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ECO4 Ending 31 December 2026 — Last-Chance Guide & What Replaces It

Last reviewed · 8 minute read · Apply before October 2026 to be safe

ECO4 is the largest single-route source of free home energy upgrades for benefit-eligible UK households, and it has been since 2022. It will not be renewed — the government is replacing the supplier-obligation model with direct grants via the Warm Homes Plan. If you qualify, the window to claim is closing fast.

We're independent — no installer or supplier affiliation. We point you to the official application route first.

What is ECO4?

The Energy Company Obligation requires the largest UK energy suppliers to deliver energy-efficiency measures (insulation, heating upgrades, controls, sometimes solar) to lower-income households. The current phase, ECO4, ran from 1 April 2022 with a target value of £4 billion.

It's not a grant you apply for from gov.uk — it's a regulatory obligation on suppliers, which they meet by contracting installers to deliver measures to eligible homes. From a homeowner's perspective, you apply via your supplier (or an installer the supplier has approved), and the work is fully funded.

The 9-month extension from 31 March 2026 to 31 December 2026 was announced after a Sept 2025 consultation. The extension was needed because suppliers were behind on their cumulative targets after a slow 2024–25 period.

Who's eligible?

ECO4 has two routes to qualify:

Route 1 — "Help to Heat" Group (means-tested benefits)

Receive at least one of these benefits:

  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker's Allowance (JSA)
  • Income Support
  • Universal Credit
  • Pension Credit (Guarantee Credit)
  • Working Tax Credit
  • Child Tax Credit
  • Housing Benefit
  • Industrial Injuries Disablement Benefit, War Pensions Mobility Supplement

Route 2 — Local Authority Flexible Eligibility ("LA Flex")

Even if you don't receive qualifying benefits, your local authority can declare your household eligible if it considers you "vulnerable" or "fuel poor" under its local criteria. Common LA Flex triggers:

  • Household income below ~£31,000 (varies by council).
  • Someone in the household with a long-term health condition aggravated by cold.
  • Property in council tax band A–D with EPC rating D–G.
  • Recent significant change in circumstances (job loss, bereavement).

LA Flex is council-by-council — check your council's website for "ECO Flex" or "Flexible Eligibility Statement." Many councils have referral forms you can complete.

Property requirements (both routes)

  • Property is your main residence (or you have landlord consent if rented).
  • EPC rating D, E, F or G (homes already at C or above are excluded).
  • Property is in Great Britain (England, Scotland, Wales). Northern Ireland has its own scheme — see NISEP.

What ECO4 actually funds

ECO4 is designed for whole-house retrofit, not single measures. Eligible homes typically receive a package:

  • Insulation: loft, cavity wall, solid wall (internal or external), underfloor.
  • Heating upgrades: first-time central heating (for homes without it), replacement of inefficient electric storage heaters, occasional boiler replacement (rare — most boiler replacements aren't ECO4-funded).
  • Heat pumps: air source heat pumps, occasionally ground source.
  • Solar PV: in some packages, particularly where the property has high electricity demand.
  • Heating controls: smart thermostats, TRVs.
  • Draught-proofing and minor improvements.

Typical package value: £5,000–£25,000 per home, fully funded. There's no fixed cap — the supplier and installer determine the optimal cost-effective measures based on the property's starting EPC and the funding available.

How to apply

The process:

  1. Check your eligibility via your energy supplier's website (most have an ECO eligibility tool), or via a local installer's pre-qualification form, or via your council if going the LA Flex route.
  2. Contact an approved installer. Most ECO4 work goes through TrustMark- and PAS 2030/2035-registered installers contracted by the obligated suppliers (British Gas, EDF, E.ON, Octopus, OVO, ScottishPower). Find an installer via TrustMark.
  3. Provide documentation: proof of address, benefit award letters (or LA Flex referral), proof of ownership/tenancy, and EPC if available.
  4. Retrofit assessment: a Retrofit Coordinator (PAS 2035-qualified) surveys the property and proposes a measures package.
  5. Approval and installation: if approved, works are scheduled. You contribute nothing.
  6. Post-works EPC: a new EPC is issued reflecting the improvements.

Typical end-to-end timeline: 8–16 weeks. Longer in autumn/winter peaks.

Critical deadlines

The October 2026 informal cutoff

Suppliers and installers will stop taking new ECO4 applications well before 31 December 2026 — typically when they're confident of meeting their year-end target. Realistic latest application date for completion before the deadline: 1 October 2026. For complex measures (solid wall insulation, heat pumps): 1 August 2026.

If you start the process now (May 2026), you have a comfortable buffer. If you start in September, you may find suppliers no longer accepting applications.

What replaces ECO4 from 1 January 2027

The Warm Homes Plan, published 21 January 2026, confirms there will be no ECO5. The supplier-obligation model is being replaced by:

Warm Homes: Local Grant (WHLG) — primary replacement

  • Council-delivered, up to £30,000 per home.
  • Income tested at £36,000 (more generous than ECO4's typical £31k threshold).
  • EPC D-G properties only (same as ECO4).
  • Live since April 2025 — running parallel to ECO4 through the transition.
  • Full WHLG guide.

Boiler Upgrade Scheme (BUS)

  • £7,500 (£9,000 from July 2026 for oil/LPG homes) for heat pumps.
  • Not means-tested — open to all owner-occupiers.
  • Funded through 2030, £2.7bn envelope.
  • Full BUS guide.

0% VAT on energy-saving materials

  • Until 31 March 2027 (then reverts to 5%).
  • Applies to solar, batteries, heat pumps, insulation.
  • Automatic via your installer's invoice.

Direct loan products (TBC)

The Warm Homes Plan also signals a future low-interest loan product for non-means-tested upgrades. Details and launch date have not been published yet — expected H2 2026.

If you don't qualify for ECO4

ECO4 is narrow — many households on modest incomes don't qualify because they don't claim qualifying benefits or because their council hasn't activated LA Flex. Other routes:

Can you combine ECO4 with BUS?

Yes, but not on the same measure. Two valid combinations:

  1. ECO4 insulation + BUS heat pump. Use ECO4 to fund insulation (loft, cavity, solid wall). Then claim BUS separately for the heat pump install. This is the most common stacked path.
  2. ECO4 heat pump only (no BUS). ECO4 fully funds the heat pump if you're benefit-eligible. You can't double-claim BUS on top.

What you can't do: have ECO4 fund half of a heat pump and BUS fund the other £7,500. One scheme per measure. See our grant stacking guide for the full rules.

Watch out for ECO4 scams (Q3-Q4 2026 surge expected)

As ECO4 winds down, expect a surge in "ECO4 still available! Apply now!" marketing — some legitimate, some not. Common scams:

  • Door-knocking installers claiming to "check ECO eligibility" — never sign anything on the doorstep.
  • Cold calls asking for a "small admin fee" — ECO4 has zero customer contribution; legitimate installers never ask for upfront fees.
  • "Limited slots available — sign today" pressure — ECO4 isn't first-come-first-served at individual property level; high-pressure tactics indicate dodgy operators.
  • Fake "official" letters with gov.uk-style branding — Ofgem and DESNZ never write directly to homeowners about ECO4.

How to verify a legitimate offer:

  1. Check the installer is on the TrustMark register.
  2. Cross-reference the installer with your energy supplier — they should be able to confirm if the installer is in their ECO4 network.
  3. Insist on written confirmation of the obligated supplier funding the work.
  4. Never sign anything on the doorstep — take 48 hours minimum.

Frequently asked questions

I'm on Universal Credit but my home is EPC C — can I still claim?

No. ECO4 specifically targets EPC D–G properties. The logic is that better-rated homes are already energy efficient enough. If you're on benefits but in a C-rated home, you may instead qualify for the Warm Home Discount (£150 winter electricity bill discount).

How do I find out if my council has LA Flex?

Search your council's website for "ECO Flexible Eligibility" or "Flexible Eligibility Statement." Most have a public document and an application form. If you can't find it, call your council's housing or energy team directly.

What if my application is submitted before 31 December 2026 but the install runs into 2027?

Suppliers generally try to complete installs within the scheme year, but multi-measure deep retrofits (especially involving solid wall insulation) can run beyond year-end. Approved applications submitted before October 2026 should complete; applications submitted after October are at supplier discretion.

Is ECO4 the same as the Great British Insulation Scheme (GBIS)?

No. GBIS is a separate, lighter-touch scheme that ran alongside ECO4 for single-measure insulation in EPC D–G Council Tax bands A–D properties. GBIS closed to new applications on 31 March 2026 (final remediation 1 June 2026). ECO4 is the deeper-retrofit scheme.

Can private landlords apply on behalf of tenants?

Yes — with tenant consent. ECO4 covers privately rented properties with EPC D-G and a benefit-eligible tenant. The work is fully funded; the landlord contributes nothing and the property gets upgraded.

What's the £3,000 minimum for solid wall insulation under ECO4?

ECO4 sets minimum "cost-effectiveness" thresholds — the value of measures installed must justify the funding spent. For solid wall insulation, this typically means combining with other measures (heat pump, insulation top-up) to make a £15,000–£25,000 package economic. If solid wall insulation is the only measure being proposed, the funding case has to clear a high bar.

What's happening to ECO funding for households on bills?

From 1 April 2026, the ECO levy was removed from energy bills. The Treasury now funds the obligation directly from general taxation. Saves the typical household around £63/year. This is part of the broader policy-cost shift announced in the November 2025 Autumn Budget.

Sources

Page changelog

  • 19 May 2026 — Initial publication. Reflects the confirmed 31 Dec 2026 end date, ECO charge removed from bills 1 April 2026, no ECO5, WHLG as primary replacement.

Check if you qualify for ECO4 (or its replacements)

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