MPs slam energy scheme failures: what it means for your costs
A committee chair has criticised government energy installation schemes. We explain what that means for insulation, heat pump and damp costs.
Homeowners should not wait on government schemes to fix damp or cold homes, and should check any installer carefully before signing. The chair of the Public Accounts Committee has criticised government energy installation schemes in strong terms. The grants and tax relief we list below are still available.
What was reported
According to Inside Housing, the chair of the Public Accounts Committee (PAC) said "shocking failures" by government have left some of Britain's poorest families living in damp, mouldy and unsafe homes. The MP described the problems with the energy installation schemes as among the worst failures they had come across.
The article text available to us was cut short, so we are not going to guess at figures, scheme names or findings beyond that. Read the full report at the link above for the detail.
Why this matters for your budget
Damp, mould and unsafe work are cost problems as well as health ones. A poorly fitted measure can leave a home worse off. Putting it right later usually costs more than doing it properly once.
We build our estimates from labour hours × local rates plus materials, then check them against market prices and real quotes. That approach shows where the money goes in the projects most often linked to these schemes.
What the main projects cost now
These live figures include 20% VAT unless stated.
| Project | Typical cost | Usual range |
|---|---|---|
| External wall insulation (150 m²) | £26,000 | £20,300 – £33,800 |
| Air source heat pump (8 kW) | £12,900 | £10,000 – £16,700 |
| Solar panels (6 kWp) | £12,500 | £9,800 – £16,300 |
| Damp proofing (20 m) | £2,500 | £1,950 – £3,250 |
See our full guides for [wall insulation](External wall insulation), [heat pumps](Air source heat pump), [solar panels](Solar panels) and [damp proofing](Damp proofing).
Wall insulation prices vary with the material.
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| EPS polystyrene | £26,000 | £20,300 – £33,800 | 30-50 years |
| PIR | £26,100 | £20,300 – £33,900 | 30-50 years |
| Mineral / rock wool (non-combustible) | £30,500 | £23,800 – £39,700 | 40-60 years |
| Phenolic (thinner for the same performance) | £31,300 | £24,400 – £40,700 | 30-50 years |
Support that still stands
Our fact sheet confirms the following:
- Boiler Upgrade Scheme (England and Wales): £7,500 off an air source or ground source heat pump. The installer must be MCS certified.
- Scotland: a Home Energy Scotland grant of up to £7,500, plus an optional £7,500 interest-free loan.
- 0% VAT on installing energy-saving materials, including heat pumps, insulation, solar panels and batteries, until 31 March 2027. That is a saving of one-sixth on a VAT-inclusive price.
- Warm Homes Plan (published January 2026): £15bn to 2030, including grants for low-income households and low- or zero-interest loans being phased in.
Our figures include 20% VAT except where 0% applies, so check how a quote treats VAT.
How to protect yourself
You cannot control how a scheme is run, but you can control who you hire.
- Check certification. For a heat pump grant, the installer must be MCS certified. Ask for the certificate number.
- Ask who does the electrics. In England and Wales, notifiable electrical work must be done by a registered electrician (Part P) or notified to building control.
- Mind the building regulations. Renovating more than 50% of a wall, roof or floor can trigger Part L standards for the whole element, as far as is technically, functionally and economically feasible. Ask your installer how they will comply.
- Deal with damp first. Insulating over an unresolved damp problem is a recipe for trouble. A surveyor or damp specialist should look at the cause before any measure goes on.
- Get several itemised quotes. Compare materials, thickness, labour and VAT line by line.
Use our "is my quote fair" tool to compare a quote against our live cost model. If a price is far above or below the range, ask why before you commit.
What to do now
If you are eligible for a grant, apply through the official route and confirm the installer's accreditation first. If you are paying privately, the 0% VAT window runs to 31 March 2027, so book surveys early enough to finish work in time. We will update these figures as the cost model changes.