Will Scholfield, Engineer
30 May : Updated 23 Jan ● 5 min read
What is the ECO4 scheme? What’s included and who is eligible?
Save money with free energy efficiency upgrades.
The UK Government launched the Energy Company Obligation (ECO4) scheme in April 2022, which runs until March 31st 2026. This initiative aims to increase energy-efficiency measures and heating in vulnerable households, and to support a greener future with funding from energy companies.
Key takeaways
🛠️ The Government's latest ECO4 update (Updated 22/01/26)
🛠️ How much funding can you apply for?
🛠️ What does the ECO4 grant cover?
🛠️ How to apply for an ECO4 grant?
Quick summary of the ECO4 scheme.
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ECO4 is designed to tackle fuel poverty in vulnerable and low-income households, while reducing carbon emissions.
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Eligible households can receive up to £10,000 in funding for a range of products and measures, including insulation, heating system upgrades, solar pv, and boilers.
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If your household is not classed as ‘eligible’, you can apply to your local council under ECO4 Flex.
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The ECO4 scheme comes to an end on March 31st 2026.
What is the ECO4 scheme?
Initially launched in 2013, the original Energy Company Obligation (ECO) scheme was designed to hold energy suppliers accountable for supporting vulnerable and low-income households. It aimed to achieve new minimum energy-efficiency standards for homes while reducing energy bills and carbon emissions.
The scheme aimed to improve multiple aspects of a home's efficiency, so homes previously rated D or E would hopefully become C. And homes that were previously rated F or G would be upgraded to D.
As well as helping people to pay for crucial property works, the scheme also supports the Government's commitment to reducing the nation's carbon emissions and net-zero targets.
The Government's latest ECO4 update
(Updated 22/01/2026)
Following January’s announcement, the ECO4 scheme is scheduled to end on the 31st March, 2026 – meaning all proposed measures must be installed by this date. The Government is expected to replace ECO4 with its Warm Homes Plan, and welcomes £13.2bn in funding.
All households eligible for ECO4 must be low income or receive specific benefits (listed below), and live in a home with an EPC certificate of D, E, F, or G. However, ECO4 Flex is still available for local councils to use at their discretion, if a household does not meet the standard criteria.
Measures include free loft, cavity, or solid wall insulation, heat pumps, and replacement boilers. Plus, solar PV for homes with electric heating systems.
Top tip: If your household is eligible, we recommend applying for funding as soon as possible. Allocation is on a first-come, first-served basis and is becoming increasingly competitive.
What is ECO4 Flex?
ECO4 Flex, also referred to as the ECO4 Flex scheme, LA Flex scheme, and Local Authority Flexible Energy, refers to a local council's referral mechanism that allows them to broaden the eligibility criteria for the ECO4 scheme and tailor it to their specific area.
Under the LA Flex scheme, a participating local authority can refer private tenure households that it considers to be living in fuel poverty, on a low income, and vulnerable to the point of living in a cold home. While optional, it allows suppliers to meet up to 50% of their ECO obligation.
If a local authority wants to provide ECO4 funding through the Flex scheme, it must publish a statement of intent expressing its desire to participate and its willingness to comply with the relevant rules.
Please note that local authorities are responsible for determining eligible households and may delegate this power to other councils.
Who is eligible for ECO4?
Since the ECO4 scheme is not a grant, the participating energy companies may provide varying levels of support. Because of this, we highly recommend that you shop around for the deal that best suits your home and needs.
To benefit from ECO4, your home must have an energy performance certificate (EPC) rating of D-G, and you must:
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Own your home or,
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Have permission from your landlord, social housing provider or management company.
You are also eligible for support if you live in private domestic premises and are a Help To Heat Group (HTHG) member. Please note that to become a member, you must receive one of the following benefits and satisfy the relevant income requirements.
The following benefits qualify for ECO4 funding:
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Child Benefit – dependent on income
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Child Tax Credits
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Housing Benefit
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Income Support
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Income-based Jobseeker’s Allowance
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Income-related Employment and Support Allowance
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Pension Credit Guarantee Credit
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Pension Credit Savings Credit
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Working Tax Credit
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Warm Home Discount Scheme
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Universal Credit
| Number of children | Single claimant | Member of a couple |
| 1 | £19,900 | £27,500 |
| 2 | £24,800 | £32,300 |
| 3 | £29,600 | £37,200 |
| 4+ | £34,500 | £42,000 |
The following benefits do not qualify for ECO4 funding:
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Armed Forces Independence Payment
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Attendance Allowance
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Carer's Allowance
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Constant Attendance Allowance
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Disability Living Allowance (DLA)
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Industrial Injuries Disablement Benefit
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Personal Independence Payment
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Severe Disablement Allowance
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Standard State Pension
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War Pensions Mobility Supplement
To check your eligibility, visit the Government’s energy grant calculator.
How much funding can you apply for under the ECO4 scheme?
You can access up to £10,000 in funding to increase your home's energy efficiency rating.
What does the ECO4 grant cover?
The scheme covers a range of energy efficiency improvements to suit most homes, including:
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Insulation: Loft, room-in-roof, solid wall (internal or external), cavity wall, and underfloor insulation
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Heating system upgrades: Air Source Heat Pumps, high heat retention electric storage heaters, first-time central heating systems, district heating connections, and smart heating controls and thermostats
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Renewable energy: Solar photovoltaic (PV) panels for homes with an electric central heating system
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Boiler repairs/replacements: A limited number of boilers can be repaired or replaced.
How to apply for an ECO4 grant?
To apply, start by contacting your local council to see if they're participating or contact energy suppliers directly. You can find more information on energy suppliers and their contact details, on the Ofgem website.
Top tip: You can receive support from any provider, not just your current energy supplier.
Don't qualify for ECO4? BOXT can help you to find new ways of improving your home's efficiency.
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The latest boiler grants – covering information about the Boiler Upgrade and Warmer Homes Scotland schemes
FAQs
Who qualifies
What's included
Costs
