Voluntary cowboy builder scheme launches but critics say it won't stop rogue traders
Government launches voluntary code for builders to protect consumers, but industry figures and trading standards warn it lacks teeth.
The Full Story
A plain summary built from the channels that reported this story.
A new government-backed scheme aimed at protecting homeowners from cowboy builders has been announced, with measures including a database of approved traders and a payment system tied to project milestones. But the scheme is voluntary, and critics have already questioned whether it will do enough to stop rogue operators.
The plan, which comes into force next month, encourages builders to sign up to an approved code demonstrating high standards of customer service, transparency and dispute resolution. A new payment system would release money in stages as work meets agreed targets, rather than in one upfront lump sum. The government also announced increased regulation of bailiffs, who have been accused of using intimidation tactics against people struggling with debt.
Speaking to the media, Consumer Protection Minister Kate Dearden said the scheme was designed to stop people being ripped off. "They're lifetime savings that they've worked so hard for," she said. "That's why we're acting with this urgency, backing this industry-led scheme that's launching next week." But she acknowledged the code is not compulsory, adding that making it mandatory "would take a little bit more time" and that the government would monitor take-up and impact.
The National Federation of Builders was sceptical. "I don't think they're going to stop the bad actors operating," one representative said, noting that many existing schemes already exist and that the new system mainly digitises what is already in place. The Chartered Trading Standards Institute also pointed out that trading standards budgets have been cut by 50% over the past decade, raising questions about enforcement.
The scheme follows high-profile cases of exploitation, such as that of a 90-year-old man who was defrauded of £10,000 by rogue traders for non-existent roof repairs. The two men responsible were given prison sentences earlier this month.
Builders themselves have also expressed doubts. Michael Parinci, a construction professional with 25 years of experience, said on a news programme that he wished the scheme well but saw limited use in it. He warned that cash-in-hand work remains a major problem, with some traders offering to do jobs for cash to avoid VAT, and advised homeowners to check Companies House records and ensure builders have proper insurance.
Consumer watchdog figures suggest the scale of the problem is significant, with detriment to consumers from rogue builders reaching £10.3 billion in 2024. The government insists the scheme is a first step and has promised to review its impact closely, but many questions remain about how the code will be policed and whether voluntary participation will be enough to change behaviour.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | Channel 5 | BBC One | Sky News |
|---|---|---|---|
| A new voluntary scheme for builders introduces payment protection linked to milestones and requires standards in customer service, transparency, and dispute resolution. | · | ||
| Builder Michael Parinci expressed doubts about the scheme's effectiveness and advised consumers to check Companies House records and avoid cash payments. | · | · | |
| The National Federation of Builders said the changes are not enough. | · | · | |
| The scheme includes a database of approved traders and payment safeguards. | · | · | |
| Trading standards budgets have been cut by 50% over the past decade. | · | · |
Channel Perspectives
What each channel focused on, with key quotes.
Sky News focused on the investigative angle, with correspondent Amelia Harper highlighting that the scheme leaves more questions than answers. The report emphasised that the code is voluntary and not legislation, and raised concerns about how payment milestones would be monitored. It also noted the government's separate move to clamp down on bailiffs.
- “It's important to say that this approved code is not legislation. It is not mandatory.”
- “For me, it leaves more questions unanswered than it answers.”
- “How do you release these funds? Is it based on picture evidence? Who actually polices that?”
BBC ONE West led with a real-life example of an elderly man defrauded by rogue traders, illustrating the human cost. It included scepticism from the National Federation of Builders and highlighted that trading standards budgets have been halved, questioning whether enforcement is possible. The tone was balanced but raised serious doubts about the scheme's effectiveness.
- “I don't think they're going to stop the bad actors operating and I don't think they're going to stop those that are trying to fraud people by pretending they can do the works or do the works at good standards.”
- “Trading standards budgets have been cut by 50% over the past decade.”
- “So while the government wants to overhaul consumer protection there remains a question about funding.”
Channel 5 took a practical consumer-advice approach, interviewing a builder who was sceptical about the voluntary scheme. The focus was on cash-in-hand work as a major risk factor, with tips on checking company records and insurance. The tone was direct and helpful, incorporating viewer stories of dodgy builders.
- “I don't see much use in it at the end of the day.”
- “So cash builders Whilst there may be some, you know sole traders that are under the threshold for v80 Professional builders if they're doing good work generally will not take cash”
- “Check companies house and look at the company that you're dealing with.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.