The Prime Minister has vowed to “put cowboy builders out of business” in a clampdown on rogue traders.

Andy Burnham has unveiled new measures designed to stop homeowners being ripped off during home renovations, as well as taking separate steps to target bailiffs who treat people in debt unfairly. 

An official approved traders scheme will launch to help customers identify trustworthy builders who meet high standards, as well as a new system to protect people’s money during building projects with payments directly linked to key project milestones. 

The government says that too many people are falling victim to dodgy tradespeople.

It says more than one in four UK adults who carried out home improvements work in the past 18 months experienced problems.

These include projects abandoned halfway through, elderly people pressured into overpaying for shoddy work and builders disappearing on holiday after taking upfront payments with little or no work completed.  

More than one in three of those who encountered problems faced extra costs as a result, amounting to an average of £750 each.

In 2024, people lost over £10.3bn on home and garden maintenance costs due to losses, overpriced costs or unfair practices. 

The Furniture and Home Improvement Ombudsman (FHIO) will deliver the Approved Code Scheme in partnership with the Chartered Trading Standards Institute.

Burnham says: “Cowboy builders don’t just rip people off. 

“They leave families with months of stress, the disruption of unfinished work, and that horrible feeling of being taken advantage of. 

“Not only that, but they give the vast majority of decent, hardworking tradespeople a bad name. 

“So we’re putting the cowboys out of business. 

“These changes mean you’ll now have the option to make sure your money is held safely and released bit by bit as the work gets done.”

Business Secretary, Jonathan Reynolds adds: “Your home is the biggest investment you make. 

“While improving it can be stressful; we are helping families to avoid it turning into a nightmare.”

FHIO deputy chief ombudsman Judith Turner says: “We are pleased that government is recognising the implementation of this code. 

“It is vital in building trust in the sector and helping consumers to identify trusted traders who are committed to increasing consumer confidence and resolving disputes fairly and impartially via an established and approved Ombudsman scheme.”