// BBC BUSINESS NEWS — FINANZA
'Cowboy builders' targeted in new government clampdown
The prime minister said rogue builders gave "decent, hardworking" traders a bad name [file pic]
People carrying out home renovations will gain greater protections against "cowboy builders" through a new database of trusted traders and a payment system offering more safeguards, the government has said.
Traders signing up to the scheme launching next month will need to demonstrate certain standards of customer service, transparency and dispute resolution.
Prime Minister Andy Burnham said unscrupulous tradespeople "leave families with months of stress" as well as unfinished work.
The National Federation of Builders said the changes would not stop rogue operators while the Tories suggested there would be added paperwork for firms already operating legitimately.
Citizens Advice has said home renovations are one of its biggest sources of consumer complaints.
The government said more than a quarter of people who carried out home improvements in the past 18 months have experienced problems, such as builders disappearing after upfront payments were made.
It cited a survey carried out for the Competition and Markets Authority, external suggesting customers lost more £10bn in 2024 on home and garden maintenance services due to losses, overpriced costs or unfair practices by traders.
BBC News has previously reported on "bait-and-switch" locksmith scams, where customers were given an initial cheap quote before hidden charges and unnecessary work were added.
Under the new traders' scheme, customers' money will be held in an account and released in parts after certain milestones in projects are completed.