Prime Minister Andy Burnham has launched a crackdown on so-called “cowboy builders” and aggressive private bailiffs, promising new protections for households — although the flagship scheme intended to help consumers identify trusted tradespeople will remain voluntary.
Under the plans, a government-backed Approved Code for the home-improvement sector will allow businesses to demonstrate that they meet standards covering customer service, transparency and dispute resolution.
A separate Trusted Payments system is also due to launch in early September, allowing customers to link payments to stages of a building project rather than handing over large sums upfront.
The Government says the measures will help protect households from rogue traders while supporting reputable businesses. But because participation in the trader scheme will be voluntary, critics have questioned whether the operators most likely to rip customers off will simply remain outside it.
Burnham vows to put cowboy builders ‘out of business’
Burnham said rogue builders could leave families facing months of stress, unfinished work and substantial financial losses while damaging the reputation of legitimate tradespeople.
The Prime Minister said householders would have the option of ensuring their money was held safely and released gradually as agreed work was completed.
Flagship Approved Code will be voluntary
The central trader measure is an Approved Code being developed for the home-improvement sector.
Businesses that choose to participate will be expected to demonstrate standards covering customer service, transparency and dispute resolution, giving consumers a way to identify traders who have signed up to enhanced requirements.
The Chartered Trading Standards Institute says businesses operating under an Approved Code commit to standards above basic legal requirements and must provide access to dispute resolution when something goes wrong.
However, membership of the new home-improvement scheme will be voluntary. Rogue traders will not be legally compelled to join simply because the scheme exists.
New payment system will protect customers’ money
The Trusted Payments system is expected to become available in early September.
Rather than paying a contractor a substantial amount upfront, householders will be able to link payments to agreed milestones in the project, with money released in stages as work is completed.
The Government expects more than 100,000 traders to gain access before the end of September. Participation in the payment system will also be optional.
More than one in four report home-improvement problems
The Chartered Trading Standards Institute says more than one in four UK adults who carried out home-improvement work during the previous 18 months experienced problems.
Examples included projects being abandoned halfway through, customers being pressured to overpay for poor work and contractors disappearing after receiving upfront payments.
More than one in three of those affected faced additional costs, while the Government says consumers lost more than £10.3 billion through losses, overpriced home and garden maintenance costs or unfair practices during 2024.
Trading Standards welcomes crackdown
The Chartered Trading Standards Institute has welcomed the Government's commitment to tackle fraudulent builders and is working with the Furniture and Home Improvement Ombudsman on the new Approved Code.
The Government is also reviewing the wider consumer-protection landscape, including how Trading Standards, Citizens Advice, regulators and redress schemes interact.
Bailiff reforms go further than builders scheme
The second half of Burnham's announcement concerns private bailiffs and contains substantially more compulsory regulation.
Private enforcement agents in England and Wales will be required to obtain accreditation from the Enforcement Conduct Board, or work for an accredited company, in order to secure the certificate required to operate.
People facing enforcement action will also have access to an independent complaints process.
Government targets intimidating bailiff behaviour
Ministers say the reforms follow concerns about enforcement agents using intimidating behaviour or pressuring people into repayment arrangements they cannot afford.
Courts minister Sarah Sackman said bailiffs perform an important function but that people already struggling with debt should not face intimidation, unfair treatment or repayment demands that leave them unable to afford essentials.
Conservatives say scheme risks more paperwork
Shadow business secretary Andrew Griffith has criticised the builders package, arguing that a voluntary initiative risks increasing bureaucracy for reputable companies without stopping traders already prepared to break the rules.
He said the Government should instead strengthen law enforcement and impose tougher consequences on people who fraudulently rip off customers.
That is the Conservative Party's political assessment of the proposals rather than evidence that the new measures will fail.
Voluntary scheme leaves central question unanswered
The Government's reforms give consumers additional tools that could make it easier to identify reputable builders and reduce the financial risks associated with large upfront payments.
But the voluntary nature of both the Approved Code and Trusted Payments system creates an obvious limitation: a rogue trader will not be forced to participate.
The bailiff reforms are different. Accreditation will become a condition attached to the certification needed by private enforcement agents to operate, giving that part of Burnham's crackdown considerably more regulatory force.
The result is a package containing two very different approaches: compulsory oversight for private bailiffs, but a largely voluntary system designed to steer consumers towards reputable builders.
Sources
- UK Government: Government steps in to protect families from cowboy builders and aggressive bailiffs
- Chartered Trading Standards Institute: CTSI welcomes Government commitment to clamp down on fraudulent builders
- Chartered Trading Standards Institute: Approved Code Scheme
- ITV News: Burnham is planning to stop cowboy builders — but how will it work?