Consumer protection advocates are backing a new initiative designed to reduce fraud in the home repair sector. The Trusted Payment app, endorsed by the Chartered Trading Standards Institute, establishes a protected payment system where milestone payments are delayed by 24 hours, allowing consumers time to cancel if they feel pressured. For projects exceeding £2,500, payments for completed work are held in escrow by the Dispute Resolution Ombudsman until both parties approve the finished job, with a two-year warranty provided. Traders who refuse to comply with ombudsman decisions face removal from the app.
The protection comes in response to widespread problems in the sector. According to Citizens Advice data from July, approximately 4.8 million homeowners experienced issues with home repair work in the previous 18 months, ranging from incomplete jobs to safety concerns. Roughly 1.7 million homeowners had to pay additional funds to correct earlier work or address overcharging, with an average loss of £750 per household. One in ten of these cases involved additional costs exceeding £5,000.
The prime minister pledged action against rogue builders as part of initial policy commitments, with a register of trusted traders scheduled to launch this month. The Chartered Trading Standards Institute’s director stated the system aims to create a trusted network while helping legitimate tradespeople gain business advantage. However, the National Federation of Builders expressed reservations about the voluntary approach, suggesting that reputable builders might opt out due to time constraints. The federation proposed an alternative system: a digital building passport that logs all significant work completed on properties and identifies which contractors performed substandard work, creating accountability for poor quality across the industry.
Recent prosecutions illustrate the problem’s severity. A builder from Swansea received a six-year prison sentence following convictions for defrauding nine victims of £400,000 across a decade of offending. Separately, a roofer from London was sentenced to 28 months imprisonment for fraud and unfair commercial practices after overcharging an elderly customer approximately £25,000 for roof work, completing it poorly and at excessive speed.
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