Overview

This bill aims to improve consumer protection in England for those commissioning domestic building works. It proposes a licensing scheme for builders, an ombudsman service to resolve disputes, and penalties for unlicensed work, ultimately aiming to protect consumers and promote fair competition within the industry.

Description

The Domestic Building Works (Consumer Protection) Bill seeks to establish a licensing scheme for builders carrying out domestic building work in England. This scheme will cover sole traders, partnerships, and companies, including both primary contractors and subcontractors, but will exclude employees.

Key Aspects:

• Licensing: The Secretary of State will create regulations defining "domestic building works" and setting licensing requirements. Businesses undertaking such work will need a license.
• Offences and Penalties: The bill introduces penalties (fines) for unlicensed work.
• Ombudsman Service: An ombudsman service will be established to handle disputes between consumers and licensed builders.
• Sanctions: The bill allows for sanctions for breaches of licensing conditions, including license revocation.
• Compensation: Provisions for consumer compensation are included.
• Licensing Body: A licensing body will administer the scheme.
• Funding: Licensees will pay membership fees to fund the scheme, including compensation and the ombudsman service.
• Parliamentary Approval: Regulations will need approval from both Houses of Parliament.

The bill applies only to England and Wales, and its commencement date will be set by the Secretary of State.

Government Spending

The bill doesn't specify exact figures for government spending. However, it will incur costs associated with establishing and running the licensing scheme, the ombudsman service, and related administration. Funding will be primarily derived from licensing fees paid by builders.

Groups Affected

• Consumers (Homeowners): Increased protection against rogue builders and easier access to dispute resolution.
• Builders (Businesses): Increased regulation, compliance costs associated with licensing and membership fees, potential for improved reputation and market fairness.
• Licensing Body: Responsible for administering the scheme and managing the process of licensing and enforcement.
• Ombudsman Service: Will be responsible for handling complaints and resolving disputes.

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