Energy Company Obligation (ECO) Scheme

Last reviewed: 03 November 2026

If your home is difficult to heat or your energy bills are high, you may be able to get help with improvements such as insulation or heating upgrades. The Energy Company Obligation (ECO) is a government scheme that requires medium and large energy suppliers to fund energy-efficiency improvements, such as insulation and heating upgrades, for eligible households. It is designed to help reduce energy use and tackle fuel poverty.

The current phase, ECO4, runs until 31 December 2026. ECO is not a grant scheme in the usual sense. Energy suppliers decide which measures they fund and how much they contribute, so you may be asked to pay towards the cost, and being eligible does not guarantee that anything will be installed.

This guide explains how ECO works, who may qualify for ECO4, how to apply, what happened to the related Great British Insulation Scheme, and what other energy-efficiency support is available as ECO4 comes to an end.

How does ECO work?

ECO places a legal obligation on energy suppliers. Under ECO4, the Home Heating Cost Reduction Obligation applies to medium and large suppliers, and each supplier’s target is based on its share of the domestic gas and electricity market. To meet that target, suppliers pay for approved measures that reduce the energy a household uses, such as installing insulation or upgrading a heating system.

In practice, this means the money does not come to you directly. A supplier works with an installer, an assessor confirms what your home needs, and the installer carries out the work. The measures that suit your home are decided by a retrofit assessment, rather than by you choosing from a list.

Because suppliers have flexibility over how they meet their targets, the help you are offered can differ between suppliers and between areas. That is one reason it is worth asking more than one obligated supplier what they can offer.

A short timeline of ECO and related support

What is ECO4?

ECO4 is the fourth phase of ECO. According to Ofgem, it applies to measures installed from 1 April 2022 and runs until 31 December 2026, following a nine-month extension. Its focus is on low-income and vulnerable households, and on homes that need energy-efficiency improvements. Installations under local authority Flex must be completed by 31 December 2026, so it is worth acting early.

ECO4 covers Great Britain. If you live in Northern Ireland, check NI Direct for the support available there.

Who is eligible for ECO4?

You may qualify for ECO4 if you own your home or rent it with your landlord’s permission and meet the scheme’s eligibility criteria. 

According to Ofgem, you could be eligible if you receive at least one of the following benefits:

• Child Benefit
• Pension Guarantee Credit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Income Support
• Universal Credit
• Housing Benefit
• Pension Credit Savings Credit

If you receive Child Benefit, your annual income must also be at or below a limit based on the number of children in your household:

A qualifying child is under 16, or under 20 if they are in approved education or training. A self-declaration alone is not enough to prove you receive Child Benefit, so you will need other evidence.

Your home also needs to benefit from improvements. GOV.UK says that if you own your home, it must have an Energy Performance Certificate (EPC) rating of D, E, F or G. Private renters need a rating of E, F or G and their landlord’s permission, and social housing tenants may be eligible if their home is rated E, F or G. Ofgem’s guidance for local authorities assesses homes by Standard Assessment Procedure (SAP) band, which your installer checks, and one Flex route requires owner-occupied homes to be in band E to G.

You can look up your property’s EPC using the GOV.UK service to find an energy certificate for homes in England, Wales and Northern Ireland.

Why you might not qualify

Meeting one of the eligibility requirements does not guarantee that you will receive support. You may not qualify if:

• You do not receive any of the qualifying benefits and are not referred through ECO4 Flex.
• Your home already has a high EPC rating, so it may not need further improvements.
• You rent your home and your landlord has not given permission.
• Your local authority does not take part in ECO4 Flex.
• The supplier or installer finds that the measures you are asking for are not suitable for your property.

If any of these apply to you, you may still be able to get help through one of the other schemes later in this guide.

What is ECO4 Flex?

Households that do not receive one of the benefits above may still qualify through ECO4 Flex, where a local authority or energy supplier refers them. You could be eligible if you live in a property that needs upgrades and either:

• have a combined gross annual household income under £31,000, or
• someone in your household has a cardiovascular condition, respiratory disease, limited mobility or immunosuppression that is made worse by living in a cold home.

Energy suppliers can also refer households that are in debt for more than 13 weeks. For prepayment meter customers, a supplier can refer you if you have self-disconnected, or received discretionary or friendly credit, within the last 13 weeks.

Not every local authority takes part, so check with yours. Some allow you to refer yourself.

What does ECO4 cover?

Depending on your home and the assessment, ECO4 may help fund improvements such as loft or cavity wall insulation, boiler repairs or replacement, and other heating upgrades. The assessor will identify which measures are suitable for your property, so the options available will vary from home to home.

GOV.UK says there are quality issues with some solid wall insulation fitted through government schemes. If you had internal or external wall insulation fitted under ECO4 since April 2022, or under the Great British Insulation Scheme, Ofgem is sending letters to affected properties. Properties with external wall insulation will be offered a home check, and you should not be asked to pay for any fix. Read the government’s guidance on what to do if you have poor quality wall insulation or contact Ofgem.

How can you apply for ECO4?

There is no central application. A typical route looks like this:

1. Check your eligibility. Make a note of the benefits you receive and find your home’s EPC rating.
2. Contact a supplier or your council. You can contact any energy supplier that is obligated under the scheme, even if it is not your own supplier. You can also ask your local authority whether it takes part in ECO4 Flex.
3. Have your home assessed. The measures that would benefit your home are determined by a retrofit assessment.
4. Review the contract. Only agree to work once you have received a contract, and check whether you are being asked to contribute towards the cost.
5. Have the work installed. Installers under ECO must be TrustMark accredited and have a registration number.

Questions to ask before you agree to any work

Before agreeing to any improvements, make sure you understand what is included, what you may have to pay and who is responsible if something goes wrong. Ask the installer:

• Which supplier is funding the work, and which installer will carry it out?
• What is the installer’s TrustMark registration number?
• Exactly which measures are included, and why are they right for my home?
• Will I need to contribute towards the cost, and if so, how much?
• Who is the guarantor, and what guarantee will I receive?
• What happens if the work is faulty or needs repairing?
• How long will the work take, and what disruption should I expect?

If an installer contacts you without you asking, check the offer with your local council or the supplier the installer says it represents. You do not have to agree to, or sign a contract for, any work you do not consider suitable for your home.

What if something goes wrong?

If you are unhappy with work carried out under ECO4, discuss the problem with the installer first, because your contract is usually with them. Check your paperwork for the guarantee details, and keep copies of your contract, photographs and any correspondence.

If the installer has gone out of business or has not addressed your concerns, contact the guarantee provider. Most ECO measures must be installed by a TrustMark-registered installer, so you can also follow the TrustMark complaints process. Citizens Advice can refer matters to Trading Standards.

Ofgem does not deal directly with complaints about ECO installations, but it can help provide information you need to raise a dispute, such as the installer’s details.

Which energy companies offer ECO4?

Medium and large energy suppliers are obligated to deliver ECO4, and Ofgem lists them on its website. You do not have to approach your current energy supplier. You can contact any obligated supplier that you think will suit your needs, and it is worth asking more than one what measures it can offer.

What happened to ECO+ and the Great British Insulation Scheme?

The Great British Insulation Scheme (GBIS) was originally called ECO+. It began in April 2023 and ended on 31 March 2026, and it is now closed to new installations. It mostly funded single insulation measures for low-income and vulnerable households, and for homes with an EPC rating of D to G in Council Tax bands A to D in England and A to E in Scotland and Wales.

GBIS was a separate scheme from ECO4, although the two complemented each other.

What is the difference between ECO4 and GBIS?

What other energy-efficiency help is available?

If you do not qualify for ECO4, or you want to explore other options, you may be able to get help through the following.

Warm Homes: Local Grant (England)

This scheme offers free energy-saving improvements for homes in England that are privately owned, have an EPC rating of D to G, and where the household income is usually £36,000 a year or less. Higher earners may still qualify if they live in a certain postcode area or someone in the household receives certain benefits.

If your council has funding, it arranges a survey and may suggest improvements such as wall, loft and underfloor insulation, air source heat pumps, smart controls and solar panels. Your council then organises and pays for any work it has agreed with you, although a landlord may need to pay for some improvements. You can apply on GOV.UK, and your council usually contacts you within 10 working days to arrange a survey.

Boiler Upgrade Scheme (England and Wales)

The Boiler Upgrade Scheme gives grants towards replacing a fossil fuel heating system with a heat pump or biomass boiler. Ofgem lists the following amounts:

• £7,500 for an air-to-water or ground source heat pump (£9,000 in eligible off-gas grid properties until 31 March 2027)
• £7,500 for a water source heat pump
• £5,000 for a biomass boiler
• £2,500 for an air-to-air heat pump, for residential properties only

The scheme is installer-led, so your MCS certified installer applies for and redeems the voucher on your behalf.

Advice in Scotland and Wales

Home Energy Scotland and Nest can give advice if you live in Scotland or Wales.

Suggestions for your home

GOV.UK’s improve your home’s energy efficiency service is for homeowners in England and Wales. It asks about your property, then suggests improvements with an estimated cost, potential bill savings and next steps.

Can you combine ECO4 with other schemes?

You generally cannot use ECO4 and another government scheme to fund the same improvement. However, you may be able to use different schemes for separate work on your home. Check with each scheme provider before agreeing to any funding, as the rules depend on the measures involved.

Energy-efficiency improvements can help reduce how much energy your home needs. It is also important to check whether your current energy tariff is still right for you.

Compare energy tariffs with Switchcraft to explore available deals and see whether you could save on your energy bills.

Frequently asked questions

Is ECO4 free?

Not necessarily. ECO is not a grant scheme, and Ofgem says you may be asked to contribute to the cost of the installation. Being eligible also does not guarantee that anything will be installed.

Do I need to receive benefits to get help from ECO4?

Not always. If you do not receive a qualifying benefit, you may still qualify through ECO4 Flex if your local authority or supplier refers you, for example because your household income is under £31,000 or someone in the household has a health condition made worse by a cold home.

Can renters apply for ECO4?

Yes, but you need your landlord’s permission. GOV.UK says private renters need a home with an EPC rating of E, F or G.

Do I have to apply through my own energy supplier?

No. You can contact any obligated energy supplier, even if it is not your own.

Will ECO4 still be available in 2027?

ECO4 is due to end on 31 December 2026. The government has said it is replacing ECO with public funding through the Warm Homes Plan, so check GOV.UK for the support available in your area.

How do I find out my home’s EPC rating?

You can search for your property on the GOV.UK service to find an energy certificate. It covers England, Wales and Northern Ireland.

Can I get ECO4 and the Boiler Upgrade Scheme together?

Not for the same measures. ECO4 funding cannot be combined with funding from other government schemes for the same measures.

You can also read our guide to government grants and schemes to see what other support may be available.