The implication of the National Audit Office’s findings in relation to external wall insulation schemes ahead of Awaabs Law implementation

The implication of the National Audit Office’s findings in relation to external wall insulation schemes ahead of Awaabs Law implementation

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The National Audit Office (“NAO”) has recently published a report detailing its findings of “widespread quality failings” in relation to two government back energy efficiency programmes. (Weak controls and oversight blamed for faulty home installations under energy efficiency scheme - NAO press release) The programmes were designed to improve energy efficiency through the installation of external and internal wall insulation. However, the NAO has now confirmed that 98% of the properties inspected were found to be defective and stated that the insulation may have contributed to identified hazards, including damp and mould. In some instances, suspected fraud across the Energy Company Obligation Scheme was also identified. 

Coupled with Awaab’s Law coming into force on 27 October 2025, the NAO’s findings may have significant implications for social housing providers. Awaab’s Law introduces strict statutory timeframes for responding to emergency and significant hazards including damp and mould. Breach of the legislation will give tenants a direct cause of action against their landlord, with remedies including injunctions and awards of financial compensation. Complaints may also be submitted via the Housing Ombudsman who may also impose sanctions on the landlord.

It is essential therefore that social housing providers audit their housing stock to assess whether any properties that have undergone retrofit works require any remedial work to address identified failings. 

Social housing providers should also ensure that they have systems in place to respond to any reports that fall within the remit of Awaab’s Law within prescribed timeframes, including systems for recording reported incidents, escalating to the appropriate departments, investigating and identifying hazards, and remedying the same, ensuring that the issues do not reoccur.  

Working closely with their award-winning Product and Innovation team, Weightmans’ social housing experts have developed an Awaab’s Law compliance tool to support social housing providers navigate and comply with Awaab’s Law. From initial notification to final completion of works, the tool highlights the legal requirements, reminds of upcoming deadlines and produces compliant reports which may be shared with tenants where necessary.  

If you work within the social housing sector and would like a demonstration of the tool to better understand how it can support your organisation, please book a consultation.

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Written by:

Rhiannon Moody

Associate

Rhiannon has extensive experience dealing with contentious housing disrepair matters, acting for registered providers and housing associations.

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