Retrofit contractors investigated over fraud allegations

Three companies have been named by the Serious Fraud Office (SFO) over alleged fraud linked to a government-backed energy efficiency programme.

The investigation, codenamed Operation Henhouse, centres on claims that JJ Crump, Warmfront Team Ltd and South Coast Insulation Services submitted applications for retrofit measures where “little or no work was undertaken”.

As part of the inquiry into the alleged “sophisticated conspiracy” to defraud energy suppliers of at least £44m in public funds, four individuals have been arrested and searches carried out at residential properties in Cannock, Wolverhampton, Chilworth and Southwell, alongside commercial premises.

One of the retrofit contractors, JJ Crump, has stated that it “completely refutes” the claims.

It said all work delivered under the Energy Company Obligation (ECO4) scheme was undertaken “in good faith” and in line with relevant PAS standards and industry guidance.

In a statement, the company confirmed it is co-operating fully with investigators. “J & J Crump & Son Ltd completely refutes the allegations made in the SFO press release issued on 22 April 2026,” it said. “The SFO conducted a search at our head office. No representatives of JJ Crump have been arrested, and we are assisting the investigation.

“Established for 40 years, JJ Crump has operated in the energy efficiency sector for more than two decades, delivering retrofit measures to homes across the UK. All installations have been completed in good faith and in accordance with PAS requirements.”

The firm added that it would not comment further while the investigation is ongoing.

Of the other organisations named, South Coast Insulation Services entered administration in February, while Warmfront Team Ltd was sold in 2024 and now operates under new ownership unconnected to the matters under investigation, according to the SFO.

The SFO’s action follows mounting scrutiny of government insulation programmes. In late 2025, the Public Accounts Committee called for a formal investigation into the ECO4 scheme and the parallel Great British Insulation Scheme after a National Audit Office report identified a failure rate of 98% in external wall insulation installations.

The report highlighted widespread defects requiring remedial work, including issues with damp and mould. It also pointed to suspected fraudulent activity, with Ofgem estimating that claims for installations may have been falsified in up to 16,500 properties.

SFO director Graham McNulty said the agency is seeking information from industry professionals involved in the schemes. “We are keen to hear from installers and assessors who worked on these contracts and understand what took place,” he said. “Our door is open, and coming forward is the right thing to do.”