UK Government Launches Mandatory Bailiff Regulation and 'Trusted Payments' Scheme for Home Renovations

Key points

• A new 'Approved Code' scheme for home improvement tradespeople launches next month, requiring adherence to customer service and dispute resolution standards.
• The 'Trusted Payments' app, launching next week, holds customer funds in escrow, releasing payments only upon completion of specific project milestones.
• Private bailiffs in England and Wales must now be accredited by the Enforcement Conduct Board (ECB) to maintain their trading licences.
• The ECB will gain the power to enforce binding rules and revoke licences of non-compliant firms, though it will not have the power to issue fines.
• Consumers facing enforcement action will gain access to an independent complaints process regarding bailiff conduct.
• A 2024 survey for the Competition and Markets Authority estimated that consumers lost over £10bn due to unfair practices in home and garden maintenance services.

Background

The government has previously struggled with delays in regulating the bailiff industry. In June 2025, the Ministry of Justice announced plans for mandatory legislation, but progress stalled, leading to criticism from industry bodies and consumer advocates like Martin Lewis. The current announcement follows a series of 'everyday fixes' aimed at cost-of-living pressures, including previous actions against subscription traps and fake discounts. The new measures are part of a broader effort to strengthen consumer protections across various sectors.

How outlets are covering it

The government, led by Prime Minister Andy Burnham and Business Secretary Jonathan Reynolds, frames these measures as essential for protecting vulnerable consumers and supporting reputable traders. However, opposition and industry groups are skeptical. The National Federation of Builders argues that voluntary schemes will not stop rogue operators, suggesting a 'passport' system for all projects instead. Shadow business secretary Andrew Griffith criticized the move as adding unnecessary paperwork to legitimate businesses, advocating for tougher law enforcement and sentencing for fraudsters. Liberal Democrat spokesperson Sarah Olney described the voluntary code as 'half-baked,' noting that rogue operators will simply avoid signing up. Conversely, Martin Lewis of MoneySavingExpert.com welcomed the mandatory bailiff regulation as a 'genuine step forward,' emphasizing the vulnerability of those facing debt enforcement.

Why it matters

These changes directly impact millions of consumers who rely on home improvement services and those facing debt enforcement. The 'Trusted Payments' system could significantly reduce financial losses from unfinished work and builder disappearances. Mandatory bailiff regulation aims to curb aggressive and unfair debt collection practices, which disproportionately affect vulnerable households. The success of these measures will determine whether consumer confidence in these sectors improves or if regulatory gaps persist.

What to watch

The 'Trusted Payments' app is set to launch next week, with the 'Approved Code' scheme fully implemented by December. The new bailiff regulations are expected to take full effect next year. The government will also review how Trading Standards collaborates with regulators to prevent consumers from being passed between agencies. The ECB will begin enforcing its new binding rules, and the independent complaints process will be operational for consumers dealing with bailiffs.