Government launches new scheme to protect homeowners from rogue builders

The government has announced a new initiative designed to shield homeowners from unscrupulous tradespeople, introducing a database of verified professionals and a secure payment system. The scheme, which is set to launch next month, aims to provide greater safeguards for individuals undertaking home renovations by ensuring that participating traders meet specific standards of customer service, transparency, and dispute resolution. Prime Minister Andy Burnham stated that rogue builders cause significant stress for families and leave work unfinished, arguing that the new measures will help put such operators out of business while protecting the reputation of decent, hardworking traders.

Under the proposed framework, customers’ funds will be held in a dedicated account and released in instalments only after specific project milestones are completed. This mechanism is intended to prevent the common issue of builders disappearing after receiving upfront payments. The government cited a survey conducted for the Competition and Markets Authority, which indicated that customers lost more than £10 billion in 2024 due to losses, overpriced costs, or unfair practices in home and garden maintenance services. Additionally, the department noted that more than a quarter of people who carried out home improvements in the previous 18 months had experienced problems. Citizens Advice has previously identified home renovations as one of its largest sources of consumer complaints, and BBC News has reported on instances of bait-and-switch tactics used by locksmiths, where initial cheap quotes were followed by hidden charges and unnecessary work.

Reaction to the announcement has been mixed. Adas Rico Wojtulewicz-Richmond, director of policy at the National Federation of Builders, expressed doubt that the scheme would stop bad actors from ripping people off. He suggested that a more effective approach would be to implement a project passport system that records all work done, thereby allowing consumers to identify companies performing poorly and raising industry standards. Business Secretary Jonathan Reynolds defended the move, stating that the government is taking action to protect consumers and support reputable traders, allowing people to spend their money with greater confidence and security.

Opposition parties have criticised the plan. Shadow business secretary Andrew Griffith argued that the initiative risks adding unnecessary paperwork for businesses that already operate legitimately. He contended that the government would be better served by beefing up law enforcement and imposing tougher sentences for fraudulent traders, asserting that rule-breakers will continue their activities regardless of digital barriers. Liberal Democrat business spokesperson Sarah Olney described the announcement as half-baked, arguing that a voluntary code would fail because rogue operators would simply refuse to sign up and continue exploiting families in the shadows.

Alongside measures targeting rogue tradespeople, the government has outlined plans to regulate private bailiffs in England and Wales. These changes aim to protect people in debt from intimidating behaviour, unfair treatment, or excessive repayment arrangements. Individuals facing enforcement action will gain access to an independent complaints process, and private bailiffs will be required to adhere to professional standards. Sarah Sackman, minister for courts and legal services, acknowledged the important role bailiffs play while emphasising that such responsibility must come with high standards. The government also intends to review how organisations like Trading Standards collaborate with regulators and enforcement bodies to ensure consumers are not passed from pillar to post. A Freedom of Information request by Which? last year revealed that understaffing in trading standards teams had contributed to an increase in scams and the sale of dangerous products.