Arfon MP Hywel Williams has warned that homeowners affected by the cavity wall insulation scheme must be compensated, ahead of an anticipated further hike in energy prices.

The Government-backed scheme was free energy-saving initiative which would save consumers about £250 a year.

However, several households are now suffering with debilitating financial and health implications of incorrectly and unsuitably installed cavity wall insulation, carried out by unscrupulous ‘cowboy’ firms who have since gone bust.

Mr Williams said: “Those targeted were mainly older people, those with disabilities and those on low incomes, although given the obvious hard sell, many others took advantage of the supposedly energy-saving scheme, including many in my constituency.

“Several years on from when I first brought this issue to the attention of the UK government, some of my constituents are still living with the consequences; damp homes, mould, flaking render and condensation.

“They have exhausted all avenues of redress, with little or no recognition from government of the seriousness of the issue, whilst battling a toothless industry guarantee scheme.

“Successive governments have advocated unpoliced and unregulated cavity wall insulation schemes in pursuit of carbon reduction targets at the expense of unwitting homeowners.

“The government must urgently compensate homeowners and resolve problems caused by faulty insulation.

“Their support must be directed at those requiring the retrofitting of their homes, regulating contractors and ensuring new homes are planned and built with energy saving, green measures that don’t leave homeowners out of pocket.”