MPs back calls for action to support victims of faulty insulation scheme

The installers claimed the scheme was backed by Government funding.

The constituents were among hundreds of clients who instructed Sheffield firm SSB Law to run cavity wall insulation claims on their behalf, but the firm went into administration in early 2024 and many clients were later pursued by lawyers representing the insulation firms’ insurance companies for thousands of pounds in incurred costs.

In a separate development last month, the Commons Public Accounts Committee claimed that the Government’s botched insulation scheme had left affected households exposed to unaffordable repair bills.

The Energy Company Obligation (ECO) programme, which aimed to improve energy efficiency and slash bills, instead left more than 30,000 homes with faulty insulation. In some cases, this caused structural issues, damp, mould and health-and-safety risks, the MPs said.

Sir Geoffrey Clifton-Brown, PAC chairman, called ECO’s systemic failure “the most catastrophic fiasco” that he had seen in his 12 years of serving on the committee.

Ms Uppal said: “This PAC report confirms the scale of failure with faulty insulation under the Eco 4 Scheme.

"As Ministers have said we have inherited a broken system from the previous government and things are being put in place with an audit and assurances that no households should be asked to pay any money to put things right. Although I note the PAC report says more assurance is needed over this.

“The new warm homes plan has also reflected these concerns with the decision to end the Eco 4 scheme and instead put more investment through local authorities and the establishment of the New Warm Homes Agency. I think these will all be welcomed.

“The PAC report notes the likely role of fraud in the poor quality installations, and that the Department should refer the issue to the Serious Fraud Office to investigate the extent of fraud across ECO and bring criminals to justice.

"I do believe this is something the Government should consider given the extent of the problems residents have faced not only with faulty cavity wall insulation but adverse legal costs and the failures of the SRA (Solicitors Regulation Authority).”

Ms Dearden added: “I know from speaking to residents just how much stress and worry this ordeal has caused. I’ve heard first-hand the impact the faulty cavity wall installations and the subsequent SSB Law situation have had on families across our community, and I am under no illusion about the toll it has taken.

"It’s right that the Public Accounts Committee has investigated this issue, and I’m pleased that steps are now being taken to strengthen protections and improve oversight, so no one has to go through this again.”

Naz Shah, Labour MP for Bradford West, said the findings of the PAC report are “deeply shocking”.

She added: “I welcome the report’s recommendation that this matter be referred to the Serious Fraud Office to investigate the contractors involved..those affected deserve urgent action, accountability, and proper support to put right what has gone wrong.”

Minister for Energy Consumers Martin McCluskey said: “We inherited a broken system from the previous government. It was not fit for purpose and had multiple points of failure. We are cleaning up this mess.

"Every household with external wall insulation installed under these two schemes are being audited, at no cost to the consumer. And we have been clear that no household should be asked to pay any money to put things right.

"Of all non-compliant properties found to date, over 50 per cent have been remediated. We will establish a new Warm Homes Agency, bringing in a single system for retrofit work to provide stronger, formal government oversight and driving up quality.”

Ms Uppal said that in one constituent’s case, the claim against him related to SSB law has now been dropped, although “this does not undo the years of failure and neglect”.

In a statement issued in December, The Solicitors Regulation Authority said it took action against four solicitors at SSB “by placing conditions on the way they can work last year in order to protect the public”. “These conditions were imposed on an interim basis, pending the final outcome of our investigation."

At the end of 2023, the Solicitors Regulation Authority received reports that SSB's clients were unexpectedly being pursued to pay adverse legal costs in relation to their discontinued cavity wall insulation litigation claims.

SSB had arranged after-the-event insurance for clients to cover the other side's costs in relation to their insulation claims, the SRA said.

This is a type of legal expenses insurance policy to provide cover for legal costs and expenses incurred in litigation in the event a claim is unsuccessful. These policies are commonly used, including in 'no win, no fee' cases.

However, in some cases, SSB’s after-the-event insurance providers declined to meet the costs as expected under the insurance policy, and so the defendants pursued SSB's clients for the costs of rebutting the claims against them.

In other cases, it appears that the after-the-event insurance insurance was either not in place or it was insufficient to meet client needs, the SRA said.

The SRA said in a statement issued in late 2025: “Our investigation covered a range of key areas. We reviewed how the firm obtained its work, and how the claims were handled by staff, including whether clients were properly advised and whether their instructions were followed. We also looked closely at the ATE insurance obtained, and whether the solicitors complied with their obligations to keep the ATE insurers updated regarding the merits and progress of claims.

“We also looked back to previous complaints made about SSB and this issue and assessed their relevance to our enquiries.

“We have now completed our investigation, having reviewed all the relevant evidence, and are deciding on next steps. We have already taken action against some individuals. And we anticipate making further decisions soon.”