Four suspects have been arrested in a Serious Fraud Office investigation into ECO4 contracts, with prosecutors alleging a sophisticated fraud scheme where little or no work was performed but invoices were fraudulently submitted, potentially costing at least £44 million in public funds.

The targets include Warmfront (Cannock), JJ Crump (Sheffield), and South Coast Insulation Services (Fareham); Warmfront has new management since a 2024 sale and is not connected to the current inquiry.

Solicitor General Ellie Reeves stressed the public interest in uncovering substantial fraud within the program meant to help vulnerable households and vowed accountability.

Homeowners report severe insulation failures under ECO4, with some repairs costly and insurers covering portions, while a government find-and-fix programme has repaired more than 3,000 of about 30,000 affected homes.

The SFO has issued a public appeal for information, inviting witnesses, installers, and assessors involved in ECO4 projects to come forward, offering confidential contact options.

The National Audit Office found that 98% of external wall insulation under ECO4 required repairs, raising questions about programme quality and integrity.

Investigators say the scheme aimed to cut carbon and help households, but substantial fraud is alleged, and authorities seek the truth for victims and the public.

SFO Director Graham McNulty said the scheme's goals included emissions reductions and cost relief for households, yet there are suspicions that some contractors performed minimal work while invoicing for more.

The probe follows MPs’ concerns over ECO4 oversight, with public accounts committee criticism of multiple organisations administering the scheme without strong governance.

Launched in 2022 to install heat pumps, solar panels, and insulation for vulnerable homes, ECO4 involved over 300,000 properties and cost about £4 billion, funded by a levy on energy bills, and is set to be phased out in favor of the Warm Homes Plan.

Energy Minister Martin McCluskey condemned the alleged fraud and pledged to bring those responsible to justice while noting remediation efforts for affected households.

Investigators conducted searches across multiple counties, seized computers and crypto assets, and are reviewing evidence connected to around £44 million in public funds.