The Autumn Budget killed off ECO4, the Energy Company Obligation that since 2022 has funnelled hundreds of millions into free insulation and boiler upgrades for the UK’s least efficient homes. Installer Online reported the scrapping on 31 October, citing government documents that confirmed the scheme would not be renewed. For the 2.3 million households still living in EPC bands F or G, the loss is immediate and concrete.
As reported by Installer Online, the Department for Energy Security and Net Zero confirmed that no new ECO4 applications will be accepted after the Budget date. Households already in the pipeline, those with a valid home energy assessment and an installer assigned, should still receive their upgrades. Everyone else is out of luck.
Who qualifies, and who doesn’t
ECO4 was designed for low-income households, private renters, and social housing tenants living in properties with an EPC rating of D or below. It covered cavity wall insulation, loft insulation, underfloor insulation, and in some cases first-time central heating or replacement boilers. The scheme paid for 100% of the cost, capped at around £10,000 per property depending on the measure.
Typical savings were real: a semi-detached house moving from EPC band E to D could shave £300–£400 a year off gas bills, according to Energy Saving Trust data. That saving now disappears for new applicants. The catch is that the government has not replaced ECO4 with a like-for-like programme. Instead, it is relying on the Great British Insulation Scheme (GBIS), which launched in 2023 but covers fewer measures and caps funding at lower levels, typically £1,500–£2,000 per home.
What it costs a typical 3-bed semi
Without ECO4, a homeowner in a 1960s semi with no loft insulation and single-glazed windows faces a stark choice: pay for upgrades themselves or keep burning gas at current prices. Ofgem’s price cap for October–December 2024 sets the typical dual-fuel bill at £1,717 a year. For an uninsulated home, actual consumption can push that to £2,500 or more.
Installing loft insulation costs roughly £500–£700 for a professional job; cavity wall insulation runs £1,000–£2,000. Underfloor insulation in a suspended timber ground floor can cost £2,500–£4,000. None of these figures are covered by remaining grants for most households, GBIS is primarily aimed at those with an EPC of D or below who also receive a means-tested benefit. The government estimates GBIS will reach only 300,000 homes over three years, compared with ECO4’s 450,000 in two years.
What homeowners should do now
If you already have an ECO4 application in progress, contact your installer immediately to confirm it is still valid. For everyone else, check your eligibility for GBIS through the Energy Saving Trust’s online tool or by calling the Simple Energy Advice service. Local councils also run their own schemes, often funded through the Social Housing Decarbonisation Fund or the Home Upgrade Grant, but these are patchy and oversubscribed.
The Budget also extended the Boiler Upgrade Scheme for heat pumps until 2028, offering £7,500 off an air-source heat pump. That is a separate route for homeowners who can afford the remaining cost (typically £5,000–£8,000 after the grant). It does not replace the free insulation that ECO4 provided. The window for action is closing: GBIS funds are allocated on a first-come, first-served basis and are expected to run out by mid-2025. Households on standard variable tariffs should apply through gov.uk before the end of March 2025.
Frequently Asked Questions
ECO4 was the Energy Company Obligation scheme that provided free insulation and boiler upgrades to low-income UK households since 2022. It was scrapped in the Autumn Budget on 31 October 2024, with no new applications accepted after that date, leaving 2.3 million homes in EPC bands F or G without access to this funding.
Yes, if you already have a valid home energy assessment and an installer assigned, your ECO4 upgrades should still go ahead. However, anyone without an active application in the pipeline is no longer eligible, and the scheme has not been replaced with a like-for-like programme.
For a typical 1960s 3-bed semi-detached house, professional loft insulation installation costs between £500 and £700. Without ECO4 funding, most homeowners must pay this themselves, as the replacement Great British Insulation Scheme caps support at £1,500–£2,000 per home and is only for those on means-tested benefits.
The Great British Insulation Scheme (GBIS) launched in 2023 as a replacement for ECO4, but it covers fewer measures and offers lower funding, typically £1,500–£2,000 per home. It is primarily aimed at households with an EPC rating of D or below who also receive a means-tested benefit, and the government estimates it will reach only 300,000 homes over three years.
First, check your eligibility for the Great British Insulation Scheme via the Energy Saving Trust's online tool or Simple Energy Advice service. You can also contact your local council, as some run schemes through the Social Housing Decarbonisation Fund or Home Upgrade Grant, though these are patchy and oversubscribed. Otherwise, expect to pay for upgrades yourself, such as £1,000–£2,000 for cavity wall insulation.
