Appeal launched after four arrests made in relation to UK government energy efficiency scheme

It is suspected that energy companies were defrauded of at least £44m in this way. The SFO understands that Warmfront was sold in 2024 and now trades under new management not connected to this investigation.

This operation is part of Operation Henhouse, a UK-wide campaign tackling fraud.

The arrests come after the Department for Energy Security and Net Zero (DESNZ) revealed last week that contracts relating to the ECO4 and Great British Insulation Scheme were in the hands of senior fraud officials.

The move was revealed in a response to a report from parliament’s Public Accounts Committee, published in January, which said that “given the likely role of fraud” in poor-quality installations under the schemes, DESNZ should refer the issue to the SFO.

According to the report, Ofgem has estimated that businesses could have fraudulently claimed between £56m and £165m from energy suppliers under the schemes.

More than 30,000 homes that used the two schemes have defective insulation that requires remediation.

Graham McNulty, director of the SFO, 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.

“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.”

Ellie Reeves, solicitor general, said: “This scheme was meant to tackle fuel poverty and improve people’s homes.

“Instead, the Serious Fraud Office is investigating claims £44m in public money was paid to companies that allegedly did little more than submit false invoices for work they failed to carry out.

“I am sickened by those who want to profit off the back of a scheme designed to help vulnerable people, and I’m confident the SFO’s investigation into allegations of substantial fraud will deliver the answers victims and the public deserve.”

The SFO is now appealing for information on Cannock-based Warmfront, Sheffield-based JJ Crump and Fareham-based South Coast Insulation Services in connection with ECO4 projects between 2022 and 2024.