The Insolvency Service has arrested four people on suspicion of defrauding the government’s ECO4 energy efficiency scheme, with losses estimated at £44m. Planning, Building & Construction Today reports that the arrests took place on Wednesday, with suspects from the West Midlands. MSN puts the fraud figure at £44m, though officials have not confirmed the exact sum. The investigation is ongoing, and no charges have been filed yet.
What is the ECO4 scheme?
The Energy Company Obligation (ECO4) is a government programme that obliges the UK’s largest energy suppliers to fund energy efficiency improvements in low-income and fuel-poor households. It covers loft insulation, cavity wall insulation, solid wall insulation, boiler replacements, heat pumps, and sometimes glazing. The scheme runs until March 2026 and is targeted at households with an EPC rating of D, E, F, or G, and an income below £31,000. For a typical 3-bed semi, a full insulation package can cost the supplier up to £10,000, but the household pays nothing. The scheme is separate from the Boiler Upgrade Scheme, which is open to all homeowners.
Who qualifies – and who doesn’t
ECO4 eligibility is means-tested. You qualify if your household income is under £31,000 and your property has an EPC rating of D or below. Some local authorities also run their own eligibility schemes under the same framework. The catch is that the scheme has been plagued by reports of rogue installers and fraudulent claims. The £44m figure cited by MSN suggests that a small number of criminals have exploited the scheme’s complexity. But the vast majority of installations are legitimate. If you are eligible, the scheme is still open and worth pursuing.
What it means for a typical 3-bed semi
For a household that qualifies, ECO4 can cover the full cost of cavity wall insulation (around £2,000), loft insulation (£500–£1,000), and a new boiler or heat pump (up to £7,500). That could lift a home from an EPC band D to band C, saving around £300–£400 a year on energy bills. But you must use a TrustMark registered installer who is on the official ECO4 framework. Do not accept a cold call or a door-to-door offer. Always verify the installer’s credentials on the TrustMark website or through the Energy Saving Trust.
How to protect yourself from fraud
The arrests are a reminder that fraudsters are active. Here is what to do: never pay upfront for ECO4 work – it is fully funded. Check that the installer is on the official ECO4 list published by each energy supplier. Ask for a detailed quote before work starts. And if you suspect fraud, report it to the Insolvency Service or Action Fraud. The Energy Ombudsman can also help if you have a complaint about a completed installation.
What happens next
The investigation is ongoing. The four arrested individuals have been released on bail pending further enquiries. The Insolvency Service has not said whether any properties have been repossessed or whether the fraud involved fabricated installations. For homeowners, the key message is that the scheme itself is not under threat. The government has confirmed that ECO4 will continue until March 2026. But if you have already had work done under ECO4 and are worried about its quality, you can request a free inspection from your energy supplier. For those considering applying, the best next step is to contact your energy supplier directly and ask about their ECO4 programme.
Frequently Asked Questions
Yes, the scheme remains open and operational. The arrests relate to alleged fraudulent claims, not to the scheme itself. Homeowners who are eligible can still apply through their energy supplier.
Always use a TrustMark registered installer. You can check the TrustMark website or ask your energy supplier for their approved list. Never pay upfront for ECO4 work.
Report it to Action Fraud on 0300 123 2040 or via their website. You can also contact the Insolvency Service or the Energy Ombudsman if you have a complaint about completed work.
