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How will the new protection package work?

In the UK, the government said it will introduce a new system next month to highlight trusted tradespeople, following rising consumer losses from home renovation scams. The measure is designed to give homeowners stronger financial protection against firms that take upfront payments and then disappear or leave jobs unfinished.

Tradespeople joining the scheme will have to show they meet set standards for customer service, transparency and dispute resolution. Under the new payment model, customers’ money will not be transferred directly to the contractor; instead, funds will be released in instalments as specific stages of the project are completed.

The government argues the approach will also protect honest businesses from unfair competition and allow consumers to spend with greater confidence. Business Minister Jonathan Reynolds said the move aims both to protect consumers and to support reputable tradespeople.

The numbers show the scale of the losses

According to Citizens Advice, home renovation work remains one of the biggest sources of consumer complaints. Government information shows that more than a quarter of people who had home improvement work done in the past 18 months experienced problems.

Based on a survey for the Competition and Markets Authority (the UK's competition watchdog), consumers lost more than £10 billion in 2024 due to overcharging and unfair practices in home and garden maintenance services.

  • Contractors disappearing after taking an upfront payment
  • Initial low quotes being inflated later with hidden charges
  • Work delivered incomplete, defective or at unfair prices

Pushback from industry and the opposition

The National Federation of Builders said existing programmes already help consumers find trusted tradespeople, and argued the new model would not automatically shut fraudulent operators out of the system. The federation said a “project passport” approach, which records work carried out on each renovation job, would be more effective.

The opposition Conservatives said the rules could create extra paperwork for firms that already comply with regulations. The Liberal Democrats said a voluntary scheme would not be enough to bring rogue tradespeople working off the books into the system.

Broader oversight plan also on the agenda

The Chartered Trading Standards Institute welcomed the new system as an initial step in the right direction, but called for compulsory licensing for people working in home maintenance and repair. The body warned that government-backed programmes in particular can create fraud risks, noting that since 2022, major defects have been found in more than 30,000 homes linked to some publicly funded insulation jobs.

The government is also planning to bring private bailiffs in England and Wales under regulation. Under the proposal, people facing debt collection would have access to an independent complaints mechanism, while bailiffs would be subject to professional standards. Officials said coordination between regulators and bodies such as Trading Standards would also be strengthened.

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