ECO4 Scheme 2026: Eligibility, Funding and How It Works

What is the ECO4 scheme?

ECO4 (Energy Company Obligation 4) is a UK government-mandated programme that requires large energy suppliers to fund energy efficiency improvements in eligible homes. It is the fourth phase of the ECO programme, which has operated since 2013.

The scheme targets low-income, fuel-poor, and vulnerable households living in energy-inefficient properties. Its primary aim is to raise the EPC rating of qualifying homes by at least two bands, reducing energy bills and improving living conditions.

ECO4 covers a range of measures including insulation, heating system upgrades, and renewable heating installation. The specific measures available depend on what is appropriate for each property, as determined by a certified installer and the scheme rules.

Is ECO4 a government scheme?

ECO4 is mandated by the UK government and regulated by Ofgem. However, it is not directly funded by the government. Instead, the obligation is placed on large energy suppliers, who must fund improvements in eligible homes as a condition of their licence.

There is no central government portal where you apply for ECO4. Instead, approved installers work with energy suppliers to deliver funded measures to qualifying households. The eligibility checker on this page can help you understand whether ECO4 routes may apply to your situation.

When does ECO4 end?

ECO4 is currently scheduled to end on 31 December 2026. The government may announce successor arrangements or further extensions as this date approaches. Eligibility criteria and funding levels may change before the end date, so checking your eligibility sooner rather than later is worthwhile.

Who pays for ECO4 improvements?

ECO4 improvements are funded by obligated energy suppliers as part of their regulatory obligations. Eligible households do not typically pay for the measures installed, though in some cases a small customer contribution may apply for certain measures or property types.

The costs are ultimately spread across all energy bills, as suppliers recover their ECO expenditure through general pricing. However, for qualifying households, the direct benefit of improved energy efficiency typically outweighs this contribution many times over.

Who may qualify for ECO4?

ECO4 eligibility depends on a combination of household circumstances and property factors. You may be considered if:

• You receive one or more qualifying benefits (see below)
• You meet ECO4 Flex criteria set by your local authority
• Your property has a qualifying EPC rating
• Your home would benefit from measures that raise the EPC by at least two bands

Property and EPC requirements

ECO4 targets less energy-efficient properties where improvements can make a meaningful difference:

Having a qualifying EPC rating alone does not automatically make a household eligible. The scheme also considers household circumstances, benefits status, and whether proposed measures would achieve the required EPC uplift.

Qualifying benefits and household circumstances

The standard eligibility route requires receiving one or more of the following benefits:

• Universal Credit
• Pension Credit (Guarantee Credit)
• Income Support
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Child Tax Credit (below income threshold)
• Working Tax Credit (below income threshold)
• Housing Benefit
• Warm Home Discount (core group)

Receiving a qualifying benefit does not automatically guarantee ECO4 funding. The property must also meet the EPC and technical requirements, and a supplier must agree to fund the work. If you do not receive any of these benefits, ECO4 Flex may provide an alternative route.

What measures can ECO4 cover?

ECO4 can fund a range of energy efficiency measures. The specific measures available for any property depend on the assessment, the required EPC uplift, and scheme rules.

Available measures depend on what is technically appropriate for the property and what will contribute to achieving the minimum two-band EPC uplift. A single measure may not be sufficient — ECO4 often delivers packages of improvements.

Boiler replacements and heating upgrades

ECO4 may fund boiler repair or replacement where the existing boiler is broken, condemned, or highly inefficient. However, a boiler replacement alone is not always funded — the scheme aims for a whole-house approach that achieves a minimum two-band EPC improvement.

First-time central heating may also be funded for properties that have never had a central heating system. The type of heating installed depends on what is appropriate for the property and what contributes most effectively to the EPC target.

Insulation measures

Insulation is one of the most commonly delivered ECO4 measures because it provides lasting improvements to a home’s thermal performance. Loft insulation, cavity wall insulation, solid wall insulation, and room-in-roof insulation may all be available depending on property type and existing provision.

For more detail on insulation-specific funding, see our insulation grants UK guide.

Heat pumps and renewable heating

ECO4 may fund air-source heat pumps as part of a package of improvements, particularly for off-gas properties or where a heat pump contributes significantly to the EPC uplift target. Ground-source heat pumps are less commonly delivered through ECO4 due to higher costs.

For more on heat pump funding routes, see our guides on heat pump grants UK and ground source heat pump grants.

What happens after an eligibility check?

After completing the eligibility checker, you may choose to request contact from an approved installer who can:

• Verify your household eligibility against current ECO4 criteria
• Arrange a technical survey of your property
• Identify which measures are suitable and would achieve the required EPC uplift
• Submit an application to an energy supplier for funding
• Schedule installation if the application is approved

You are under no obligation at any stage. The initial eligibility check is free.

How long does ECO4 approval take?

Timescales vary depending on the installer, energy supplier, and complexity of the measures. The process from initial enquiry to installation can take several weeks to several months. Factors that affect timing include property survey scheduling, supplier approval queues, measure complexity, and seasonal demand. There is no fixed government timeline, and installers should not guarantee specific dates at the enquiry stage.

Can landlords and private tenants apply?

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