UK Government Launches Scheme to Protect Homeowners from Rogue Builders

Prime Minister Andy Burnham announced on Tuesday that the government will launch a new “trusted traders” scheme next month to curb the rise of “cowboy builders” who leave families with unfinished work and financial losses. The initiative will create a database of vetted contractors and a payment system that holds customers’ money in trust accounts, releasing it in stages after agreed milestones are met. The scheme is aimed at protecting the more than a quarter of homeowners who reported problems with home‑renovation work in the past 18 months, according to a Competition and Markets Authority survey that found consumers lost over £10 billion in 2024 to unfair practices.

Under the new rules, builders who sign up must demonstrate standards in customer service, transparency and dispute resolution. The government said the system will help consumers identify reputable traders and reduce the risk of builders disappearing after taking upfront payments. Business Secretary Jonathan Reynolds said the measures would give shoppers confidence and support legitimate businesses, while the prime minister warned that rogue tradespeople had damaged the reputation of “decent, hardworking” contractors.

The National Federation of Builders (NFB) criticised the plan, arguing that it would add paperwork without stopping bad actors. The NFB’s director of policy, Adas Rico Wojtulewicz‑Richmond, said the scheme would not deter fraudsters and suggested an alternative “passport” system that records every project step to raise industry standards. In a BBC Breakfast interview, Wojtulewicz‑Richmond noted that existing schemes already help consumers find trustworthy builders.

Shadow business secretary Andrew Griffith warned that the announcement could burden legitimate businesses with extra bureaucracy. “The government would do far better to beef up law enforcement and impose tougher sentences on the minority who fraudulently rip off customers,” he said. Liberal Democrat business spokesperson Sarah Olney echoed that sentiment, describing the scheme as “half‑baked” and arguing that a voluntary code would fail to stop rogue operators who would simply refuse to register.

The new scheme is part of a broader effort to protect consumers. The government also announced plans to regulate private bailiffs in England and Wales, providing an independent complaints process for those facing enforcement action and imposing professional standards on bailiffs. Minister for courts and legal services Sarah Sackman said that while bailiffs play an important role, they must operate to high standards. The government will review how Trading Standards collaborates with regulators and enforcement bodies to prevent consumers from being passed between agencies.

Last year, a Freedom of Information request by Which? revealed that understaffing in Trading Standards teams was contributing to an increase in scams and unsafe products. The new measures aim to address these gaps by strengthening oversight and consumer protection across both the building and debt‑collection sectors.