The Energy Company Obligation (ECO) is a government scheme that places a legal duty on larger energy suppliers in Great Britain to pay for energy efficiency and heating improvements in homes, mainly for low-income and vulnerable households. ECO4 is its fourth phase. Suppliers have recovered the cost through energy bills, and Ofgem administers the scheme.
What ECO4 pays for
Measures are installed by approved installers working with suppliers, often after a referral from a local council. Typical work includes:
- loft, cavity wall and solid wall insulation
- replacing inefficient heating, including with heat pumps
- other upgrades that improve a home’s energy performance.
ECO4 focuses on the least efficient homes, so eligibility depends on household income or benefits and the property’s Energy Performance Certificate rating.
Status in 2026
| Scheme | End date |
|---|---|
| ECO4 | 31 December 2026, after a nine-month extension |
| Great British Insulation Scheme | Closed on 31 March 2026 |
The government extended ECO4 to give suppliers time to meet their existing targets and to fix poor-quality installations. It did not widen the scheme’s scope or scale.
What replaces it
There will be no successor supplier obligation. The government announced in the November 2025 Budget that support will instead come through the Warm Homes Plan, funded by public grants rather than a levy on bills. It says this brings the plan to just under £15 billion of capital investment, including an extra £1.5 billion of grant funding for low-income households. Households not eligible for ECO4 can look at the Boiler Upgrade Scheme and the Warm Homes: Local Grant.
Eligibility and deadlines vary, so check GOV.UK or your local council before relying on any scheme. This is general information, not financial advice.
Read more: Renewable energy at home: what works in a UK house.