Peeling plaster and mould on a wall inside a UK home, showing the damage caused by faulty government insulation

Tories spent millions wrecking people’s homes – and your energy bill funded it

Last Updated: October 14, 2025By

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Tens of thousands of families have been left to live in damp, mould-ridden homes – thanks to government-backed insulation schemes that were meant to save energy but ended up destroying lives.

And here’s the twist: you paid for it.

The National Audit Office has confirmed what campaigners and this site have been saying for years: the schemes were botched on a vast scale, cost billions, and still haven’t been fixed.

Theys weren’t funded from general taxation. They were financed through levies on your energy bills – at a time when prices were already sky-high because of the Ukraine-Russia war.

While the Conservative government was telling us all to tighten our belts and “use less energy”, it was secretly siphoning off part of those inflated bills to fund private contractors who went on to destroy people’s houses.

The Conservatives spent your money to wreck people’s homes – and all Labour has done is confirm the damage.


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A scandal funded with public money

According to the NAO, almost every home fitted with external wall insulation under the previous government’s schemes now needs repair – 98 per cent of those installations are faulty.

Nearly one-third of homes with internal insulation also need fixing.

More than 1,000 homes have been left with faults so dangerous that they pose an immediate health and safety risk – including live wiring, blocked ventilation and severe mould.

All this work was funded with billions raised from consumers’ energy bills, under the Energy Company Obligation (ECO4) and the Great British Insulation Scheme (GBIS).

The Tories said the schemes would make homes warmer and cheaper to run. In reality, they handed billions to private companies and left people’s houses colder, wetter and unsafe.

Money for nothing

The NAO says there were “clear failures in design” that led to “poor-quality installations as well as suspected fraud”.

Energy firms were allowed to pay contractors without any proper quality checks. There was no system to ensure the work had been done correctly – or even done at all.

Ofgem estimates that installers falsified claims for up to 16,500 homes, potentially stealing between £56 million and £165 million from energy suppliers and, by extension, from the public. This is money that came directly from your energy bills.

So, while you were struggling to afford heating, part of your payments was being siphoned off to fund shoddy, fraudulent work that made thousands of homes uninhabitable – including, maybe, your own.

The Conservatives didn’t just waste money. They took your money, gave it away for nothing – and destroyed people’s homes in the process.

Oversight in name only

The NAO condemned TrustMark, the government-backed quality assurance scheme, for “weak oversight and insufficient auditing”.

That failure allowed installers to “game the system” for profit.

Ofgem, the industry regulator, also failed to act.

Instead of protecting consumers, the regulators became enablers – waving through shoddy work, forged paperwork and dangerous installations.

This wasn’t a one-off blunder. It was a system built to fail.

The human cost

The BBC highlighted the story of Mohammed Mahedi in Luton, who had external wall insulation fitted two years ago and now lives with damp, mould and breathing problems.

He told reporters:

“Some mornings I wake up breathing really, really heavily. I feel it in my neck. I feel it in my lungs. We got a scheme done that was meant to be helping us, but it’s made everything worse.”

His case is not unusual. Many others have seen their homes ruined and their health damaged.

And despite all the promises, no repairs have yet been carried out.

The government says the work will be fixed “at no cost to the consumer”.

But that means nothing while families continue to live in homes that make them ill.

Insulate Britain was right

Four years ago, campaigners from Insulate Britain were being dragged off roads and branded traitors for demanding proper home insulation.

They called for high-quality retrofitting of every home – not the cut-price bodge jobs that have now been exposed.

The Conservatives refused to listen.

They criminalised the campaigners and pressed ahead with schemes that cut corners to save money.

If the government had carried out Insulate Britain’s plan – properly – this scandal might never have happened.

Now even the National Audit Office has confirmed what those protesters warned all along: cheap, rushed insulation destroys homes and endangers lives.

From Tory destruction to Labour denial

Energy Minister Martin McCluskey says Labour is “taking action” and homes will be repaired at no cost to consumers.

But no work has even been started.

So far, Labour has achieved nothing more than to confirm the scale of the damage the Conservatives caused.

The Tories ruined people’s homes and wasted millions.

Labour has merely acknowledged it.

The families trapped in damp, crumbling houses deserve more than sympathy – they deserve justice.

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