ECO4 was funding 40,000 home upgrades a year, cavity wall insulation, loft top-ups, first-time central heating. The Autumn Budget ended it with a single sentence in the small print.
As reported by Installer Online, the Department for Energy Security and Net Zero confirmed the Energy Company Obligation will not be extended beyond its current commitments. The scheme that since 2013 has funnelled £6bn of supplier levies into draught-proofing and boilers is effectively dead.
Who qualifies, and who doesn’t
ECO was the only national programme that paid for full-cost measures in homes with EPC ratings of D, E, F or G. It targeted households on means-tested benefits or with specific health conditions. A typical 3-bed semi in Manchester could get £8,000 of loft insulation, cavity wall fill and a new boiler at zero upfront cost.
The catch is that the scheme’s closure leaves no direct replacement. The Great British Insulation Scheme, launched in 2023, covers only loft and cavity wall insulation, and only for homes with an EPC below C. It does not fund boilers, heat pumps or solid wall insulation. A separate Boiler Upgrade Scheme offers £7,500 off a heat pump, but only for households that can afford the remaining cost, typically £5,000–8,000 after the grant.
What it costs a typical 3-bed semi
Ofgem figures show ECO was spending roughly £1.1bn a year by 2024. That money came from a levy on household energy bills, about £27 per year per dual-fuel customer. The levy will not disappear; suppliers will simply redirect it to other obligations or cut bills by a few pounds. But for a household earning £25,000 a year in a draughty 1930s semi, the loss of free insulation means paying £2,000–4,000 for a retrofit, or facing energy bills of £2,500 a year instead of £1,800 after upgrades.
Energy Saving Trust data suggests a typical semi-detached home with cavity wall insulation saves £300 a year on heating. Loft insulation to 270mm saves another £200. Without ECO, those savings are out of reach for the 4.5 million households living in fuel poverty, a figure that the End Fuel Poverty Coalition says could rise by 200,000 this winter.
EPC impact and the rental market
The government still intends to require all rental properties to have an EPC of C or above by 2030. Landlords currently rely on ECO for free or cheap upgrades to meet that target. With the scheme gone, the cost of raising a D-rated rental from D to C, typically £5,000–10,000 for insulation, glazing and a new heating system, falls entirely on the landlord.
Yet the National Residential Landlords Association estimates 60% of rental properties are still below C. The scrapping of ECO may accelerate a split in the market: landlords who can afford to retrofit will do so and raise rents; those who cannot will sell up, shrinking the supply of affordable rental homes.
What to do now
Households currently on an ECO referral, where a supplier has already surveyed your home or approved a quote, should push for installation before the scheme winds down. Applications already in the system will be honoured, but new referrals will stop.
For everyone else, the Great British Insulation Scheme remains open until March 2026. Eligibility checks are quick on the Energy Saving Trust website. The Boiler Upgrade Scheme still offers £7,500 for heat pumps, though installers report waiting lists of 6–12 weeks in some regions.
Local authority schemes, funded through the Home Upgrade Grant, may still cover solid wall insulation and heat pumps in off-gas areas. Check your council’s website for the latest postcode-specific offers.
The end of ECO is a blow to the government’s net-zero ambitions and to the households who need help most. But it is not the end of all support. The window is narrowing: act before spring 2025 when remaining funds may be reallocated.
Frequently Asked Questions
The ECO levy on bills, roughly £27 a year, may be reduced or redirected, but suppliers have not confirmed any immediate cut. The bigger impact is on future bills: without free insulation, fuel-poor households will continue paying higher heating costs, potentially £500–700 more per year than if upgrades had been installed.
Yes, through the Great British Insulation Scheme, but only for loft and cavity wall insulation, and only if your home has an EPC below C. Solid wall insulation, underfloor insulation and heating upgrades are not covered. Check eligibility on the Energy Saving Trust website or contact your energy supplier.
