It will most likely throw up problems in the future, namely damp patches at the corners where internal wall meets external wall as well as at the floor area and as well on lintels and sills. Go for external insulation, if this is not viable fill the walls with beads or other insulation material and put an aerated cladding on the outer walls to keep them dry.
A plumber might have some experience in the building trade, but better ask a civil engeneer how to calculate an " e-value" (the energy demand of the structure. The SEI home page will give some hints, but as it seems at the moment there is still no sign of an agreement at the departments how to do the energy audit of a home. I fear the worst, i.e. just collecting and showing the old energy bills.
For insulation advise check the previous posts on the issue.