Great British Insulation Scheme (GBIS) Problems: What Homeowners Need to Know
The Great British Insulation Scheme launched in 2023 as the government's flagship energy efficiency program. Within months, serious installation failures emerged. This comprehensive guide explains the problems, your rights, and how to get help.
What Is the Great British Insulation Scheme (GBIS)?
The Great British Insulation Scheme (GBIS) was launched in April 2023 as a replacement for the Green Homes Grant scheme. It aims to improve the energy efficiency of homes in Great Britain by installing insulation measures. The scheme runs until March 2026 with a budget of £1 billion.
GBIS Key Facts
GBIS vs ECO4: What's the Difference?
Many homeowners confuse GBIS with ECO4 (Energy Company Obligation 4). While both are government-backed insulation schemes running simultaneously, they have different eligibility criteria and focus areas.
| Feature | GBIS | ECO4 |
|---|---|---|
| Primary Focus | Insulation measures only | Full retrofit including heating |
| Eligibility | Council Tax bands A-D, low EPC ratings | Benefits recipients, low income |
| Income Requirements | Not means-tested in general route | Strict income/benefit requirements |
| Available Measures | Cavity wall, loft, room-in-roof insulation | All insulation types + heating systems |
| External Wall Insulation | Not typically covered | Available for eligible properties |
| Inspection Rate | 4.7% (NAO 2024) | 4.7% (NAO 2024) |
The Major Problems with GBIS
1. Catastrophically Low Inspection Rates
The National Audit Office's November 2024 report revealed that only 4.7% of GBIS installations receive any form of inspection. This means 95.3% of work is never checked for compliance, quality, or safety.
2. Unsuitable Insulation Types for Property Characteristics
GBIS prioritizes "easy wins" - cavity wall and loft insulation - regardless of whether properties are suitable. The scheme's volume-based targets incentivize quick installations over proper assessments.
Properties at Risk
- Pre-1920s properties with solid walls
- Homes with existing damp issues
- Properties with poor ventilation
- Coastal or exposed locations
- Listed or conservation area buildings
What Should Happen
- Comprehensive property survey before work
- Moisture and ventilation assessment
- Building fabric compatibility check
- Written explanation if insulation unsuitable
- Alternative measures recommended
3. Contractor Quality and Oversight Issues
GBIS relies on the same broken Trustmark certification system as ECO4. Contractors can self-certify work, and the "phoenix company" pattern allows failed installers to simply close and re-open under new names.
4. Inadequate Consumer Protection
Unlike traditional building work, GBIS installations often bypass normal consumer protections. Homeowners report being pressured to sign contracts quickly, receiving incomplete documentation, and struggling to get warranties honored.
Common Consumer Protection Failures
No Cooling-Off Period
Work often starts immediately without the standard 14-day cooling-off period required for doorstep sales.
Unclear Warranty Terms
Insurance-backed guarantees are promised but documentation is incomplete or never provided.
Liability Gaps
When contractors fold, homeowners discover the warranty provider denies claims due to technical exclusions.
No Independent Advocacy
Complaint processes require homeowners to navigate complex bureaucracy alone against well-resourced companies.
Real-World GBIS Failure Examples
Cavity Wall Insulation Causing Penetrating Damp
GBIS-funded cavity wall insulation is particularly problematic in properties with cavity widths below 50mm, partial-fill cavities, or exposure to driving rain. The scheme's assessment process rarely identifies these risk factors.
Typical Timeline of Failure:
Month 0: GBIS cavity wall insulation installed in 1 day
Month 3-6: First signs of damp patches on internal walls
Month 12: Visible mould growth, musty smell, wallpaper peeling
Month 18+: Structural damage to plaster, timber frame deterioration
Loft Insulation Causing Condensation
Over-insulation without adequate ventilation is a common GBIS issue. Contractors install the maximum depth of loft insulation (270mm+) without checking or upgrading roof ventilation, leading to condensation in roof spaces.
What to Do If Your GBIS Installation Has Failed
Step 1: Document Everything Immediately
- Take photos/videos of all damp, mould, or damage with timestamps
- Find all paperwork: contracts, certificates, warranties, assessment reports
- Keep a diary noting when problems appeared and how they've worsened
- Track costs: dehumidifiers, decorating, heating bills, health impacts
Step 2: Contact the Installer in Writing
Send a formal written complaint to the contractor who did the work. Use recorded delivery and keep copies. Give them 14 days to respond with a plan to rectify the problems.
Step 3: Report to Trustmark and the Energy Supplier
File complaints with both Trustmark (the certification scheme) and the energy supplier who funded the work through GBIS. Both have obligations to investigate and resolve issues.
Step 4: Get an Independent Survey
Hire a qualified building surveyor or damp specialist (not connected to the scheme) to assess the problems and confirm causation. This report is crucial for any compensation claim.
Step 5: Consider Legal Action
If the contractor, Trustmark, or energy supplier won't resolve the issue, you may need legal representation. Many solicitors offer no-win-no-fee arrangements for insulation failure cases.
Your Legal Rights Under GBIS
Despite being "free" government schemes, you have the same consumer rights as paying customers:
Consumer Rights Act 2015
Work must be performed with reasonable care and skill. Materials must be of satisfactory quality. You can claim for poor workmanship.
Building Regulations 2010
All insulation work must comply with Part C (Site preparation and resistance to contaminants and moisture) and Part L (Conservation of fuel and power).
Misrepresentation Act 1967
If contractors made false claims about suitability or benefits, you may have grounds to rescind the contract and claim damages.
GBIS Compensation: What You Can Claim
Successful GBIS compensation claims typically include:
Direct Costs
- Insulation removal£2,000-£5,000
- Damp remediation£1,500-£8,000
- Replastering/repairs£3,000-£12,000
- Redecoration£1,000-£4,000
- Survey/expert fees£500-£1,500
Indirect Costs
- Increased heating bills£400-£1,200/year
- Dehumidifier costs£200-£600/year
- Temporary accommodation£2,000-£10,000
- Property value loss£10,000-£50,000
- Distress/inconvenience£1,000-£5,000
How to Avoid GBIS Problems
If You're Considering GBIS
Essential Checks Before Accepting GBIS Work
- 1.Demand a full building survey - not just a quick visual assessment. This should check cavity width, wall construction, moisture levels, and ventilation.
- 2.Get a written guarantee that the insulation type is suitable for your specific property type and location.
- 3.Verify contractor credentials independently - check Companies House, reviews, and how long they've been trading.
- 4.Obtain full warranty documentation before work starts, including the insurance-backed guarantee certificate.
- 5.Request references from recent local installations and follow up to check for any emerging problems.
- 6.Never accept same-day installations - insist on a minimum 14-day cooling-off period to review all documentation.
Red Flags to Watch For
The Future of GBIS
Following the NAO's damning November 2024 report, the government faces pressure to either fundamentally reform or suspend GBIS. Key recommendations include:
- Increasing inspection rates from 4.7% to at least 20%
- Mandatory independent pre-installation surveys
- Ending contractor self-certification
- Creating a compensation fund for failed installations
- Proper enforcement against repeat-offending contractors
- Stronger consumer protections and clearer warranties
However, as of November 2024, GBIS continues to operate under the same flawed framework. Homeowners considering scheme-funded insulation should proceed with extreme caution.
Get Expert Help with GBIS Problems
If you're experiencing issues with GBIS-funded insulation, we can connect you with specialists who understand these specific schemes and can help you navigate the complaint and compensation process.
Get Free AssessmentFrequently Asked Questions
Is GBIS the same as the Green Homes Grant?
No. The Green Homes Grant ended in 2021. GBIS replaced it in April 2023 with a different structure but similar aims. GBIS runs until March 2026.
Can I refuse GBIS work if I'm eligible?
Yes, absolutely. Eligibility doesn't mean you must accept the work. If you have concerns about suitability, you should decline and seek independent advice.
Who pays for GBIS remediation if it fails?
Legally, the contractor is liable for defective work. However, many have folded. You may need to claim against Trustmark, the warranty provider, or the energy supplier. We can help you identify the responsible parties.
How long do GBIS warranties last?
Standard GBIS installation warranties are 2 years for workmanship and 25 years for insurance-backed guarantees. However, warranty providers often dispute claims based on technical exclusions.