Homeowners will receive stronger protections against unscrupulous builders through a newly announced database of vetted traders and a milestone-based payment system, the government has confirmed. Prime Minister Andy Burnham stated that dishonest tradespeople inflict prolonged hardship on families and undermine the reputation of legitimate operators in the sector.
Traders enrolling in the scheme, which launches next month, must demonstrate compliance with standards covering customer service, pricing transparency and dispute handling. The initiative forms part of a wider consumer protection agenda that also includes fast-tracked rules to tackle subscription traps and misleading discount pricing, with new protections due by January 2027.
Under the payment arrangement, customer funds will be held in a secure account and released in stages as defined project milestones are reached, reducing the risk of money being lost to builders who abandon work after collecting upfront fees. According to reporting on the announcement, the payment system is expected to begin next week, while a government-backed "Approved Code" scheme for the home improvement sector is due to start in September.
How widespread is the problem?
Consumer complaints about home renovations rank among the highest categories handled by Citizens Advice, which has published a report calling for mandatory licensing, a single trader register and stronger enforcement. The government cited survey data from the Competition and Markets Authority indicating that more than a quarter of people who undertook home improvements in the past 18 months encountered difficulties, ranging from builders vanishing after receiving deposits to overcharging and unnecessary work.
A 2024 survey suggested customers lost more than £10 billion on home and garden maintenance services due to losses, inflated costs or unfair trader practices. The Federation of Master Builders has warned that homeowners lost approximately £14.3 billion over the past five years to unqualified or unlicensed builders, highlighting the scale of financial harm across the sector.
Scams have taken various forms. Previous reporting has documented "bait-and-switch" locksmith schemes, where customers received an initial low quote before hidden charges and unnecessary services were added to their bills.
What do industry representatives say?
The National Federation of Builders expressed scepticism about the scheme's effectiveness. Adas Rico Wojtulewicz-Richmond, the organisation's director of policy, stated:
Is this scheme going to stop bad actors operating and ripping people off? I don't think it will.He proposed an alternative approach in which every project would carry a "passport" documenting all work completed, allowing consumers to identify poorly performing companies and raising overall industry standards.
Opposition figures raised concerns about implementation. Shadow business secretary Andrew Griffith warned that the announcement risks
piling more paperwork onto the majority of businesses who already do the right thing, and argued that enforcement and sentencing reforms would be more effective than new administrative requirements. He suggested that
Those who break the rules will keep breaking them regardless of whether there is an app in the way.
Liberal Democrat business spokesperson Sarah Olney criticised the voluntary nature of the code, stating:
Rogue builders cause real harm and ruin real lives every year. The current system is simply not fit for purpose and this half-baked announcement falls frustratingly short from fixing it.She argued that
A voluntary code for tradespeople completely misses the mark. Rogue operators won't voluntarily - they will simply keep exploiting families in the shadows.
What has the government said?
Prime Minister Burnham said rogue tradespeople gave their
decent, hardworkingcounterparts a bad name and would be
putting the cowboys out of business. Business Secretary Jonathan Reynolds stated that
while home improvements can be stressful, we're taking action to protect consumers, support reputable traders and make sure people can spend their money with greater confidence and security.
The government-backed code is being developed by the furniture and home improvement ombudsman, according to reporting on the initiative. The scheme aims to establish a trusted trader database while ensuring that participating businesses meet higher operational standards.
What about private bailiffs?
Alongside the home improvement measures, the government has announced plans to regulate private bailiffs in England and Wales, protecting people in debt from
intimidating behaviour, unfair treatment or being pushed into excessive repayment arrangements. The changes will introduce mandatory accreditation and an independent complaints process for those facing enforcement action, with private bailiffs held to professional standards.
Sarah Sackman, minister for courts and legal services, said bailiffs performed an important function, but
with that responsibility must come high standards. The government will also examine how organisations such as Trading Standards coordinate with regulators and enforcement bodies to prevent consumers being
passed from pillar to post.
Last year, a Freedom of Information request revealed that understaffing in trading standards teams was contributing to increased scams and the sale of dangerous products. The broader regulatory review aims to address these coordination gaps.
What happens next?
The government-backed "Approved Code" scheme for home improvement traders is scheduled to launch in September 2026. A separate Department for Energy Security and Net Zero consultation on home upgrade consumer protection remains open for responses until 11.59pm on 10 September 2026, allowing stakeholders to submit feedback on proposed reforms.
The milestone-based payment system is expected to become operational next week, offering immediate protection to consumers entering into new home improvement contracts. These parallel initiatives represent an attempt to address consumer protection across multiple aspects of the home improvement and debt enforcement sectors simultaneously.
