Four arrested in dawn raid over suspected ECO4 home insulation scheme fraud

Energy minister Martin McCluskey said it is appalling that people have allegedly tried to line their pockets with funding intended to help families lower their energy bills and that action is being taken to bring those responsible to justice.

The SFO said it wants installers and assessors who worked on these contracts to contact them at confidential@sfo.go.uk.

The Serious Fraud Office said it is examining a 'sophisticated conspiracy' to fraudulently claim £44m in public money through ECO4.

Four people were arrested during a dawn raid on suspicion of conspiracy to defraud following an investigation into the ECO4 scheme; 100 investigators entered homes and offices across three counties and removed computers, hard drives and crypto assets.

The SFO alleged three businesses were involved in the fraud: JJ Crump of Sheffield, South Coast Insulation Services in Fareham and Cannock-based Warmfront.

The government said it is implementing a find-and-fix programme to help homeowners, with more than 3,000 out of 30,000 affected homes repaired.

In one case in Luton, the dry rot was so extensive that the house has been gutted and is costing more than £250,000 to fix; repairs are being paid for by the installer's insurer.

A National Audit Office report found that 98% of external wall insulation delivered under ECO4 required repairs.

South Coast Insulation Services went into administration in February.

The ECO4 programme began in 2022 and involved the installation of heat pumps, solar panels and insulation in more than 300,000 homes, targeted at elderly or vulnerable people living on low incomes.