Government Insulation Scheme Compensation: Get What You're Owed
Thousands of homeowners have been left with failed insulation installed under government schemes. The 2024 NAO Report exposed systematic failures. Here's how to claim compensation for ECO4, GBIS, and Green Deal disasters.
Am I Eligible for Compensation?
You may be eligible if you meet ANY of these criteria:
Check Your Eligibility
- Government Scheme Installation: Work done under ECO4, GBIS, Green Deal, or earlier ECO schemes
- Defective Work: Damp, mould, condensation, or structural damage caused by the insulation
- Within 6 Years: Installation occurred within the last 6 years (legal guarantee period)
- Not Your Fault: Problems weren't caused by your actions (e.g., blocking ventilation)
- Documented Evidence: You have photos, dates, and paperwork about the installation
Types of Compensation Available
1. Installer Compensation (Most Common Route)
The company that installed your insulation has legal responsibility:
- Full removal costs - Including scaffolding, waste disposal, and reinstatement
- Damage repairs - Structural repairs, replastering, redecoration
- Temporary accommodation - If you need to move out during works
- Alternative heating costs - Increased bills due to failed insulation
- Property value loss - If survey identifies devaluation
- Legal costs - If you need solicitor to pursue claim
Problem: Many ECO4/GBIS installers have ceased trading, making direct claims impossible. In these cases, you may need to pursue energy companies or government schemes.
2. CIGA Guarantee (Cavity Wall Insulation Only)
If your cavity wall insulation was installed with a CIGA guarantee:
- 25-year guarantee covers extraction costs
- Claim directly through CIGA if installer has ceased trading
- Must prove insulation is causing damp (survey required)
- Covers extraction but NOT consequential damage or repairs
How to claim: Visit ciga.co.uk, find your guarantee certificate (should have been provided at installation), and submit claim with damp survey evidence.
3. Trustmark Complaints
If installer was Trustmark-registered (requirement for government schemes):
- File complaint through Trustmark dispute resolution
- Trustmark mediates between you and installer
- Can order installer to rectify defects at their cost
- If installer refuses, Trustmark insurance may cover costs (up to £25,000)
Reality check: NAO Report found Trustmark oversight "not fit for purpose." Many complaints are rejected or take 6-12 months to resolve. However, it's still worth trying as official complaint strengthens future legal claims.
4. Energy Company Obligation (ECO) Complaints
Energy companies fund ECO schemes and have ultimate responsibility:
- Identify which energy company funded your installation (check paperwork)
- File formal complaint citing NAO Report findings
- Request full remediation at energy company's expense
- If rejected, escalate to Energy Ombudsman
5. Legal Action (Last Resort)
If other routes fail, you can pursue legal claims for:
- Breach of contract - Work not completed to agreed standards
- Negligence - Installer failed to meet professional duty of care
- Misrepresentation - False claims about suitability or benefits
Many solicitors now offer no-win-no-fee arrangements for government scheme insulation cases, especially where NAO Report evidence supports claims.
Step-by-Step Compensation Claim Process
Step 1: Document Everything (Week 1)
- • Take extensive photos of all damp, mould, and damage
- • Locate installation paperwork (contract, Trustmark certificate, CIGA guarantee)
- • Note when problems started and how they've worsened
- • Keep records of increased heating costs
- • Photograph any health impacts (mould on clothes, furniture damage)
Step 2: Get Professional Survey (Week 2-3)
- • Book RICS-certified damp and timber survey (£300-£600)
- • Ensure surveyor identifies insulation as cause
- • Request detailed written report with photos
- • Ask surveyor to quantify repair costs
- • Get multiple copies for different claims
Step 3: Get Removal/Remediation Quotes (Week 3-4)
- • Obtain 3 written quotes from accredited contractors
- • Ensure quotes itemize: removal, disposal, repairs, redecoration
- • Include costs for scaffolding, skip hire, temporary accommodation if needed
- • Total up consequential costs (furniture replacement, health costs)
Step 4: Identify Compensation Route (Week 4)
- • Check if installer is still trading (Companies House search)
- • Look for CIGA guarantee if cavity wall insulation
- • Identify energy company that funded ECO installation
- • Verify Trustmark registration on certificate
Step 5: Submit Formal Claims (Week 5)
- • Write formal complaint letter citing: installation date, defects, NAO Report, surveyor findings
- • Attach: survey report, quotes, photos, installation paperwork
- • Send via recorded delivery to: installer, CIGA (if applicable), energy company, Trustmark
- • Give 28 days for response
Step 6: Escalate If Rejected (Week 9+)
- • Energy Ombudsman (if energy company rejects claim)
- • Trading Standards (if installer still trading but refusing)
- • Small Claims Court (claims up to £10,000)
- • Solicitor consultation (no-win-no-fee if claim over £10,000)
Typical Compensation Amounts (2024)
| Insulation Type | Removal Cost | Repairs | Total Typical |
|---|---|---|---|
| Spray Foam | £3,000-£12,000 | £2,000-£8,000 | £5,000-£20,000 |
| External Wall (EWI) | £8,000-£25,000 | £3,000-£10,000 | £11,000-£35,000 |
| Cavity Wall | £1,500-£4,000 | £1,000-£5,000 | £2,500-£9,000 |
| Internal Wall (IWI) | £3,000-£12,000 | £2,000-£6,000 | £5,000-£18,000 |
*Costs vary by property size, extent of damage, and region. These are typical successful claim amounts.
What the NAO Report Means for Your Claim
The November 2024 National Audit Office Report is a game-changer for compensation claims:
- Official confirmation of widespread failure - 98% failure rate across 23,000 inspected homes
- Systemic issues identified - Not isolated incidents but systematic scheme failures
- Trustmark inadequacy confirmed - Government oversight "not fit for purpose"
- Energy company responsibility highlighted - Companies prioritized volume over quality
- Government acknowledgment - Ministers admit failures, strengthening legal positions
What this means: Courts and ombudsmen can no longer dismiss claims as "one-off" problems. The NAO Report provides authoritative evidence that government schemes were fundamentally flawed. Always cite the report in your claims.
Government Redress Scheme (Coming Soon?)
Following the NAO Report, there is political pressure for a government-funded redress scheme:
- MPs are calling for compensation fund for affected homeowners
- Similar to cladding remediation schemes post-Grenfell
- Could cover removal costs where installers have ceased trading
- Likely means-tested or prioritized for most severe cases
Tips for Successful Claims
Do's and Don'ts
DO
- ✓ Keep all paperwork organized and in one place
- ✓ Take date-stamped photos regularly
- ✓ Get professional surveys from RICS members
- ✓ Chase responses - don't wait passively
- ✓ Cite the NAO Report in all correspondence
- ✓ Consider joining group legal actions
- ✓ Keep calm and factual in all communications
DON'T
- ✗ Accept first offer without negotiation
- ✗ Sign settlement agreements hastily
- ✗ Pay for removal before exhausting claims
- ✗ Throw away any installation paperwork
- ✗ Accept liability for problems you didn't cause
- ✗ Miss deadlines for responses
- ✗ Make threats or use aggressive language
Get Expert Help
Navigating compensation claims can be complex. Consider getting help from:
- Consumer rights solicitors - Many offer free initial consultations or no-win-no-fee
- Citizens Advice - Free guidance on consumer rights and complaints procedures
- Surveyors - Can provide expert witness reports for legal claims
- Specialist contractors - Can support claims with technical evidence and reports
Ready to Start Your Claim?
Get professional support to maximize your compensation. We can connect you with surveyors, contractors, and legal advisors who specialize in government scheme failures.