UK SFO arrests four in £44m ECO4 insulation probe

UK enforcement agencies said four people were arrested on Wednesday in connection with a suspected £44 million home insulation fraud linked to a government-mandated energy efficiency programme. Officials said the Serious Fraud Office (SFO) and the National Crime Agency (NCA) carried out coordinated dawn raids across England as part of an investigation into alleged conspiracy to defraud involving the Energy Company Obligation 4 (ECO4) scheme.

 

Officials said the inquiry focuses on claims that companies involved in ECO4 projects submitted invoices that did not reflect the work delivered. The allegations include billing for installations that were not carried out, as well as work that was completed to a poor standard. ECO4 is designed to support poorer households with upgrades such as insulation and heating improvements, with energy companies required to fund the measures.

 

The SFO said it is seeking information about three firms in relation to ECO4 activity between 2022 and 2024: Staffordshire-based Warmfront, Sheffield-based JJ Crump, and Hampshire-based South Coast Insulation Services. Officials did not provide further detail on the individuals arrested, beyond confirming there were four arrests and that they were made across England.

 

Authorities said searches were conducted at residential addresses in Cannock, Wolverhampton, Chilworth, and Southwell. Officials also said two commercial premises were searched, located in Cannock and Killamarsh. The arrests and searches were described as coordinated actions involving both the SFO and the NCA.

 

The investigation comes as ECO4 approaches its scheduled end date in December, according to officials. The scheme requires energy companies to pay for home efficiency improvements, and it has been the subject of scrutiny over how it is overseen. The Public Accounts Committee previously criticised ECO4 for having oversight spread across multiple organisations, officials said.

 

Political pressure to examine the sector intensified earlier this year. In January, Members of Parliament called for the SFO to investigate the home insulation industry after numerous reports of substandard work and significant financial losses for households, officials said. The current case is tied to allegations within ECO4, and officials have not said whether the probe extends beyond the firms and time period identified.

 

Uncertainties remain around the scope of the suspected misconduct and what enforcement steps may follow. Officials have not disclosed the identities of those arrested, any potential charges, or how much of the suspected £44 million relates to each firm or project. Authorities said the investigation is ongoing.