Four Arrested Over Suspected £44 Million Home Insulation Scheme Fraud on Wednesday
Four people were arrested early on Wednesday morning in connection with a suspected conspiracy to defraud the government’s home insulation scheme. One hundred investigators executed raids across three counties, seizing computers, hard drives, and crypto assets.
The Serious Fraud Office (SFO) is investigating what it describes as a “sophisticated conspiracy” to illicitly claim GBP#44 million in public funds through the Energy Company Obligation 4 (ECO4) programme.
Ross Corrigan, the lead SFO investigator, stated that the alleged criminality exploited a scheme designed to alleviate fuel poverty for vulnerable individuals. The ECO4 programme, launched in 2022 and now closed, focused on installing heat pumps, solar panels, and insulation in over 300,000 homes, primarily targeting low-income, elderly, or vulnerable residents. The scheme, funded by a levy on household energy bills, has cost GBP#4 billion.
The SFO has named three companies in connection with the alleged fraud: JJ Crump of Sheffield, South Coast Insulation Services in Fareham, and Warmfront, based in Cannock. South Coast Insulation Services entered administration in February. The SFO alleges these businesses claimed funds for insulation work on 5,000 properties where no installation occurred.
Sir Geoffrey Clifton-Brown MP, Chair of the Public Accounts Committee, characterised the ECO4 scheme as increasingly resembling a “charlatan’s charter.” He asserted that the substantial alleged fraudulent claims, estimated at GBP#44 million, indicate that previous estimates of fraud within the scheme have been significantly underestimated.
A National Audit Office report found that 98% of external wall insulations delivered under the ECO4 scheme required repairs. Homeowners across the UK have reported properties ruined by poorly installed insulation under ECO4. One case in Luton involved such extensive dry rot that the house required gutting, with repairs exceeding GBP#250,000, covered by the installer’s insurer.
The government states it is implementing a find-and-fix programme, with over 3,000 of 30,000 affected homes repaired. Energy Minister Martin McCluskey condemned the alleged attempts to profit from funds intended to assist families, affirming that action is being taken to bring those responsible to justice.
