ECO4 scheme: free home insulation help in the UK and who qualifies

The Energy Company Obligation (ECO4) is a UK government scheme that helps low-income and vulnerable households insulate their homes and improve their heating for free or at a reduced cost. Here is who qualifies for help, what the work covers, how to apply and how it differs from the Boiler Upgrade Scheme.

What is ECO4 and who pays for it?

ECO4 is an obligation the government places on large energy suppliers, who fund and arrange the work rather than it coming straight from the public purse. The scheme started in July 2022 and is the fourth phase of the Energy Company Obligation. It is overseen by Ofgem, the energy regulator, and the contact details of participating suppliers are published on the Ofgem website. You can approach any participating supplier, not only your current one.

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Who qualifies for ECO4 help?

Eligibility depends on the benefits you receive and the condition of your home. You may qualify if you claim a benefit such as Universal Credit, Pension Guarantee Credit, Pension Savings Credit, Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Child Benefit or Housing Benefit. People living in social housing may also qualify.

Your home's energy efficiency rating matters too. Owner-occupiers must have an Energy Performance Certificate (EPC) rating of D, E, F or G, while private renters and social housing need a rating of E, F or G. A private tenant must also have the owner's permission for the work.

What does the scheme cover?

It pays for insulation and heating improvements. Examples include loft and cavity wall insulation, repairing or replacing a boiler, and — for social housing tenants — installing a heating system for the first time. The official GOV.UK page lists the specific measures and separately warns of quality issues with some solid wall insulation fitted under the scheme.

How do you apply for ECO4?

The easiest way is to start with your local council or an energy supplier directly. Check whether your council takes part in the scheme, or contact a supplier using the details on the Ofgem website. If you are eligible, the supplier will arrange an assessment of your property. Be wary of agents who contact you out of the blue: if you are unsure an offer is genuine, check with your council or the supplier the agent represents.

How does ECO4 differ from the Boiler Upgrade Scheme?

The main difference is who gets the money and for what. The Boiler Upgrade Scheme does not depend on benefits or income: it is a fixed grant to replace fossil-fuel heating with a heat pump or biomass boiler — £7,500 towards a heat pump and £5,000 towards a biomass boiler in England and Wales. ECO4, by contrast, is targeted help tied to benefits and focuses on insulation and heating repairs. The separate Great British Insulation Scheme also offers insulation help.

When does ECO4 end?

ECO4's target was originally due by 31 March 2026, but the government has extended the scheme so that ECO4 will now end on 31 December 2026. The Great British Insulation Scheme, however, still ends on 31 March 2026, the date by which insulation must be installed. If work is done poorly, complaints go through the Ofgem process.