25 August 2025

ECO4 Homeowner’s Guide: Unlocking Energy Funding for Your Home

With energy prices persistently high across the UK, cutting down on household running costs has become more important than ever. The government’s Energy Company Obligation (ECO) scheme is designed to help, and under its current phase—ECO4—it gives homeowners the chance to secure funding for energy-saving improvements. Want to know how the ECO scheme in 2025 can support you? This guide breaks down what it covers, who can benefit, and how you can access support, helping you make your home warmer and more affordable.

What Exactly Is the Energy Company Obligation (ECO)?

The Energy Company Obligation is a UK government program that makes larger energy suppliers responsible for supporting household energy efficiency. These companies are legally required to fund upgrades that help reduce energy use in homes across Britain. ECO has evolved over several stages, and the latest—ECO4—has a broader and more holistic focus than ever before.

Launched in April 2022 and running until March 2026, ECO4’s main aim is to help vulnerable and low-income households cut both their energy bills and carbon emissions for the long haul. Unlike earlier phases, ECO4 focuses on a “whole-house” approach, meaning multiple energy-saving measures are installed together to genuinely boost a home’s overall efficiency. This ensures the largest energy suppliers are directly improving comfort and sustainability for UK residents.

Put simply, suppliers must achieve energy savings by funding upgrades in eligible homes throughout England, Scotland, and Wales. Their goals are set in terms of both carbon savings and bill reductions, so the focus is squarely on helping the people who need it most.

How ECO4 Works in 2025

As we move through 2025, the ECO4 scheme continues to be a lifeline for low-income families and vulnerable homeowners. Its focus remains on making meaningful upgrades possible—especially for people who wouldn’t otherwise afford them.

Under the ECO scheme 2025, energy suppliers partner with approved installers, who identify eligible homes and arrange upgrades. Typically, you’ll get a free home survey to figure out the most effective improvements for your house. Rather than just a quick fix or a single upgrade, the aim is to deliver a whole-home package that ramps up your home’s Energy Performance Certificate (EPC) rating.

This bigger-picture approach means homes get upgrades that have a real, lasting impact—making them more comfortable and protecting against future energy cost rises. Priority is given to homes with poor EPC scores, especially those in bands D, E, F, or G, with the goal of moving them to at least a C rating.

Who Can Qualify for ECO4?

Eligibility for ECO4 hinges on your situation and the type of property you live in. The goal is to steer the help towards those who’ll see the greatest benefit.

Here’s a quick breakdown of the main criteria:

If You Receive Benefits

One of the simplest ways to qualify is if you or anyone in your household receives income-related benefits, such as:

  • Universal Credit
  • Pension Credit
  • Income Support
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker’s Allowance (JSA)
  • Child Tax Credit or Working Tax Credit
  • Housing Benefit

Property Eligibility

Your home needs an EPC rating of D, E, F, or G. The main focus is to make these properties more efficient, ideally improving them to at least a C. Some council tax bands may also be targeted if your local authority is involved.

For Social Housing Tenants

If you live in social housing and your property’s EPC is E, F, or G, you may qualify—though the rules can differ, so it’s always worth checking with your provider.

Local Authority Flex Option

“LA Flex” is part of ECO4, letting your local council identify other vulnerable or low-income households that don’t receive benefits but are still struggling. This flexibility widens access for those who may not otherwise qualify under national rules.

Which Home Improvements Are Funded by ECO4?

ECO4 is all about meaningful, energy-saving measures that upgrade your home’s efficiency. Rather than offering only one-off tweaks, the scheme funds a package of improvements suited to your property and needs.

Insulation Upgrades

Insulation is a top priority, as up to a third of a home’s heat is lost through uninsulated walls or roofs:

Heating System Improvements

Heating makes up a big chunk of energy use. Under ECO4, funding may be available for:

  • Replacing old heating systems with more efficient ones
  • Upgrading properties with outdated systems, like a back boiler
  • Installing central heating for the very first time
  • Adding smart heating controls and modern thermostats

Renewable Energy Solutions

ECO4 also covers green tech for the first time:

  • Solar PV (solar panel) systems
  • Air source heat pumps
  • More efficient electric storage heaters

The exact mix of measures will depend on your property survey. The scheme prioritizes whatever brings the biggest reduction in bills and emissions, with the aim to deliver real value.

How ECO4 Connects to Other Support Schemes

ECO4 works alongside similar initiatives. For example, the Great British Insulation Scheme is designed to provide single insulation measures to a broader group of people—sometimes covering those who miss out on ECO4. Local authorities often offer extra help, too, either bridging funding gaps or helping with measures not covered by national schemes.

Together, these projects ensure as many households as possible can access upgrades to make their homes warmer and greener.

How to Apply for ECO Funding

Applying for ECO4 is designed to be simple, but you’ll want to act soon as the scheme finishes in March 2026.

Start by checking your eligibility: reach out to an energy supplier or an accredited installer, and let them confirm your benefit status and property info. If you’re eligible, a qualified surveyor will visit your home for a free assessment to determine which upgrades are most suitable—and calculate how much you could save.

If your application is approved, the installer handles everything, ensuring qualified professionals complete the work and provide appropriate warranties.

The sooner you apply for ECO Funding, the greater your chance of benefiting before the deadline.

Should You Consider ECO4 for Your Home?

The ECO4 scheme is a powerful way to upgrade your home’s energy profile for the long term. The “whole-house” approach ensures that all the improvements work together to deliver maximum value—slashing energy bills and shrinking your carbon footprint.

If you’re a homeowner with limited income or you live in a draughty, inefficient property, now is the ideal time to see if you qualify. ECO4 has already helped thousands across the UK enjoy lower bills and cosier homes. Don’t wait until the scheme ends in March 2026—find out if you’re eligible for ECO Funding.

Common Questions

Am I required to accept a smart meter with my new upgrades?

Energy suppliers must offer you smart meters, but you can decline. However, they’re handy for tracking your energy use, so you can see the results of your new improvements in real time.

What does the Energy Company Obligation involve?

The scheme places legal requirements on major UK energy suppliers to fund and deliver energy-saving measures—like insulation and efficient heating systems—to households most in need, helping to reduce both bills and carbon emissions.

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