Consumer protection minister pours cold water on builders’ licence proposal

First reported on The Construction Index
30 Second Briefing
Consumer protection minister Kate Dearden has dismissed calls for a compulsory builders' licensing scheme in the UK, citing concerns over increased consumer costs and a lack of evidence that such schemes reduce poor-quality work. The debate, initiated by Conservative MP Mark Garnier, highlighted support from 77% of SME builders and 78% of consumers for licensing, referencing successful models in the US, Australia, and New Zealand. Liberal Democrat MPs Tom Gordon and Ben Maguire argued for improving existing systems like TrustMark and enhancing accessible redress mechanisms to address rogue builders effectively.
Technical Brief
- Consumer protection minister Kate Dearden rejected a compulsory builders' licensing scheme, citing increased consumer costs and insufficient evidence of quality improvement.
- Licensing schemes aim to enhance quality and consumer protection but may also lead to higher prices without reducing poor-quality work.
- Liberal Democrat MP Tom Gordon criticised TrustMark, highlighting its failure in the spray foam insulation scandal under the Energy Company Obligation scheme.
- Gordon argued that TrustMark is ineffective, suggesting that government-endorsed schemes should ensure contractor competence.
- MP Ben Maguire pointed to the legal system's cost and complexity as barriers to consumer redress, advocating for accessible alternatives like small claims courts and ombudsman schemes.
- Maguire also recommended alternative dispute resolution mechanisms to provide fair outcomes without the burden of court proceedings.
- The debate underscores the tension between implementing new licensing systems and improving existing consumer protection frameworks.
Context From Recent Coverage
- The Federation of Master Builders' proposed licensing scheme has garnered significant support, with 77% of SME builders and 78% of consumers in agreement, highlighting a substantial consensus within the industry and consumer base despite the minister's opposition.
- Although the policy category has seen only a handful of articles recently, the inclusion of regions such as Wyre Forest and Harrogate and Knaresborough suggests a focus on localised impacts and potential regional disparities in construction practices and safety standards.
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