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UK to launch trusted-trades database and milestone payment safeguards
The government says more than a quarter of people who carried out home improvements in the past 18 months reported problems, and it cited survey estimates of over £10 billion lost in 2024 due to trader losses and unfair practices.
The UK government said it will launch next month a scheme to protect customers from so-called cowboy builders by pairing a new database of trusted traders with a payment system that holds consumers' money in an account and releases it in parts as project milestones are completed, according to BBC Business.
Traders who sign up will need to demonstrate standards for customer service, transparency, and dispute resolution. Prime Minister Andy Burnham said unscrupulous tradespeople leave families with “months of stress” and can result in unfinished work, citing a pattern where builders disappear after upfront payments were made.
The government also pointed to survey work cited by the Competition and Markets Authority, saying that in 2024 customers lost more than £10 billion on home and garden maintenance services due to losses, overpriced costs, or unfair practices. Citizens Advice added that home renovations are among its biggest sources of consumer complaints.
Trade and industry responses were mixed, with the National Federation of Builders saying the changes would not stop rogue operators. The NFB also argued that while schemes already exist to identify trustworthy builders, a better approach would be a project “passport” that records all work completed.