Energy scandal as four people arrested in £44million home insulation fraud probe

Patrick O'Donnell
Wed, 22 Apr 2026 18:48:25 +0000

The Serious Fraud Office has detained four individuals and conducted searches at six properties across Britain as part of an investigation into suspected fraud exceeding £44million linked to a Government programme aimed at addressing fuel poverty.

Earlier today, the agency announced the operation, revealing that the alleged scheme targeted the Energy Company Obligation 4 (ECO4) initiative, which was established to help households improve energy efficiency and reduce heating bills.

The investigation centres on claims that public funds were obtained through fraudulent submissions for insulation and energy-saving work that was either never carried out or only partially completed.

Three firms are at the centre of the Seruous Fraud Office's inquiry: Warmfront, JJ Crump and South Coast Insulation Services.

Investigators allege these companies lodged claims for energy efficiency work between 2022 and 2024 despite little or no actual installation taking place.

Warmfront, which operated from Cannock in the Midlands, changed hands in 2024 and its current owners have no connection to the probe, according to the Seri.

South Coast Insulation Services has ceased trading permanently, while JJ Crump, headquartered in Sheffield, has not responded to requests for comment regarding the allegations.

Graham McNulty, the Serious Fraud Office's director, emphasised the agency's appeal for witnesses to come forward.

He 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.

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"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."

Solicitor General Ellie Reeves added: "I am sickened by those who want to profit off the back of a scheme designed to help vulnerable people."

The ECO4 scheme, which launched in July 2022, requires energy suppliers to assist households in cutting their energy consumption and lowering heating expenses as part of the broader Energy Company Obligation programme.

Ms Reeves noted that the investigation concerns allegations that £44million in public money was paid to firms that purportedly submitted false invoices for work they never completed.

The arrests and searches form part of Operation Henhouse, a nationwide initiative targeting fraud across the United Kingdom.