Dangerous halogen down lighter in Bathroom

Got a call out to faulty lighting in Killiney, MCB kept tripping out. On investigating I quickly discovered it was being caused by the bathroom down lighters. On further investigating I discovered this (see photo). I removed the faulty lighting and replace original lamp with an LED which does not generate as much heat.

The customer was lucky that the house did not actually catch fire. The joist (photo right) was badly scorched.