Issued by: Department for Business, Innovation, Science and Trade

A new clampdown on cowboy builders and rogue bailiffs has been announced by the government today, helping to close loopholes that have let unscrupulous operators fleece households and intimidate people already struggling with debt.

From September, a new government supported scheme will help people identify and hire trusted traders with confidence. Businesses who sign up to the Approved Code will be able to demonstrate that they meet higher standards of customer service, transparency and dispute resolution. There will also be a new system to protect people’s money during building projects with payments directly linked to key project milestones.

This will back the many builders across the UK who do the right thing by their customers and prevent them being undercut by rogue operators.

Currently, too many people are being ripped off. More than one in four UK adults who carried out home improvements work in the past 18 months experienced problems – whether it be 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.

More than 1 in 3 of these faced extra costs, losing an average of £750 of their hard-earned cash. 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.

Tackling growing concerns over unregulated trades is the latest step in the Prime Minister’s series of practical everyday fixes designed to restore fairness and give families more room to breathe.

Prime Minister, Andy Burnham said: "Cowboy builders don’t just rip people off. They leave families with months of stress, the disruption of unfinished work, and that horrible feeling of being taken advantage of. Not only that, but they give the vast majority of decent, hardworking tradespeople a bad name.

"So we’re putting the cowboys out of business. These changes mean you’ll now have the option to make sure your money is held safely and released bit by bit as the work gets done.

"It’s the latest in our series of everyday fixes to give people room to breathe and make Britain fairer. We’ve taken on subscription traps, fake discounts, and now we’re coming for the cowboy builders. Enough is enough.”

Business Secretary, Jonathan Reynolds said: "Your home is the biggest investment you make. While improving it can be stressful; we are helping families to avoid it turning into a nightmare.

"We’re taking action to protect consumers, support reputable traders and make sure people can spend their money with greater confidence and security.”

Also announced today is tougher regulation to better protect people facing debt in England and Wales through increased oversight of the enforcement industry. Private bailiffs will be held to consistent professional standards and those facing enforcement action will have access to an independent complaints process - strengthening the rights of the most vulnerable.

Currently, families are at times pressured into repayments that leave them unable to afford essentials of day-to-day life as they continue to repay what they owe.

Minister for Courts and Legal Services, Sarah Sackman said: "Bailiffs have an important job to do, but with that responsibility must come high standards. When someone is already struggling with debt, the last thing they should face is intimidating behaviour, unfair treatment or being pushed into excessive repayment arrangements they cannot afford.

"That’s why we’re strengthening the rules. All private bailiffs will have to meet proper, professional standards and will be subject to independent oversight - giving people greater protection and somewhere to turn when things go wrong.”

Independent oversight will be made mandatory for private bailiffs in England and Wales, requiring them to be accredited by the Enforcement Conduct Board themselves, or to work for an enforcement firm that is, in order to obtain or renew the certificate they need to work.

To back up this action, Ministers are also today confirming longer term plans to overhaul the wider consumer protection landscape. This will examine how organisations like Citizens Advice and Trading Standards work with regulators, enforcement bodies and redress schemes to make the system faster, easier to access, and better at spotting and tackling harm early.

For example, if someone has been victim of a doorstep scam, has an issue with a tradesperson, or want to know how to stay protected when buying a used car, we’ll be looking at ways to make it easier for organisations to work together so consumers are not passed from pillar to post.

Deputy Chief Ombudsman, Furniture and Home Improvement Ombudsman, Judith Turner said: "The Furniture and Home Improvement Ombudsman (FHIO) welcomes Government support in the development of an approved code for the Home Improvement Sector. The Approved Code Scheme delivered by FHIO, in partnership with the Chartered Trading Standards Institute represents a gold standard.

"We are pleased that government is recognising the implementation of this code. It is vital in building trust in the sector and helping consumers to identify trusted traders who are committed to increasing consumer confidence and resolving disputes fairly and impartially via an established and approved Ombudsman scheme.”

James Walker, Trusted Payments said: "We welcome this move by Government. Working with initiatives like Trusted Payments will immediately deliver the increased consumer protection the market needs, so consumers can spend money securely.”

John Herriman, Chief Executive at the Chartered Trading Standards Institute, said: "It is fantastic news to see the Government’s support to tackle the issues consumers face in the home improvement sector. We look forward to engaging with Government on the wider review of the consumer protection landscape and will continue to press for a system that is properly funded and equipped to protect consumers from harm before it happens, not just after.”

Peter Grigg, Executive Director of Partnerships and Advocacy at Citizens Advice, said: "The government’s action today paves the way for much-needed changes in sectors that are infamous for rogue behaviour.

"We know when things go wrong people are left significantly out of pocket, living in unsafe conditions and feeling they have nowhere to turn. Strengthening the role of consumer protection provided by organisations like Citizens Advice and Trading Standards is vital in improving everyday experiences for so many people across the country.

"We look forward to working with the government on the review to ensure it makes a difference for the people we support every day."

Martin Lewis of MoneySavingExpert, speaking as Chair of the Money and Mental Health Policy Institute said: "Sadly, you’re over three times more likely to be in debt crisis if you have a mental health problem, one result of which is that most people who get a bailiff knocking at their door are vulnerable. Many bailiffs behave fairly – but some have got away with acting with impunity due to the lack of mandatory independent regulation. We’ve long campaigned for that to change as aggressive debt collection can and does destroy lives.

"So we’re delighted the government has listened and made today’s bailiffs announcement – it’s a genuine step forward! Bailiffs will have to comply with the rules or lose their licence. And because regulation is mandatory not opt-in, it should be easier in future to bring in faster, more ambitious compassionate rules. Let’s hope so.”

Rocio Concha, Which? Director of Policy and Advocacy, said: "In recent years the consumer enforcement system has been hollowed out to the point where cowboy builders and other rogue traders are thriving - leaving ordinary people feeling powerless as their complaints are routinely ignored.

"This is a really positive step and the government rightly recognises that action to tackle rogue traders now must go hand-in-hand with wider reform of the consumer protection landscape.

"The system urgently needs a major overhaul to make it fit for the digital age and give consumers confidence that they won’t be ripped off by crooks or conmen when they hand over their hard-earned cash for home improvements or other products and services.”

Notes to editors:

The Trusted Payment and Approved Codes Scheme have been developed by the Trusted Payments and the Furniture and Home Improvement Ombudsman (FHIO) respectively. Find out more here: [https://trustedpayments.uk]”

The Trusted Payments app will go live next week, with over 100,000 traders able to access before end of September. The Approved Code will be live with first retailers by end of September and fully live by December 2026.

CTSI and the Approved Code Scheme are working with the Furniture and Home Improvement Ombudsman (FHIO) to develop an Approved Code in the home improvement sector, which FHIO plan to launch during the Autumn.

More than one in four UK adults who carried out home improvements work in the past 18 months experienced problems. More than 1 in 3 (37%) of these faced extra costs, losing an average of £750 of their hard-earned cash. Source: https://assets.ctfassets.net/mfz4nbgura3g/4qUOnDFflkrhmwU24iZz9O/a64d57e2cac03cd93b991f1f3c51c75f/Built_to_fail__How_the_home_repairs_market_is_failing_consumers.pdf

In 2024, people lost over £10.3 billion on home and garden maintenance costs due to losses, overpriced costs or unfair practices. Source: https://assets.publishing.service.gov.uk/media/67e2c07374e40de685195b55/consumer-detriment-survey-2024.pdf

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