The UK government has introduced a new register of approved traders alongside a digital payment application to address widespread fraud in the home improvement industry. The move comes after data revealed that 4.8 million homeowners encountered problems with repair and renovation work over the past 18 months. Prime Minister Andy Burnham unveiled the initiative, which includes a secure payment platform to prevent overcharging and substandard service delivery.
Consumer advocacy group Citizens Advice reported that 1.7 million homeowners faced unexpected costs or were overcharged, with the average financial loss per incident reaching £750. In one in ten cases, victims lost more than £5,000. The new system implements staged payments with a 24-hour cooling-off period, allowing consumers to withdraw from contracts if they feel pressured. For projects exceeding £2,500, payments will be held in escrow by the Dispute Resolution Ombudsman until both parties confirm satisfaction with the work. Traders who defy ombudsman rulings face exclusion from the payment app.
The Trusted Payment app, supported by the Chartered Trading Standards Institute, seeks to establish a verified network for consumers while offering legitimate tradespeople expanded business opportunities. James Walker, the app’s director, acknowledged that the system cannot eliminate all fraud but provides a structured way to mitigate risks. The government’s action follows several high-profile legal cases, including a builder sentenced to six years in prison for defrauding victims of £400,000. One affected homeowner, Sheri Ingram, lost £14,000 on a renovation that left her property structurally compromised.
A separate case involved David Vincent, who received a 28-month prison term for overcharging an 82-year-old homeowner £30,000, double the actual cost, for roof repairs. The work was also completed to an unsatisfactory standard. Hertfordshire council’s Trading Standards team later discovered Vincent had failed to provide proper cancellation terms, forcing the victim to spend nearly a year correcting defects such as uneven tiles and improperly installed materials.
Industry representatives have expressed reservations. Rico Wojtulewicz of the National Federation of Builders warned that many reputable contractors may choose not to participate, citing administrative burdens. He suggested an alternative approach: a digital building passport system that records all major work and contractor details. While the government’s register is set to launch this month, its long-term impact hinges on adoption rates among both consumers and tradespeople. The scheme targets an industry where fraud has cost homeowners hundreds of millions, but its effectiveness depends on widespread engagement.
