TrustMark

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Theres nothing secondary about the ancillary works triggered by Green Deal An urgent warning by TrustMark
What is the problem? In the run up to the launch of the Governments flagship energy efficiency policy, the Green Deal, TrustMark is warning again of the high risk of rogue traders cashing in on what the Secretary of State has described as the most ambitious home improvement programme since the Second World War. The big problem revolves around an unfortunate decision to drop any safeguards in the Green Deal Code of Practice regarding what have been called ancillary works in effect, the basic home repairs and maintenance that will inevitably be required before Green Deal improvements can be made to our homes. For example: The re-pointing of walls and chimneys before flues can be safely installed for new boilers. Creation of better ventilation to timber floors, or the treatment of damp and other problems before floor or solid wall insulation can be installed. Repairs to fix slipped roof tiles, to repair leaks, unblock ventilation etc. before loft insulation can be installed and work effectively.

What is the likely scale of the problem? The Government wants the Green Deal to transform the energy performance of 14 million homes. But an opinion poll by YouGov i this month suggests that 38% of all British homeowners already suspect their homes will need repairs or maintenance work carried out before such energy saving measures could be useful or worthwhile. In fact, the true extent of necessary repairs will rapidly become apparent the moment we start work on our ageing housing stock. Assuming just a 25% take up of Green Deal work in the pre-1980 owner occupied housing stock (the Governments prime target for Green Deal), TrustMark estimates that an additional 1.45 billion - 2.9 billion market for home repairs will be created as a direct result of the Green Deal.ii In many cases this work will fall outside any of the protections created for Green Deal.

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On top of this, there is the value of additional home improvement work purchased by the homeowner at the same time and any work funded privately. Such work, including things like new kitchens, home remodelling and redecoration services, can be up-sold by Green Deal Providers but will also fall outside the Green Deals Code of Practice requirements. Indeed, the YouGov opinion poll reveals that only 22% of homeowners say they would be more likely to use Green Deal finance than using more traditional sources of finance to fund the work, such as putting it on the mortgage, using savings, using a credit card loan, using money from friends or family, or using some other privately organised finance. This means billions of pounds of home improvements and ancillary work that will fall outside Green Deal funding and outside Green Deal protection. If the public is not supported in its attempts to find reputable, vetted and insured firms to carry out this work, we are putting at risk: Homeowners who are very likely to find they need repairs done before they can go ahead with Green Deal Plans, or who may choose to fund additional home improvements at the same time. This particularly applies to vulnerable people including the elderly and younger consumers, the groups who need these home improvements the most to help reduce their fuel bills. The technical success and effectiveness of energy-saving measures which can end up totally ruined if accompanied by bodge jobs and poor ancillary works. The reputation and success of the Green Deal initiative itself which could easily become tarnished by the activities of rogue firms cashing in on a new sales opportunity and low consumer awareness of where the Green Deals consumer protection starts and finishes.

Does the Government know about these risks? Yes. Consumer advice organisations have consistently made it known that they expect to see that the implementation of the Green Deal will trigger a wave of associated building work and an increase in rogue trader activities and consumer detriment. A 737 million problem annually is just about to get much worse. Consequently, the Department of Energy and Climate Changes original draft Green Deal Code of Practice was developed in close liaison with TrustMark and other advisers. It stated: Any ancillary works carried out in relation to and/or preparation for Green Deal financed measures must be carried out by members of Competent Persons Schemes (or their equivalent) or TrustMark registered firms if available and appropriate for the work being carried out. However, these safeguards have been taken out of the latest version of the Code of Practice which was laid before Parliament in June 2012. There is nothing at all about ancillary works in the current regulations. iii We have had a good working relationship with officials working on the Green Deal and there was some surprise when TrustMark pointed out this last minute change to the document. While we understand the officials are keen to see a statement on ancillary works reinserted into the Code of Practice, this is far from certain yet.

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So what needs to happen now? TrustMark and a range of charities, consumer advice bodies, trade associations and industry groups are calling for an urgent updating of the Code of Practice before the practical start of the Green Deal. The Green Deal Code of Practice must include an obligation upon Green Deal Providers to signpost domestic customers to reputable firms home repair, maintenance and improvement specialists who are vetted, insured and required to work to Governmentendorsed standards, eg: Where a domestic customer is required to carry out ancillary work in relation to, in preparation for, and/or in addition to Green Deal financed measures, the Provider should signpost the customer to local reputable firms registered with TrustMark and/or Competent Persons Schemes and working to Government endorsed standards. While the major responsibility lies with Green Deal Providers to tell people about TrustMark and how it can help homeowners, we also hope to see a high level of awareness of this requirement by assessors, installers, the Green Deal advice service and all parties who are dealing with the customer in order to ensure consistent advice and signposting. TrustMark will continue to cooperate closely with Green Deal Providers and all other parties to ensure they can easily access registered firms within the TrustMark scheme and that they have all the relevant information to give to domestic customers. We also strongly recommend that an integrated, coordinated communications campaign via Government, industry and consumer protection groups is established, to ensure consumers are aware of the limits of Green Deal protection as well as the benefits. TrustMark is a not-for-profit organisation licensed by Government and supported by industry and consumer protection groups. Its logo bears the words Government endorsed standards. TrustMark provides a free and easy service to householders to select a tradesman with confidence, knowing the firms competence and fair trading practices have been independently checked. TrustMark has the largest database of accredited tradesmen in the country, providing national coverage with more than 21,000 trades listed on its database and generating more than 300,000 viewings by consumers each month. We see the Green Deal and the ancillary works it will create as a positive opportunity for domestic building led growth in the economy. But we also see the importance of Government leadership to signpost people to TrustMark if it is promoting opportunities to households and encouraging them to undertake all sorts of refurbishment and building works, it is equally essential to help people avoid the rogue traders (who will also be aware of the opportunities). We are united in our desire for a more energy efficient housing stock. But we must avoid the damage caused by rogue traders sweeping in to profit from the ancillary work for Green Deal customers and putting the entire Green Deal programme at risk of technical failure and reputational ruin. We need to ensure all households know how to find vetted, inspected and insured local tradesmen, rather than leaving Green Deal customers at the mercy of dodgy referrals, leaflets through the door, telephone directories or unverified information on findanyoldbuilder.com websites and social media.

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All survey figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,013 adults of which 1,289 were homeowners. Fieldwork was undertaken between 14-17 September 2012. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). Using just English data from the English Housing Survey published by DCLG, there are about 14.4 million owner occupied households. Of those, about 11.8 million were built before 1980. Assuming 25% of these households incur a typical RMI cost of 500-1,000 each (figures calculated by OFT research in 2011), this would lead us to 1.45 billion -2.9 billion in repairs and maintenance in England alone.
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Current draft Code of Practice: http://www.decc.gov.uk/assets/decc/11/tackling-climate-change/greendeal/5680-draft-green-deal-code-of-practice-.pdf For further information on TrustMark: www.trustmark.org.uk