Overview

The Domestic Building Works (Consumer Protection) Bill aims to improve consumer protection in England when using builders for domestic building work. It proposes a licensing scheme for builders, including an ombudsman service to resolve disputes and a system for sanctions against those who break the rules.

Description

This bill will establish a licensing scheme for builders undertaking domestic building work in England. The scheme aims to protect consumers who are not professional property developers and promote fair competition.

• Licensing: The Secretary of State will create regulations to license sole traders, partnerships, and companies (including main and sub-contractors), but not employees.
• Definition: The regulations will define "domestic building works" covered by the scheme.
• Requirements: Businesses must obtain a license to undertake covered works. Working without a license will be an offense, punishable by a fine.
• Dispute Resolution: An ombudsman service will be established to resolve disputes between consumers and licensed builders.
• Sanctions: Sanctions will include license revocation and compensation payments to consumers.
• Funding: Licensee fees will fund scheme administration, compensation, and the ombudsman service.
• Parliamentary Approval: Any regulations will need approval from both Houses of Parliament.

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

Government Spending

The bill does not specify exact figures for government spending. However, the costs of establishing and running the licensing body, ombudsman service, and potential compensation payments will be covered by membership fees paid by licensed builders.

Groups Affected

• Consumers (Homeowners): Increased protection from rogue builders through licensing, dispute resolution, and compensation.
• Builders: Required to obtain licenses and comply with regulations. May incur fees for licensing and membership.
• Licensing Body: Responsible for administering the licensing scheme.
• Ombudsman Service: Responsible for resolving disputes between consumers and builders.

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