A new government-backed Approved Code scheme is being rolled out this month in an effort to crack down on rogue traders and so-called cowboy builders, offering homeowners greater confidence when hiring tradespeople for home improvement projects.
The scheme requires businesses to sign up formally, demonstrating that they meet higher standards of customer service, transparency and dispute resolution. It is designed to protect homeowners who fall victim to tradespeople who fail to finish projects, complete work to a poor standard, or demand additional payment beyond agreed costs.
Alongside the Approved Code, a Trusted Payments app is also being introduced. The app is intended to ensure payments are released according to agreed project milestones, reducing the risk of tradespeople leaving jobs unfinished after receiving upfront money. The Approved Code has been developed by the Furniture and Home Improvement Ombudsman (FHIO), while the payments system has been developed separately by Trusted Payments.
Launching the initiative, Prime Minister Andy Burnham said cowboy builders caused significant distress for families. He said such traders left households facing "months of stress, the disruption of unfinished work, and that horrible feeling of being taken advantage of," and added that they damaged the reputation of the "vast majority of decent, hardworking tradespeople."
He said the new measures would give homeowners the option to have their money "held safely and released bit by bit as the work gets done."
The announcement follows figures suggesting more than £10.3 billion was lost by homeowners on home and garden maintenance in 2024 due to overpriced work, unfair practices or financial losses. Evidence from a Citizens Advice report titled 'Built to Fail' found that more than one in four UK adults who carried out home improvement work in the past 18 months experienced problems. These included projects abandoned partway through, pressure placed on elderly homeowners to overpay for substandard work, and cases where tradespeople took upfront payments and failed to return to complete jobs.
More than one in three of those affected also faced additional unexpected costs, losing an average of £750 each. The report noted that delays and rising costs could cause considerable stress for those involved.
While the Approved Code and Trusted Payments app represent a new government-backed approach, several existing schemes already operate in this space. One example is the vetting and payment system run by the Elite Construction Network, which holds client funds in a "Vault" until work is completed to an agreed standard. Tradespeople registered with the network are vetted, with checks made on company registration, insurance, health and safety documentation, industry experience and quality control processes. References are also checked directly with previous clients rather than relying solely on online reviews.
Dan Hensher, co-founder of the Elite Construction Network, said the network had been created because homeowners previously had no reliable way of establishing who they could trust. He said vetting needed to take place before a tradesperson met a customer, rather than after problems arose, and described the government's announcement as "a welcome step" that reflected the need for properly checked industry standards.
Callum Tharratt, co-founder of the network, said the majority of tradespeople operated properly but had been undercut for years by those who did not meet the same standards. He said schemes such as the Elite Construction Network allowed reputable trades to demonstrate their standards while giving homeowners confidence to hire them, and described a crackdown on cowboy builders as positive news for honest businesses in the sector.
Other organisations, including the recently launched findmyjus.com, operate similar vetting schemes covering a range of services, while search platforms such as Checkatrade, MyBuilder.com and the Federation of Master Builders remain common starting points for homeowners seeking reputable tradespeople. Having a detailed written contract in place with a builder continues to be recommended for larger projects such as self-builds or extensions.
According to the government, the Trusted Payments app is due to go live from the first week of September, with more than 100,000 traders expected to have access by the end of that month. The Approved Code is expected to be live with initial retailers by the end of September, with full rollout planned by December 2026.
Judith Turner, Deputy Chief Ombudsman at the Furniture and Home Improvement Ombudsman, welcomed the government's recognition of the code, describing it as important for building trust in the sector. She said it would help consumers identify trusted traders committed to increasing consumer confidence and resolving disputes fairly through an established and approved ombudsman scheme.
