Overview

This bill aims to improve consumer protection in England for domestic building works by introducing a licensing scheme for builders. The scheme will help protect consumers from rogue traders and promote fair competition amongst reputable builders.

Description

The Domestic Building Works (Consumer Protection) Bill proposes a licensing scheme for builders undertaking domestic building work in England. This scheme would cover sole traders, partnerships, and companies, including both main contractors and subcontractors, but not individual employees. The bill defines the scope of "domestic building works" and outlines the licensing requirements. The scheme will include:

• Licensing Requirements: Businesses will need a license to carry out domestic building work.
• Offences and Penalties: Working without a license will be a criminal offense, punishable by fines.
• Dispute Resolution: An ombudsman service will be established to help resolve disputes between consumers and licensed builders.
• Sanctions: Breaching licensing conditions could result in license revocation.
• Compensation: The bill allows for consumer compensation in certain cases.
• Licensing Body: A body will be established to administer the scheme.
• Funding: Licensees will pay fees to cover the scheme's administration costs, including compensation and the ombudsman service.

The bill will be enacted via statutory instrument and must be approved by both Houses of Parliament. The Act will apply to England and Wales only, 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, the scheme will be funded through membership fees paid by licensed builders. The government's financial involvement may include the initial setup costs for the licensing body and ombudsman service. Further costs may be incurred in the enforcement of the act.

Groups Affected

• Consumers (Homeowners): Will benefit from increased protection against unqualified or dishonest builders.
• Builders: Will be subject to licensing requirements and fees. Reputable builders may benefit from increased consumer trust and reduced unfair competition.
• Licensing Body and Ombudsman: Will be established to administer the scheme and resolve disputes.

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