ECO4 closes in December — last-chance grants

The Energy Company Obligation in its current form — ECO4 — closes on 31 December 2026. For households on means-tested benefits or in fuel poverty, this is the last seven months to access a fully-funded retrofit package that can include insulation, heating system upgrades and sometimes solar. A successor scheme is planned under the Warm Homes Plan, but no terms have been published. If you might qualify, do not wait.

What ECO4 funds

ECO4 is Ofgem’s whole-house retrofit scheme, paid for by a levy on energy suppliers. It is designed to upgrade the least energy-efficient homes in the UK and target households at risk of fuel poverty. The funded measures typically include:

• Cavity wall insulation.
• Solid wall insulation (internal or external).
• Loft insulation and top-up.
• Underfloor insulation.
• Heating system upgrades — replacement boilers, in some cases heat pumps.
• Heating controls and smart thermostats.
• Solar panels, in a small number of cases.
• Hot water cylinder insulation.
• Draught proofing.

The scheme typically covers 100% of installation costs for eligible households — no upfront cost, no contribution required. Some installers may ask for a small contribution if the home needs unusual remedial work, but the headline funding is normally complete.

Who qualifies

There are two routes into ECO4:

Route 1 — Means-tested benefits. If you (or someone in your household) receives one of these benefits, you likely qualify:

• Pension Credit (Guarantee Credit element).
• Universal Credit.
• Income-based Jobseeker’s Allowance.
• Income-related Employment and Support Allowance.
• Income Support.
• Working Tax Credit or Child Tax Credit.
• Housing Benefit.
• Pension Credit Savings Credit.
• Child Benefit (with income limits).

Route 2 — Flexible Eligibility (LA Flex). Local authorities can refer households into the scheme based on local criteria. Common qualifying conditions include low household income (below £31,000 in many areas), households with vulnerable members (elderly, children under five, long-term health conditions), or properties in identified deprivation areas.

The home itself must also qualify: it must have an Energy Performance Certificate rating of D, E, F or G. Homes rated A, B or C are not eligible — the scheme targets the worst-performing housing stock.

Who does not qualify

• Households not receiving any of the listed benefits and not flagged by LA Flex.
• Homes with an EPC of A, B or C.
• New-build homes generally have high EPCs and are excluded.
• Holiday lets and commercial properties.
• Households who have already received ECO4 funding (one award per property).

If you have a working boiler and a reasonable EPC, ECO4 is probably not the right route — the Boiler Upgrade Scheme might be, or the upcoming Warm Homes Plan loans.

How to apply

You do not apply directly to Ofgem. ECO4 is delivered by certified installers, often via local authority “LA Flex” routes. Three practical steps:

1. Contact your local council’s housing or energy team. They can confirm whether you meet flexible eligibility criteria and refer you to approved local installers.
2. Search for ECO4-certified installers in your area via the TrustMark directory. Installers handle the eligibility check and the application paperwork.
3. Get more than one quote and assessment. Some installers offer better-quality work or more thorough whole-home assessments than others. ECO4 is funded but quality varies.

The installer carries out an assessment, confirms eligibility with their funding partner, completes the work, and claims the funding back from the energy supplier. You should not be asked for payment unless something is genuinely outside the scope of the scheme (and even then, get the cost in writing first).

The December deadline matters

Three constraints push you to apply now:

Lead times. ECO4 installations involve survey, eligibility check, ordering equipment, scheduling work and post-install verification. Typical end-to-end timeline is two to four months. A November application is too late to complete by 31 December.

Installer capacity. Demand spikes ahead of scheme closures. The closer to December the harder it will be to find an installer with availability.

Successor uncertainty. The Warm Homes Plan’s low-income grant route is the natural successor, but no detailed terms have been published. There is no guarantee of continuity. Households should treat ECO4 as the current scheme to use, not assume a smooth handover.

Schemes you cannot combine

Ofgem’s scheme rules are explicit: ECO4 funding cannot be blended with other government grants for the same measure. This means you cannot stack ECO4 with:

• The Boiler Upgrade Scheme.
• The Social Housing Decarbonisation Fund.
• The Home Upgrade Grant.

You can however still receive Warm Home Discount (the £150 winter electricity rebate) and free smart meter installation alongside ECO4. The “no blending” rule applies to capital works, not to ongoing bill support.

If you are choosing between ECO4 and the Boiler Upgrade Scheme for a heat pump, the calculation depends on your circumstances. ECO4 covers more measures but is means-tested; BUS gives £7,500 (or £9,000 from July for off-grid homes) regardless of income. For low-income households, ECO4 is almost always the better route when both routes fund the same measure.

Sources

• Energy Company Obligation — Ofgem
• ECO FAQs for domestic consumers and landlords — Ofgem
• Energy Company Obligation explained — Energy Saving Trust
• Warm Homes Plan — gov.uk