company Obligation (ECO) aimed to enhance home insulation and reduce energy costs for low-income households. However, a National Audit Office report revealed that 98% of homes insulated under ECO now face damp and mould issues, reflecting historical failures in housing reforms. The estimated £165 million in fraudulent claims highlights the urgent need for reforms to restore public trust and improve implementation.

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Story summary

A National Audit Office (NAO) report found that homes insulated under the Energy Company Obligation require significant repairs due to poor installation.
Damp and mould affect 98% of affected homes.
Weak oversight and an under-skilled workforce contributed to the failures.
The NAO estimates fraudulent claims could amount to £165 million.
The Department for Energy Security and Net Zero (DESNZ) plans reforms, including a free audit for affected households and oversight.

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