The National Federation of Builders (NFB) told BBC Breakfast there are already schemes in place to find trustworthy builders.
Adas Rico Wojtulewicz-Richmond, the NFB’s director of policy, said: “Is this scheme going to stop bad actors operating and ripping people off? I don’t think it will.”
He said a better approach would be for every project to have a “passport” which records all the work done.
“It protects consumers because you can find out which companies are doing a poor job, and it brings up the industry standards,” he said.
The Chartered Trading Standards Institute (CTSI) said the new scheme would clamp down on rogue traders “who take the money and run”, but urged the government to go further to protect vulnerable people from shoddy works and repairs.
John Herriman, CTSI’s chief executive, said government funding schemes like the Warm Homes Plan, external could create opportunities for fraudulent traders.
“CTSI would therefore urge the government to see this as a great first step and to introduce a mandatory licence for tradespeople working in the home repair and maintenance sector, which would make it simpler and cheaper for enforcement agencies – including Trading Standards – to prosecute fraudulent tradespeople,” he said.
BBC News has previously reported on botched insulation jobs carried out through government schemes since 2022.
Major defects have been found in over 30,000 houses linked to the schemes.
The prime minister said rogue tradespeople gave their “decent, hardworking” counterparts a bad name and would be “putting the cowboys out of business”.
Business Secretary Jonathan Reynolds said that, while home improvements can be stressful, “we’re taking action to protect consumers, support reputable traders and make sure people can spend their money with greater confidence and security”.
Shadow business secretary Andrew Griffith said the announcement looks like “the sort of government initiative that risks the unintended consequence of piling more paperwork onto the majority of businesses who already do the right thing”.
He said: “The government would do far better to beef up law enforcement and have tougher sentences for the minority who fraudulently rip off customers. Those who break the rules will keep breaking them regardless of whether there is an app in the way.”
Liberal Democrat business spokesperson Sarah Olney said: “Rogue builders cause real harm and ruin real lives every year. The current system is simply not fit for purpose and this half-baked announcement falls frustratingly short from fixing it.
“A voluntary code for tradespeople completely misses the mark. Rogue operators won’t voluntarily sign up – they will simply keep exploiting families in the shadows.”
