The government is introducing a new initiative next month designed to offer greater protection to homeowners against unscrupulous traders carrying out renovations. The scheme includes a database of trusted tradespeople and a payment system intended to provide enhanced safeguards.
Traders who sign up for the program will be required to meet certain standards concerning customer service, transparency in their dealings, and dispute resolution processes. Prime Minister Andy Burnham stated that dishonest tradespeople often leave families facing prolonged stress and incomplete projects.
Citizens Advice has identified home renovations as a significant source of consumer complaints. According to government figures, over a quarter of individuals who undertook home improvements in the last 18 months encountered issues, including builders disappearing after receiving upfront payments. A survey cited by the government suggested that consumers lost more than £10 billion in 2024 on home and garden maintenance services due to losses, inflated costs, or unfair practices.
Under the new system, customers' funds will be held in an account and released incrementally as specific project milestones are achieved. This aims to prevent situations where work is left unfinished after payment.
However, reactions to the proposed changes have been mixed. The National Federation of Builders (NFB) expressed skepticism, with director of policy Adas Rico Wojtulewicz-Richmond stating that existing schemes are already in place and questioning the new initiative's effectiveness against determined rogue operators. The NFB suggested that a more beneficial approach would involve a "passport" for each project, documenting all work performed to enhance transparency and industry standards.
Conversely, Business Secretary Jonathan Reynolds asserted that the government is taking action to safeguard consumers, support reputable traders, and boost consumer confidence. He noted that while home improvements can be a source of stress, the new measures are intended to provide security.
Opposition parties have raised concerns about the potential impact on legitimate businesses. Shadow business secretary Andrew Griffith suggested the initiative could result in increased administrative burdens for compliant firms and argued for stronger law enforcement and tougher penalties for fraudulent traders. Liberal Democrat business spokesperson Sarah Olney called the announcement "half-baked" and contended that a voluntary code would not deter rogue operators, who would continue to exploit consumers outside of such schemes.