'Cowboy builders' to face new government crackdown

The UK government is introducing new measures to shield homeowners from unscrupulous tradespeople, commonly known as "cowboy builders." Launching next month, the initiative features a database of trusted traders and a novel payment system designed to offer greater financial protection.

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leave families with months of stress

Traders who sign up for the scheme must meet specific standards for customer service, transparency, and dispute resolution. Prime Minister Andy Burnham highlighted the significant stress and unfinished work unscrupulous tradespeople inflict on families. He stated the government aims to put these "cowboys out of business," asserting that they give their "decent, hardworking" counterparts a bad name.

However, the proposed changes have met with skepticism. The National Federation of Builders (NFB) questioned whether the scheme would effectively stop rogue operators, suggesting existing measures are sufficient. The NFB's director of policy, Adas Rico Wojtulewicz-Richmond, proposed a "passport" system for each project to record all work done, which he believes would improve industry standards and consumer protection.

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Is this scheme going to stop bad actors operating and ripping people off? I don't think it will.

The Conservative Party also voiced concerns, suggesting the announcement could lead to unintended consequences, such as increased administrative burdens for legitimate businesses. Shadow business secretary Andrew Griffith argued that the government should instead focus on strengthening law enforcement and imposing tougher penalties for fraudulent traders. He contended that those who break the rules will continue to do so regardless of new government initiatives.

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It protects consumers because you can find out which companies are doing a poor job, and it brings up the industry standards.

Consumer complaints regarding home renovations are a significant issue, with Citizens Advice reporting it as one of their largest sources of consumer grievances. A survey for the Competition and Markets Authority indicated that customers lost over £10 billion in 2024 on home and garden maintenance services due to losses, inflated costs, or unfair practices. The new payment system will hold customer funds in an escrow account, releasing them in stages as project milestones are met, aiming to prevent builders from disappearing after receiving upfront payments.

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we're taking action to protect consumers, support reputable traders and make sure people can spend their money with greater confidence and security