Government Launches Approved Code Scheme to Tackle Cowboy Builders
What happened
The government has launched two measures aimed at protecting homeowners from cowboy builders: an Approved Code for home improvement traders and a milestone-based payment protection app.
Announced on 28 August 2026 by the Prime Minister, the Approved Code lets traders demonstrate they meet higher standards for customer service, transparency and dispute resolution. The scheme was developed by the Furniture and Home Improvement Ombudsman (FHIO) and is rolling out from September 2026, with full operation expected by December.
Separately, a new payment app built by Trusted Payments holds customer money in escrow and releases it to the builder at agreed project milestones — so homeowners don't pay everything upfront and builders still get paid as work progresses.
The government cited Citizens Advice evidence that more than one in four UK adults who carried out home improvement work in the past 18 months experienced problems.
What this means for tradespeople
The scheme is voluntary — no one is forcing you to join. But that's actually the point: if you're already doing quality work, this is a competitive signal you can use.
Homeowners are increasingly cautious about who they hire. Between Rated People going into liquidation and regular news about rogue traders, trust is harder to earn. An Approved Code badge, combined with a strong set of Google reviews, gives a potential customer two independent reasons to pick you over someone without either.
The milestone payment system could also work in your favour. If you've ever had a customer nervous about paying a deposit, a government-backed escrow option removes that friction — and may help you win jobs against competitors who insist on cash upfront.
What to do about it
- Consider signing up once the scheme is fully live. Details are available from the Furniture and Home Improvement Ombudsman.
- Keep building your Google reviews. The Approved Code is one trust signal, but Google reviews are what homeowners check first — 95% of consumers read reviews before hiring a tradesperson.
- Mention your credentials in your Google Business Profile. If you join the scheme, add it to your profile description alongside other accreditations.
Source: Gov.uk — Government Steps In to Protect Families from Cowboy Builders and Aggressive Bailiffs