New scheme seeks to improve trust in the building sector
Following the recent announcement by the Government that it “steps in to protect families from cowboy builders” – I have been investigating the scheme further.
The private service independent of government, Trusted Payments, is working in partnership with TrustMark, the only UK Government-Endorsed Quality Scheme, for work carried out in and around the home. The scheme will be launched on 1 September 2026.
The video I published on social media reporting on the announcement continues to attract many sceptical comments from builders and consumers. I attribute this to the limited information provided and so I spoke with Trusted Payments’ CEO, James Walker.
@thecomplainingcow Consumers lose more than £10 billion a year to rogue builders and traders. The government has announced new protections—but will they actually stop the scammers? #builders #scams #consumerrights #buildingwork #trusted
What is TrustMark?
The new initiative aims to protect both traders and customers. Traders registered with TrustMark must abide by standards regulating their quality of work and customer service and be committed to its Code of Conduct. These traders can then register with Trusted Payments which gives them and customers a secure, transparent way to pay for home improvement work, from quote to completion. BookaBuilderUK and two Trading Standards schemes will be added over the next month, so there should be 140,000 traders by October 2026.
How does Trusted Payments work?
The Trusted Payments App requests a “completion payment” of 10% at the start of works, held in Escrow until the project is complete and the consumer has signed it off. The trader can request more funding to buy materials etc. Traders then receive further payments based on agreed milestones. Traders using the App will be able to sign up to the Furniture and Home Improvement Ombudsman (FHIO) Approved Code Scheme, in partnership with the Chartered Trading Standards Institute (CTSI).
Costs and coverage
The consumer pays between £45 or £85 – or just £25 for jobs up to £2,500 – and can build this into the quote they receive. The scheme includes £20,000 insurance cover in case there are problems, underwritten by an A-rated insurer. I was surprised to discover that this also includes cover for scammers, “walk off”, cease trading, repair and any consequential damage.
Resolving disputes
Many builders asked me about how this App would protect them from non-paying customers. Some customers do not pay but with this App traders would not continue work until they have been paid for a milestone. Crucially, if there is a dispute, the FHIO will step in to resolve it. The Ombudsman is there at all stages for the trader if there is a payment issue, and for the consumer a dispute has to be open with the trader for 45 days. This is quicker than any other scheme and it is direct to the consumer. Ombudsman can come in more than once too.
Ombudsmen
Ombudsmen provide the highest standards of Alternative Dispute Resolution (ADR) and give consumers access to fair, independent redress, helping to resolve disputes more quickly. They also encourage stricter standards across the whole industry.
As a leading consumer expert on the Alternative Dispute Resolution sector and has researched, investigated and reported on it for over 10 years. She says that court action is expensive, stressful and often beyond the reach of many households. The FHIO has championed fair trade, raised standards and put things right for more than three decades. She notes “The FHIO continues to play a vital role resolving disputes for consumers and businesses and this latest announcement should enhance its ability to do more.”
Kevin Grix, CEO and Chief Ombudsman of The Ombuds Group, said:
We are delighted that the Prime Minister and his Government have backed our ambition to strengthen consumer protection and raise standards across the industry.
Now we are breaking new ground. Our new Chartered Trading Standards Institute Approved Code for the Home Improvements industry, alongside our partnership with Trusted Payments, marks a major step forward.”
The end of cash payments?
Both builders and consumers expressed their concern regarding the Government announcement, suggesting that the Government might be “trying to stop cash payments”, “end self-employment” and “get more tax”.
Trusted Payments is endorsed by Government, but the business is completely independent and the Government will not have access to any of the data.
Consumers will be able to pay in cash but they won’t get the £20,000 warranty cover for any cash payment made as part of a project.
Licensing and regulation
Numerous respondents to my social media posts saying that the Government should license and regulate the sector more closely.
Licensing would give tradespeople permission to operate. They would need to meet certain requirements and get a licence before they can legally do the work.
Regulation provides rules governing how tradespeople operate. It would cover standards, conduct, insurance, training, advertising, complaints handling and enforcement.
There are pros and cons to both, Licensing and/or regulation would help with improving consumer safety and quality, ensuring that tradespeople meet minimum competence standards. It would make it easier to identify and penalise the rogue traders. It should give consumers greater confidence and protection and may even improve the reputation of the sector.
However, it could increase costs for tradespeople and those would likely be passed onto consumers. Licensing is only as good as the date it is given, meaning that a trader could walk off site three months later. They could go bankrupt, leaving a consumer with a hole in the ground and a claim against a company that no longer exists. A licence is simply a permission to operate and most existing schemes have no compensation mechanism at all, so require an additional ADR scheme.
A lot of red tape and administration would be involved in the development and running of any licensing or regulation scheme. There would also be an increase in risks to the market. For example, it might be more difficult for new entrants, reduce competition and put prices up and would only be effective if appropriately enforced.
Trusted Payments
The founder of Trusted Payments, James Walker, has spent his career in consumer affairs. He established the complaints platform Resolver and serves on a number of consumer bodies. He says that he has “… been involved in resolving around four million consumer complaints, and home improvement comes up again and again, because the money and the trust move in the wrong order.”
He told me that:
What we have built is deliberately even handed. Homeowners stop paying for work that has not been done. Good tradespeople stop carrying the risk of customers who will not pay, and stop being tarred with the same brush as the small number who give the trade a bad name. Nobody who does honest work loses anything here. That is why the schemes have come on board.
Plus, if there is a rogue, our insurance-based guarantee is there to help, decided on fairly by the Ombudsman.”
A Positive Step
I welcome the development and the Government endorsement of the scheme. I believee that the Government-backed initiative will help tackle longstanding problems, strengthen protection and deliver fairer outcomes for consumers and honest businesses alike. But I would stress that continued enforcement and consumer education are essential to deliver lasting improvements in the market.
Tips for taking on tradespeople
1) Get at least three quotes in writing, not just verbal or rough estimates. Ignore any that are very different to other quotes. Be wary of any builder who can start straight away, as any builder worth their salt will be busy!
2) Ask friends and family for recommendations of companies who have already done work for them. If you don’t know anyone who can make a recommendation, ask traders for details of customers willing to show you their work.
3) TrustMark can provide a list of recommended traders in your area. Each of whom in turn is registered with a professional trade association.
4) Check out reviews of traders. Be careful and cynical of reviews on Facebook, particularly on the builder’s own page. Scams abound on many sites. So, check carefully before making a decision!
5) All professional builders should willingly agree to a written contract which includes an agreed staged payment plan. In addition to the contract, continuous communication throughout the project is the best way to avoid problems arising.
6) Beware of websites that just offer to help you to find tradespeople. Often traders pay to be listed on these websites which generate leads for them and nothing else. If the website exists only to spend your cash but doesn’t help you put things right, avoid it and look for one that will assist at both ends of the project.
7) Check to see if the builder has public liability or employer’s insurance which will give you peace of mind. Consider obtaining a building warranty – a type of insurance – to give you further peace of mind.
8) Take photos before, during and after the work.
9) For some larger projects, both parties can agree that an independent expert will value the work and payments can then be made at various stages during the project.
10) If you are using a home improvement retailer to fit a bedroom, bathroom or kitchen, check that they are a member of the Furniture and Home Improvement Ombudsman before you buy. If they are registered, you will benefit from free and independent dispute resolution if things go wrong.
More consumer rights help and advice
How to build confidence in your home improvement project detailed post on how to prevent issues with tradespeople and how to deal with them if you do.
See Top 20 Tips on how to complain effectively and books if you need more help. I also offer services to consumers and to businesses.
