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The Guardian World1 min read
Four people arrested over suspected £44m UK home insulation scam
TL;DR
Four individuals have been arrested by the UK's Serious Fraud Office over a suspected £44 million home insulation scam targeting energy companies. The arrests were part of a coordinated operation linked to a government-mandated support scheme for energy efficiency upgrades.
Key points
- Four people arrested in a suspected £44m home insulation scam
- Arrests made by the UK's Serious Fraud Office and National Crime Agency
- Investigation linked to the energy company obligation 4 scheme
The UK’s Serious Fraud Office has arrested four people on suspicion of a home insulation scam that may have cost energy companies as much as £44m.
The SFO and the National Crime Agency said on Wednesday the unnamed people were arrested in coordinated dawn raids across England on suspicion of conspiracy to defraud.
The investigation relates to government-mandated support for poorer households to receive upgrades to insulation and heating that could keep their homes warmer, save them money and reduce carbon emissions.
The government mandates that energy companies pay for the scheme, known as the energy company obligation 4 (ECO4). However, it will end in December to be replaced by the warm homes plan, which also funds solar panels and heat pumps.
The arrests came after MPs in January called for the SFO to investigate the home insulation sector amid thousands of reports of households being blighted by disastrous works and large financial costs. Parliament’s public accounts committee criticised the fact that the ECO4 scheme was operated by several different organisations without strong oversight.
Ellie Reeves, the government’s solicitor general, said the SFO was looking at “companies that allegedly did little more than submit false invoices for work they failed to carry out”.
The SFO said it was appealing for information on Staffordshire-based Warmfront, Sheffield-based JJ Crump and Hampshire-based South Coast Insulation Services in connection with ECO4 projects from 2022 to 2024. The SFO said Warmfront was sold in 2024 and now traded under new management not connected to the investigation.
The agencies said they searched homes in Cannock in Staffordshire, Wolverhampton, Chilworth in Hampshire, and Southwell in Nottinghamshire. Two commercial sites were also searched at Cannock and Killamarsh in north-east Derbyshire.
Graham McNulty, the SFO’s director, said: “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.”
Q&A
What is the £44 million home insulation scam in the UK?
The scam involves fraudulent activities related to the government's energy company obligation scheme, which aimed to support home insulation for poorer households.
Who was arrested in the UK home insulation fraud case?
Four unnamed individuals were arrested during coordinated dawn raids across England by the Serious Fraud Office and the National Crime Agency.
What is the energy company obligation 4 (ECO4) scheme?
ECO4 is a government-mandated scheme requiring energy companies to fund insulation and heating upgrades for low-income households, aimed at reducing energy costs and carbon emissions.
