Thousands of homes fitted with insulation under a flagship government scheme now need major remedial work, or risk damp and mould, the public spending watchdog has warned.

A damning report by the National Audit Office (NAO) said “clear failures” in the Energy Company Obligation (ECO) scheme to tackle fuel poverty and pollution had led to low quality installations and even potential fraud.

It blamed incompetent subcontractors and weak monitoring and government oversight for the issues, which in extreme cases could cause fires.

Fuel poverty campaigners warned the system had “let cowboys through the front door”, saying it must be fixed to bring down energy bills and keep people warm.

Almost all homes – some 98%, affecting 22,000 to 23,000 properties – fitted with external wall insulation under the ECO are affected, the NAO said.

A further 29% of homes with internal wall insulation – around 9,000 to 13,000 dwellings – also face major issues that need fixing.

A small percentage of homes – 6% with external insulation and 2% with internal – put people in immediate danger, such as poor ventilation that could cause carbon monoxide poisoning, and electrical safety issues that could start fires.

ECO is a scheme that obliges energy companies to pay for energy efficiency measures in vulnerable households out of consumer bills.

Gareth Davies, head of the NAO, said ECO is “important to help reduce fuel poverty and meet the government’s ambitions for energy efficiency”.

But “clear failures in the design and set-up” had led to “poor-quality installations, as well as suspected fraud”, he added.

‘Gaming the system’

The report says the reason things had gone so badly wrong could be down to work being subcontracted to individuals and firms who are not competent or certified, uncertainty over standards, and businesses “cutting corners” or “gaming the system”.

The energy regulator Ofgem last year estimated businesses had falsified claims for ECO installations in between 5,600 and 16,500 homes.

That means they could have claimed between £56m and £165m from energy suppliers – ultimately paid for by bill-payers.

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Martin McCluskey, the government minister for energy consumers, criticised the “unacceptable, systemic failings” that had affected thousands of families.

He added: “We are fixing the broken system the last government left by introducing comprehensive reforms to make this process clear and straightforward, and in the rare cases where things go wrong, there will be clear lines of accountability, so consumers are guaranteed to get any problems fixed quickly.”

The government urged households to take up the free audit that will be offered in a forthcoming letter, and said installers would be forced to remedy the issues free of charge.

However, insulation has the potential to vastly improve homes, analysts pointed out.

Jess Ralston from energy think tank ECIU said: “The majority of households that have benefitted from insulation schemes have lower bills and warmer, healthy homes, particularly during the early years of the gas crisis when the UK’s poor quality housing stock was one of the reasons we were so badly hit compared to other European countries.”

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “Insulation and ventilation, when done properly, are among the safest and most effective ways to bring down energy bills and keep people warm.”

But the report had revealed a “system that has let cowboys through the front door, leaving thousands of victims living in misery and undermining public trust”.

Sue Davies, Which? head of consumer protection policy, called it “a damning indictment of a failed scheme, where poor oversight has allowed rogue traders to cause huge damage to people’s homes and lives”.

She said the government must take swift action to rectify the damage, as well as ensuring “there is no repeat of this scandal by putting in place robust consumer protections and effective oversight”.

A woman accused of stalking the parents of Madeleine McCann allegedly left voicemails asking the mother of the missing girl for a DNA test, a court heard.

Jurors heard voicemails left by Julia Wandelt, 24, from Lubin, Poland, in which she was audibly upset.

She allegedly left the messages last year, over a period of months, and at one point asked: “What if I’m her?”

Co-defendant Karen Spragg, 61, began crying today at Leicester Crown Court and had to leave the dock when the voicemails were played.

Wandelt, whose head was down while jurors were listening, was heard saying: “I know you probably think Madeleine‘s dead. Well she is not. I really believe I’m her.

“Help me. Don’t think Madeleine is dead. This is a chance. Please, I beg you. The police don’t want to help me, they don’t want to help Madeleine. It’s all corrupt.

“I promise you that I will prove who I am because I know you love Madeleine.”

In another message, she said: “You probably believe Madeleine is not alive anymore.

“What if I am her? What if there’s a small chance that I’m her?”

Jurors also heard that, one night, Wandelt sent a message to Mrs McCann at 1am, saying: “I don’t understand why you don’t want to do a DNA test.”

Prosecutors allege that Wandelt, a Polish national, falsely claimed she was Madeleine while stalking parents Kate and Gerry McCann by sending emails, making calls and turning up at their address between June 2022 and February this year.

The court previously heard that Wandelt called and messaged Mrs McCann more than 60 times in a single day in April last year. This included alleged memories of Madeleine’s abduction.

Madeleine went missing during a family holiday to Praia da Luz in Portugal, in May 2007.

Wandelt and Spragg, of Caerau Court Road in Caerau, Cardiff, both deny one count of stalking.

The trial continues.

Tommy Robinson refused to hand over his phone pin when police stopped his Bentley on the way to Benidorm, a court has heard.

He allegedly told officers “Not a chance, bruv” and said he was a journalist when they pulled him aside at the Channel Tunnel at Folkestone in July 2024.

Robinson, real name Stephen Yaxley-Lennon, is accused of “frustrating” counter-terrorism powers by refusing to give access to the phone.

He denies the charge.

The right-wing political activist was flanked by security guards as he arrived at Westminster Magistrates Court for the opening of the trial on Monday.

The 42-year-old faces three months in prison and/or a £2,500 fine if found guilty.

Robinson had £13,000 and 1,900 euros on him when he was stopped and told police he was going to Benidorm in Spain for a few days, said prosecutor Jo Morris.

He allegedly refused to give the pin as he claimed the phone had sensitive “journalist material” on it.

He’s said to have told police: “It’s my work, I’m a journalist,” claiming it contained information about “vulnerable girls”.

The court heard Robinson was stopped in his silver Bentley SUV because he gave “short, vague replies” about what he was doing and “made no eye contact”.

PC Mitchell Thorogood told the court it was also “unusual” he bought tickets on the day rather than in advance and was in an expensive car not registered in his name.

When police took Robinson into an interview room and demanded his phone, he allegedly told them: “Not a chance bruv… you look like a c*** so you ain’t having it.”

Officers said they recognised Robinson when they stopped him and his lawyer, Alisdair Williamson KC, suggested the stop may have been “discriminatory” against his political beliefs.

Police can stop anyone at a UK port and hold them for six hours if they suspect they may be involved in planning or committing acts of terrorism.

They are legally obliged to answer questions and must give access to their electronic devices or face a criminal charge.

In a video on X before the hearing, Robinson said Elon Musk had “picked up the legal bill” for “this absolute state persecution”.

The case comes a month after Robinson led a huge rally in central London under the banner ‘Unite the Kingdom’.

The trial continues.