The Serious Fraud Office has launched an investigation into suspected large-scale fraud linked to home insulation and heating upgrades under the government’s ECO4 scheme.
The probe centres on three firms – Warmfront Team Ltd, JJ Crump and South Coast Insulation Services – which are alleged to have submitted claims for work that was either partially completed or not carried out at all.
Investigators believe energy companies may have been defrauded of at least £44m through the scheme, which is designed to improve energy efficiency in homes, cut bills and reduce carbon emissions.
The ECO4 programme, part of the UK’s wider energy efficiency drive, is intended to support vulnerable households by funding insulation and heating improvements.
COORDINATED SEARCHES
As part of the investigation, the SFO, working alongside the National Crime Agency, carried out coordinated searches across six locations, including four residential properties in Cannock, Wolverhampton, Chilworth and Southwell, as well as two commercial premises in Cannock and Killamarsh.
Four individuals were arrested on suspicion of conspiracy to defraud.
The SFO has also issued a public appeal for information relating to ECO4 projects carried out by the three companies between 2022 and 2024, urging installers, assessors and others involved to come forward.
Graham McNulty QPM, Director of the Serious Fraud Office, says: “This scheme was designed to reduce carbon emissions, help households cut costs and stay warm – instead in many cases we suspect little or no work was done.
“We are particularly keen to hear from installers and assessors who worked on these contracts and know what really happened. Our door is open, and coming forward is the right thing to do.”
VULNERABLE PEOPLE
Solicitor General Ellie Reeves KC MP adds: “This scheme was meant to tackle fuel poverty and improve people’s homes. Instead, the Serious Fraud Office is investigating claims £44m in public money was paid to companies that allegedly did little more than submit false invoices for work they failed to carry out.
“I am sickened by those who want to profit off the back of a scheme designed to help vulnerable people, and I’m confident the SFO’s investigation into allegations of substantial fraud will deliver the answers victims and the public deserve.”
The investigation forms part of Operation Henhouse, a nationwide initiative targeting fraud.
The SFO said Warmfront Team Ltd was sold in 2024 and now operates under new management not connected to the investigation.
