Energy Grants and Schemes UK 2026/27 — ECO4, GBIS and More

ECO4 Scheme UK — Free Energy Efficiency Upgrades Explained 2026

Everything you need to know about the ECO4 scheme in the UK. Who qualifies, what work is covered, how to apply, who delivers the scheme, and what happens after ECO4 ends.

ECO4 was the UK government’s largest domestic energy efficiency programme, delivering free insulation and low-carbon heating to fuel-poor households over four years. Understanding the scheme’s structure helps clarify what current successor schemes offer — and what you may still be entitled to if you were assessed before the scheme closed.

For a full overview of grants and funding, see the Grants and Schemes hub.

How ECO4 Worked

The scheme obliged large energy suppliers (British Gas, EDF, E.ON, Octopus, OVO, Scottish Power, and others) to spend a fixed annual amount funding home improvements. Households did not pay energy suppliers — the supplier funded the work through their statutory obligation.

The typical process:

  1. Household contacts an energy supplier, approved installer, or applies via Simple Energy Advice
  2. Home assessment carried out (EPC survey and condition report)
  3. Eligibility confirmed against benefit and income criteria
  4. Approved ECO4 installer carries out the improvements
  5. Household pays nothing

The “whole-house” requirement was the defining feature of ECO4: installers had to raise the property’s EPC rating by at least one band (e.g. from E to D), not simply fit one isolated measure. This meant ECO4 improvements were often more comprehensive than GBIS works.

Eligibility Routes

Benefit Route

Receipt of any of the following:

  • Universal Credit (note: some income thresholds apply)
  • Pension Credit (any element)
  • Income-based JSA or ESA
  • Housing Benefit
  • Child Tax Credit or Working Tax Credit (household income under £31,000)
  • Income Support
  • Disability Living Allowance or PIP (with income test)

LA Flex Route (Flexible Eligibility)

Local authorities could nominate households without qualifying benefits if:

  • EPC rating D–G
  • Household income under £31,000 (or in or at risk of fuel poverty)
  • Confirmed by local authority officer or partner organisation

This route made ECO4 accessible to households that were struggling with energy costs but not receiving benefits — particularly important for the self-employed, those with variable income, or those recently moved off benefits.

What ECO4 Covered vs What It Did Not

Covered Not covered
Loft insulation New gas boilers (except first-time CH)
Cavity wall insulation Solar panels (generally)
Solid wall insulation (internal or external) Double glazing on its own
Underfloor insulation New roofs
Flat roof insulation External building work
Air source heat pumps Cosmetic improvements
First-time central heating Repairs to existing appliances
Smart heating controls

Worked Example — Benefit Recipient, Solid Walls

Household profile: Mid-terrace Edwardian house (1905), EPC E, gas central heating (old combi boiler), owner-occupier. Household on Universal Credit (no children, income from part-time work).

  • Eligible via benefit route (Universal Credit)
  • Home assessment: EPC E, solid brick walls (no cavity), 100mm loft insulation
  • Measures recommended: internal solid wall insulation (raises to EPC D), loft insulation top-up to 270mm, new smart heating controls
  • Cost to household: £0
  • Estimated combined value of works: ~£12,000
  • Estimated annual saving on heating: ~£450–£700

The Whole-House Requirement

Unlike GBIS (which funds one measure), ECO4 required that the combination of measures installed raised the property’s EPC rating. This had two consequences:

  1. More improvements per household — a loft insulation-only install was often not enough on its own; the installer would also need to do wall or floor insulation
  2. Surveyor discretion matters — the surveyor’s assessment determined which measures were needed to achieve the band uplift

If an installer told you only one measure was eligible and that wasn’t enough for the EPC uplift, they were likely referring to ECO4 rules correctly — additional measures would be needed to comply.

What to Do If You Were Mid-Application When ECO4 Ended

ECO4 closed to new applications in March 2026. If you were in the assessment or installation pipeline:

  • Work surveyed and confirmed before closure should have been honoured under the supplier’s ECO4 obligation — contact the installer or your energy supplier
  • If an installer has not proceeded, contact Ofgem’s consumer helpline or your referring energy supplier
  • For new applicants, relevant alternatives are:
    • GBIS (insulation only, no heat pumps)
    • HUG2 (if off-gas grid)
    • Boiler Upgrade Scheme (heat pump grant, income-neutral)
    • Nest Wales (if in Wales) or Warmer Homes Scotland (if in Scotland)

Quality of Work and Complaints

All ECO4 installers were required to be TrustMark-registered and hold relevant MCS certification for heat pump installations. If you had ECO4 work done and have concerns:

  1. Contact the installer first — they remain liable for workmanship after scheme closure
  2. Escalate to your energy supplier if the installer was referred by them
  3. Contact TrustMark (trustmark.org.uk) for persistent quality disputes — they operate a dispute resolution process
  4. Ofgem handles supplier-level compliance but does not resolve individual household installation disputes

Housing Tenure and ECO4

Tenure Can access ECO4? Conditions
Owner-occupier Yes Standard eligibility applies
Private renter Yes Landlord must give written consent
Social housing tenant Limited Primarily covered by separate social housing decarbonisation fund
Private landlord (renting out) Can arrange on behalf of tenant Tenant must be eligible; MEES may independently require improvement

Comparing ECO4, GBIS, and HUG2

Feature ECO4 GBIS HUG2
Benefit/income required Yes Low income group only Yes (under £36k)
General eligibility No (LA Flex only) Yes (council tax A–D) No
Off-gas required No No Yes
Insulation Yes Yes — one measure Yes
Heat pumps Yes No Yes
Solar panels Rarely No Some LAs
Cost to household £0 Free to small contribution £0
Scotland/Wales Yes Yes No (England only)

After ECO4 — What Succeeds It

At the time of writing, the following programmes are the main successors:

  • GBIS — if still running, covers insulation (check current status)
  • Boiler Upgrade Scheme — £7,500 grant toward heat pump (all income levels)
  • LA Flex — may continue under any successor obligation scheme
  • ECO5 — expected government successor obligation; check gov.uk for latest

Sources

  1. Ofgem — ECO4 scheme
  2. GOV.UK — Energy Company Obligation
  3. Energy Saving Trust — ECO4