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Four people arrested over suspected £44m UK home insulation scam

Four people arrested over suspected £44m UK home insulation scam

Summary

Four people have been arrested in the UK for allegedly taking part in a home insulation scam that may have cost energy companies up to £44 million. The scam involves false invoices for insulation work that was not properly done under a government-funded scheme to help poorer households save energy and money.

Key Facts

  • The Serious Fraud Office (SFO) and National Crime Agency arrested four people in coordinated raids across England.
  • The arrests relate to the Energy Company Obligation 4 (ECO4) scheme, which helps poorer households improve home insulation and heating.
  • The ECO4 scheme is funded by energy companies and aims to reduce carbon emissions and fuel poverty.
  • The scheme ends in December and will be replaced by the Warm Homes Plan, which also supports solar panels and heat pumps.
  • Reports of poor quality work and financial losses in the home insulation sector led MPs to call for an SFO investigation.
  • Authorities searched homes and commercial sites in Staffordshire, Wolverhampton, Hampshire, Nottinghamshire, and Derbyshire.
  • The SFO is asking for information from workers involved in the contracts to understand the full extent of the fraud.
  • Some companies named include Warmfront (now under new management), JJ Crump, and South Coast Insulation Services.
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