ECO4 scheme: what it covered and its end date

The ECO4 scheme, a UK government initiative designed to improve home energy efficiency and reduce fuel poverty, is nearing its conclusion. While originally set to end on 31 March 2026, the scheme was extended and is now officially scheduled to close on 31 December 2026. This means new applications are becoming increasingly limited as energy suppliers meet their obligations. Understanding what ECO4 aimed to achieve and what it covered can help you navigate the landscape of energy efficiency support available now and in the future.

If you are looking to make your home more energy efficient, you will also want an energy supplier that helps you manage your usage and costs. Fuse Energy offers clear pricing and in-app usage data to help you stay on top of your energy consumption. Click here to switch to Fuse Energy today.

What was the ECO4 scheme?

The ECO4 scheme was the fourth iteration of the Energy Company Obligation, a UK government energy efficiency programme. It was designed to tackle fuel poverty and reduce carbon emissions by placing a legal obligation on large energy suppliers to fund energy efficiency improvements in eligible homes across Great Britain. The scheme was administered by Ofgem, which set the rules and monitored compliance of the obligated energy suppliers.

Aims and objectives of ECO4

The primary aims of ECO4 were to alleviate fuel poverty, accelerate progress towards climate change targets, and reduce heating costs for households. It focused on improving the least energy-efficient properties, typically those with an Energy Performance Certificate (EPC) rating of D, E, F, or G. By targeting these homes, the scheme aimed to make significant improvements to the UK's housing stock and help vulnerable households, often with the goal of upgrading properties to at least an EPC Band C.

How ECO4 worked

Under ECO4, obligated energy suppliers provided funding for a range of energy-saving measures. This funding was directed towards households that met specific eligibility criteria, ensuring that support reached those most in need. The scheme operated by requiring these suppliers to meet targets for reducing carbon emissions and delivering energy efficiency improvements, effectively subsidising the cost of upgrades for eligible properties.

Who was eligible for ECO4 grants?

Eligibility for ECO4 grants was primarily based on household income and property characteristics, ensuring the scheme targeted those most likely to benefit from reduced energy costs and improved home comfort.

Benefit-based eligibility

A significant pathway to ECO4 eligibility was through receiving specific means-tested benefits. These included, but were not limited to, Universal Credit, Pension Credit, Income Support, Income-based Jobseeker's Allowance (JSA), Income-related Employment and Support Allowance (ESA), Child Tax Credit, Working Tax Credit, Housing Benefit, and Child Benefit (subject to income thresholds). This ensured that low-income households were prioritised for support.

Local Authority Flex (LA Flex)

Beyond benefit-based criteria, the ECO4 scheme also incorporated a mechanism known as Local Authority Flex (LA Flex). This allowed local authorities to identify and refer households that were not receiving qualifying benefits but were still deemed to be living in fuel poverty or were vulnerable to the effects of a cold home. LA Flex provided a crucial route for those who might otherwise have missed out on support.

Property requirements (EPC ratings)

ECO4 specifically targeted properties with lower EPC ratings, typically those rated D, E, F, or G. These are generally the least energy-efficient homes, offering the greatest potential for improvement and subsequent energy savings. The scheme aimed to upgrade these properties to a higher EPC band, often targeting at least a Band C.

What home improvements did ECO4 cover?

The ECO4 scheme funded a variety of energy efficiency measures designed to significantly improve a home's thermal performance and reduce its energy consumption.

Insulation measures

Insulation was a core component of ECO4, as it directly impacts heat retention within a property. The scheme covered measures such as:

• Loft insulation: Preventing heat loss through the roof.
• Cavity wall insulation: Filling gaps in external walls to improve thermal efficiency.
• Solid wall insulation: Applying insulation to the interior or exterior of solid walls, a more complex but highly effective measure for older properties.
• Room-in-roof and underfloor insulation: Addressing heat loss in specific areas of the home.

Heating system upgrades

Beyond insulation, ECO4 also supported upgrades to heating systems, moving towards more efficient and sustainable options. This included the installation of modern, energy-efficient boilers (such as condensing boilers), first-time central heating systems, electric storage heater upgrades, and notably, heat pumps. Smart heating controls and thermostats were also covered.

Renewable technologies

While the primary focus was on insulation and heating, ECO4 also supported the installation of certain renewable technologies, such as solar photovoltaic (PV) panels. These measures aimed to further reduce a household's reliance on fossil fuels and contribute to lower carbon emissions, aligning with the UK's broader climate change targets.

How to apply for ECO4 (historical process)

The application process for ECO4 involved several steps, primarily centred around contacting energy suppliers or approved installers.

Contacting obligated energy suppliers

Households interested in ECO4 grants would typically begin by contacting one of the energy suppliers obligated under the scheme. These suppliers had targets to meet and could provide information on eligibility and the types of measures available. They often had networks of approved installers who could carry out the work.

Working with approved installers

Once initial eligibility was established, the process usually involved working with an approved installer. These installers would assess the property, recommend suitable energy efficiency measures, and handle the grant application on behalf of the homeowner or tenant. They played a crucial role in ensuring that the work was completed to the required standards.

Is the ECO4 scheme still available?

It is important to be clear about the current status of the ECO4 scheme to avoid confusion and potential pitfalls.

The scheme's conclusion date

The ECO4 scheme officially ends on 31 December 2026. While this is the final deadline, many energy suppliers may stop accepting new applications earlier as they fulfil their obligations. Any promises of ECO4 grants or services after this date are likely scams. It is crucial to be vigilant against fraudulent schemes that may try to exploit past government initiatives.

What to do if you missed ECO4

For those who were eligible but did not apply before the deadline, the focus now shifts to understanding current and future energy efficiency support. While ECO4 is concluding, the government and other organisations continue to offer various programmes aimed at improving home energy efficiency.

Navigating your energy efficiency future

Even though the ECO4 scheme is ending, there are still ways to improve your home's energy efficiency and manage your energy costs effectively.

Current government support and schemes

The UK government regularly introduces and updates schemes to support energy efficiency and reduce fuel poverty. While specific grants may change, it is always worth checking official government websites and trusted advice services for information on currently available programmes. These might include successor schemes to ECO4, or other grants for specific measures like boiler upgrades or insulation.

Independent energy efficiency improvements

Beyond government grants, many energy efficiency improvements can be undertaken independently. Simple steps like improving draught-proofing, upgrading to LED lighting, or investing in smart thermostats can make a noticeable difference. For larger projects, consider professional energy audits to identify the most impactful upgrades for your home.

Managing your energy with Fuse

While Fuse Energy is an energy supplier and does not administer or provide grants for energy efficiency schemes like ECO4, we empower our customers with the tools to manage their energy use. Fuse provides transparent pricing and in-app data, giving you the control needed to make informed decisions about your energy consumption. This aligns with the long-term goal of energy efficiency, moving beyond one-off grants to sustainable energy practices. With Fuse, you get more 'power to play with' in your energy budget, helping you understand your usage and costs effectively.

Managing your home's energy should be straightforward and transparent. Fuse Energy offers clear pricing and real-time usage data through our app, helping you understand and control your energy consumption. Our 24/7 human customer support is always available to assist you. Switching to Fuse is quick and easy, allowing you to take charge of your energy bills from day one. Click here to switch to Fuse Energy today and discover a smarter way to power your home.