What is the ECO4 Scheme UK?

Written-by

Janet Richardson

Reviewed-by

Richard Burdett

Updated on

Jan 04, 2026

What is the ECO4 Scheme UK?

The Energy Company Obligation scheme (ECO) is a government energy efficiency scheme that requires energy suppliers to improve energy efficiency in the UK to tackle fuel poverty and help reduce carbon emissions. The scheme was set up to target households that struggle to pay their heating bills. This government initiative aims to not only make homes warmer and household emissions lower but to make medium and larger energy companies more accountable for supporting low-income households.

Under ECO, medium and larger energy suppliers fund the installation of energy efficiency measures in UK households. Each obligated supplier has an overall target based on its share of the domestic energy market. The obligated energy suppliers work with installers to introduce certain energy efficiency measures into your home, such as loft or wall insulation or heating measures. They can choose what energy-saving measures they want to install, how much funding they provide and the installer that does the work.

The Energy Company Obligation (ECO) was launched in 2013 and according to Government figures, over 3.5 million measures have been installed in over 2.4 million homes since then. There have been four previous ECO schemes with ECO4 running from April 2022 to 31 March 2026.

What is ECO4?

The ECO4 scheme is the current phase of the ongoing government-initiated scheme which, like the three previous iterations, aims to improve the energy efficiency of UK households. Although there are a lot of similarities between phase three and four of the ECO scheme, the government is aiming to reach more people during this phase, which is due to continue until 31 March 2026.

The Main Changes to the Scheme

• Under ECO3, energy suppliers with more than 150,000 domestic customers were obligated to support eligible applicants. This obligation threshold remains in place under ECO4. A “buy-out mechanism” has been consulted on but has not been implemented, meaning smaller suppliers are not currently obligated.
• The government has changed the eligibility criteria for ECO4. Some disability-related benefits are no longer qualifying benefits on their own, while other benefits such as housing benefit and pension credit have been added to the list of qualifying benefits.
• The ECO4 Impact Assessment states that 46.1% of fuel poor households are not in receipt of benefits and so the government has expanded and reformed Local Authority Flexible Eligibility (LA Flex) so that suppliers can deliver up to 50% of their obligation via that route. This is to help better target households which are more likely to be on low incomes.
• There are new Energy Performance Certificate (EPC) requirements. The energy efficiency rating before installation must generally be E, F or G, and homes starting at F or G must be improved to at least EPC band D, where technically feasible and cost-effective.
• A large quantity of boiler grants has been removed from the ECO4 scheme. Under ECO3 around 135,000 boilers were installed, but under ECO4 new gas boiler replacements are capped at 5,000 across the entire scheme and only permitted in limited circumstances.

Can I Get ECO4 Funding?

To benefit from ECO4:

• You must own your own home or have the permission of your landlord. This rule applies even if the property you live in is owned by a social housing provider or management company. While the focus will be primarily on owner-occupied homes, this new phase of the grant will also support inefficient social housing and private rented housing (if the landlord permits it).
• You will need to receive at least one of the following benefits and satisfy the relevant income requirements, where applicable.
   
• Child Benefit
• Pension Guarantee Credit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Income support
• Tax Credits (Child Tax credits and Working Tax Credits)
• Universal Credit
• Housing benefit
• Pension credit saving credit
   

• You’re more likely to be eligible if you get the Warm Home Discount in the Core Group.
• You’re more likely to be eligible if you live in social housing with an EPC rating of E, F or G (check your energy performance certificate (EPC) or ask your landlord or social housing association).
• If you are in receipt of additional Department for Work and Pensions (DWP) benefits and meet Local Authority Flexible Eligibility criteria, the government can allow access to ECO4 even if you don’t receive Universal Credit.
• You will need to meet the criteria set by your local authority.

Local authorities can refer residents in their areas to obligated energy suppliers so that they can be offered support under the scheme. Energy suppliers themselves are also able to refer households if they are either struggling with persistent fuel debt and are supported by suppliers or are using pre-payment meters (PPM) and have regularly been unable to stay connected to their fuel supplies due to financial hardship.

You can also contact any of the obligated suppliers to find out how they may be able to help you. It doesn’t matter who you purchase your energy from, you can still benefit from ECO. You also don’t need to purchase your energy from an obligated supplier to benefit from ECO.

It’s also important to know that eligibility for ECO does not necessarily mean that an energy supplier or installer will decide to install an energy efficiency measure in your home. If you are contacted directly by an installer claiming to be working under the ECO scheme, always ask to see the following credentials: for almost all measures (except for connections to District Heating Systems) installers under ECO must be TrustMark accredited and will have a registration number.

Which Benefits Have Been Removed from The ECO4 Scheme?

• Armed Forces Independence Payment
• Attendance Allowance
• Carer’s Allowance
• Constant Attendance Allowance
• Disability Living Allowance (DLA)
• Industrial Injuries Disablement Benefit
• Personal Independence Payment (PIP)
• Severe Disablement Allowance
• War Pensions Mobility Supplement

If you receive Housing Benefit alongside any of these benefits, you may still qualify under the main eligibility route or via Local Authority Flexible Eligibility.

What Does ECO4 Cover?

Depending on which energy supplier you go for, you could get a range of different home improvements. Here are the key areas of interest below:

• Insulation: The ECO4 scheme will focus on improving the building fabric before installing new heating systems. Homes with an EPC rating of E, F or G must install relevant insulation measures where suitable before heating upgrades are considered. This is called a ‘fabric first’ approach. The ECO4 policy places particular emphasis on solid wall insulation, with an aim to deliver around 22,000 installations per year across the scheme.
• Repairing boilers: The government has stated that very few boiler or electric storage heater repairs were delivered under previous schemes. ECO4 aims to incentivise repairing relatively modern and efficient heating systems where possible. Heating systems that cannot be repaired may be replaced under the Broken Heating Cap, subject to strict eligibility rules.
• Installing greener heating systems: ECO4 focuses on replacing inefficient heating systems with low-carbon alternatives. Coal-fuelled systems remain excluded, and oil- and LPG-fuelled boiler replacements are also excluded, except in limited repair scenarios. The scheme encourages alternatives such as heat pumpss, district heating and biomass boilers.
• Installing solar PV: ECO4 can support solar photovoltaic (PV) installations in electrically heated homes, but typically only where it complements other primary measures and where heat pumps, biomass or district heat networks are unsuitable.
• District heating systems & heating controls: Companies can also pay for homes to be connected to district heating systems, where appropriate, or to install heating controls.

How to Apply for ECO4 All you need to do is to contact one of the energy suppliers that are offering ECO4. You will be asked to do a telephone assessment which will include answering questions about your income, whether you receive certain benefits and your property’s energy efficiency rating. An installer will then arrange a date to visit your home and confirm whether it's suitable for the grant. Which Energy Suppliers offer ECO4? They are:

• British Gas
• Octopus Energy (including former Bulb and Co-Op Energy customers)
• EDF Energy
• E.On
• OVO Energy (including Boost and SSE)
• Scottish Power
• Shell Energy
• So Energy
• Utility Warehouse
• Utilita

Other suppliers may have entered or exited the scheme — check Ofgem’s official list for the latest information. 

The amount of ECO measures each company fits depends on their market share. 

Suppliers must deliver at least 15% of their obligation to homes in rural areas, and up to 10% may be delivered through innovation measures. You do not need to approach your current energy supplier and can choose the provider that best suits your needs. Check out their contact details on the Ofgem website.