Barred – Code Or Go

CTSI has had its say on new plans to stop householders being robbed of £billions each year by rogue traders, while promoting installers that work to an Approved Code.

The Chartered Trading Standards Institute says more than one in four UK adults who carried out home improvements work in the past 18 months experienced problems; projects abandoned halfway through, undue pressure on elderly people to overpay for shoddy work or even builders disappearing on holiday with upfront payments with little to no work completed.

£billions

In 2024, people lost over £10.3 billion on home and garden maintenance costs due to losses, overpriced costs or unfair practices. Delays and mounting costs can also cause severe stress which destroys lives.

The Department for Business, Skills, Innovation, and Trade (DBIST) has announced measures that will help consumers to identify and hire trusted, competent traders through a Code. DBIST also announced its support for the Trusted Payment Scheme that is designed to keep consumer’s money safe while work is ongoing and funds are only released when milestones in the works are reached.

Read our article about the government’s plans here

Approved Code Scheme

The Chartered Trading Standards (CTSI) and the Approved Code Scheme (ACS) are working with the Furniture and Home Improvement Ombudsman (FHIO) to develop an Approved Code in the home improvement sector, which FHIO plans to launch during the autumn.

The Approved Code Scheme is the UK’s only sector-wide code framework that was established to give consumers greater confidence when they buy from members of the approved scheme. It also raises the standards of trading of all businesses that operate under the relevant Approved Code for that sector. 

Effective enforcement

As part of the measures, DBIST also announced their ongoing work to review the consumer protection landscape and Trading Standards. CTSI is working closely with the government officials on this review to ensure that there is an effective enforcement landscape that protects consumers and honest businesses.

John Herriman, Chief Executive at CTSI, said: “CTSI welcomes the government’s announcement that it intends to clamp down on fraudulent tradespeople. Such criminals deliver substandard work that costs consumers ,including vulnerable victims, significant amounts of money to rectify the damage they cause to their homes, or who take the money and run.”

Warm Homes Plan scam

Herriman added: “Whilst this announcement is a welcome step forward, CTSI is concerned that funding initiatives like the Warm Homes Plan provides an opportunity for fraudulent trades to capitalise on rising demand for home improvements. CTSI would therefore urge the government to see this as a great first step and to introduce a mandatory licence for tradespeople working in the home repair and maintenance sector, which would make it simpler and cheaper for enforcement agencies to prosecute fraudulent tradespeople.”

Tim Day, CTSI Lead Officer for Scams and Doorstep Crime, said: “It's very welcome news that a scheme that includes compulsory redress will protect consumers in a market where detriment is currently far too high. It's far too easy for unqualified and fraudulent actors to enter the market and impossible for consumers to be able to identify the legitimate traders from the criminals. Designing-out fraud and criminality via a compulsory registration and licensing scheme for trades operating in or on consumers' homes remains essential.”

Cost-cutting competition

Katherine Hart, CTSI Lead Officer for Scams and Doorstep Crime, said: “We have seen the devastating impact rogue traders can have on individuals and families, not only through significant financial losses but also through the lasting psychological and emotional effects on those who are often already facing difficult circumstances. Some businesses also suffer when faced with some illegitimate cost-cutting competition who shouldn’t be in the market in the first place.

“The introduction of a Code alongside a compulsory licensing scheme would provide enhanced consumer protection, allow choice, improve confidence in the marketplace and help support reputable traders who are increasingly affected by rogue and criminal activity within the consumer landscape.”

Picture: Tradespeople and builders without the right skills or simply intent on ripping-off customers for shoddy work will find themselves clamped down on from this autumn.

Consumers who need help or advice in relation to fraudulent builders are urged to contact one of the following: in England and Wales, contact the Citizens Advice Consumer Helpline on 0808 223 1133. In Scotland, contact Consumer Advice Scotland on 0808 164 6000. In Northern Ireland, contact Consumerline on 0300 123 6262.