The Serious Fraud Office has launched a major fraud investigation into three companies over suspected false claims linked to government-backed home heating and insulation works valued at at least £44m.
Warmfront, JJ Crump and South Coast Insulation Services are under investigation over allegations that they conspired to exploit the Energy Company Obligation 4 (ECO4) by submitting claims for work that was either partially completed or not carried out at all.
ECO4 is a central government initiative aimed at improving energy efficiency in homes, reducing fuel poverty and lowering carbon emissions. Investigators from the SFO, working alongside the National Crime Agency, arrested four individuals on suspicion of conspiracy to defraud during coordinated searches at six locations across the UK.
Searches were carried out at four residential properties in Cannock, Wolverhampton, Chilworth and Southwell, as well as at commercial premises in Cannock and Killamarsh. The investigation is now progressing with a public appeal for information relating to ECO4 projects undertaken between 2022 and 2024 by the three companies involved.
SFO director Graham McNulty said the scheme was intended to support households by improving heating efficiency and reducing energy costs, but investigators believe that in some instances little or no work was completed. He said the agency is particularly interested in hearing from installers and assessors who were involved in the contracts.
The case forms part of Operation Henhouse, a UK-wide initiative targeting fraud. The SFO added that Warmfront was sold in 2024 and is now operating under new ownership, which is not connected to the investigation.
