The Energy Company Obligation (ECO4) is a UK government-supported initiative which aims to improve the energy efficiency of homes, reduce carbon emissions, particularly for low income and vulnerable households, tackle fuel poverty and help people cut their energy bills.
It is not a government grant scheme, instead it is the major energy companies who are obligated to provide funding in order to deliver energy-saving measures such as insulation, including loft and cavity wall insulation, and heating upgrades to eligible homes. The energy companies decide how much to fund, which projects to support, and which retrofit coordinators and installers to work with.
ECO4 focuses on improving the country’s least energy-efficient homes, promoting a more complete whole-house retrofit approach. It is also there to support the UK government’s commitment to achieving net zero emissions by 2050.
The minimum requirement is to improve the energy efficiency rating of band D and E homes to at least band C, and band F and G properties to at least band D.
Understanding the ECO4 scheme
The Energy Company Obligation (ECO) scheme has been active since 2013 and, so far, has completed four iterations: ECO, ECO1, ECO2, and ECO3.
This fifth and latest iteration, ECO4, was launched in 2022 and is currently scheduled to run until the end of March, 2026. ECO4 targets the least energy efficient homes in the UK, specifically those that have an Energy Performance Certificate (EPC) of D or lower. Through the scheme, these homes could receive heavily discounted or free home insulation, green heating systems or an upgraded boiler.
ECO4 represent another major step forward in the government’s efforts to tackle fuel poverty, reduce carbon emissions and move closer to net zero, and improve the overall energy efficiency of UK homes by 2035.
What improvements can be made under the ECO4 funding scheme?
The ECO4 scheme offers funding for a range of energy-efficient improvements (subject to a retrofit survey). These include:
- Loft Insulation
- Room In Roof Insulation
- Solid Wall Insulation
- Cavity Wall Insulation
- Floor Insulation
- Air Source Heat Pump
- Boiler Upgrade
- First Time Central Heating System
- Solar Panels
- Heating Control Upgrades
Who qualifies for ECO4?
To be eligible for ECO4 funding, you typically need to be a homeowner or private renter receiving certain means-tested benefits, and your property must have an Energy Performance Certificate (EPC) rating of D, E, F, or G.
Additionally, the scheme may support social housing tenants and those with low household incomes.
Qualifying benefits and Income thresholds
Households with a total income below £31,000 or where a household member has a medical condition that makes them vulnerable to the cold may also qualify for ECO4 funding, under a local authority’s Flex scheme.
You need to be in receipt of certain income-related benefits to be eligible, such as:
- Income-based Jobseeker’s Allowance
- Income Support
- Income-related Employment & Support Allowance
- Working Tax Credit
- Child Tax Credits
- Universal Credit
- Housing Benefit
- Pension Credit
Households with a total income below £31,000 or where a household member has a medical condition that makes them vulnerable to the cold may also qualify for ECO4 funding, under a local authority’s Flex scheme.
If you live in social housing with a low EPC rating (be it E, F or G), you might be eligible for help with insulation or heating.
If you are a private renter, you will need your landlord’s permission to have energy efficiency measures installed.
Importance of EPC ratings in determining ECO4 grant eligibility
Having a clear understanding of ECO4 eligibility criteria allows individuals to maximise available grant funding for home energy improvements, leading to lower energy bills, improved comfort, and a healthier environment.
By knowing which factors determine eligibility, residents can ensure they are in the best position to apply for and receive these grants, which can cover a significant portion or even all of the costs of energy-saving measures.
EPC ratings are based on each property’s energy efficiency, taking into consideration insulation, heating, lighting, and renewable energy use. Hence, ECO4 funding upgrades contribute to an improved EPC rating.
Good EPC ratings mean lower energy bills, something increasingly important with rising energy costs. If you’re selling, a better rating can boost your property’s value as buyers become more conscious of running costs.
As of now, landlords in England and Wales are legally required to have an Energy Performance Certificate (EPC) rating of at least E in their properties. However, there are plans in place that require landlords to meet a minimum of C by 2030.
Understanding ECO4 eligibility criteria is crucial for accessing the financial assistance needed to make homes more energy efficient, comfortable, and healthy, while also contributing to a more sustainable future.
If your home has a poor EPC rating and you meet the eligibility criteria, applying for the ECO4 scheme could be one of the best steps you take toward a more cost-effective future. Don’t miss out—check your eligibility today.
How to check your property’s EPC rating
You can find your property’s EPC easily through the government’s official register, by clicking here.
Simply enter the property’s postcode and select the correct address from the list to view or download the certificate. The register maintains records of current and previous certificates, giving insight into how the property’s energy efficiency has changed over time.
What if you can’t find an EPC rating online or if it’s expired?
If you can’t find a property on the register, it might not have had an EPC assessment in the last 10 years. This is common for homes that haven’t been sold or rented during this period.
Missing or expired EPCs properties need valid EPCs before being marketed for sale or rent. Estate agents can’t legally list a property without one, and landlords face fines for non-compliance. For property sales, missing EPCs can cause delays and might even affect mortgage applications, as some lenders require this information before offering funds.
Council tax bands and ECO4
The Great British Insulation Scheme (GBIS) is part of the ECO4 funding, but is designed to just provide a single, most cost-effective insulation measure to a property to achieve savings on utility bills. GBIS started in the summer of 2023 and is currently scheduled to run until 31st March 2026, in line with ECO4.
There are two routes for eligibility; either the property must be in Council Tax bands A-D, or the household must be of a low income. As with ECO4, properties must also have an EPC rating of D or below.
Support for vulnerable households and pensioners
If you have a health condition, keeping your home warm isn’t just about comfort – it is also essential for positive mental health and wellbeing.
A wide range of health conditions, confirmed by a GP referral, can make you eligible for ECO4. Vulnerable households, such as those with elderly residents/pensioners or young children, can also be eligible.
It is entirely up to a GP to decide if someone’s health condition makes it harder to live in a cold home and meets the Ofgem rules. If your GP refers you then installers can accept your application for ECO4.
However, please note that your property must also qualify.
Meeting the household criteria is just one step. Your property must also qualify, as funding is designed to improve energy efficiency in homes that need it the most.
What are the Ofgem rules on health conditions?
Ofgem has laid out some broad guidelines about which health conditions qualify for ECO4 funding. These include conditions that fall under one of these umbrella categories:
- Cardiovascular conditions (for example, heart disease, high blood pressure)
- Respiratory disease (such as asthma, COPD)
- Limited mobility (e.g., arthritis, neurological disorders)
- Immunosuppression) (e.g., autoimmune diseases, cancer treatment)
Yet while these categories provide a general framework, with a GP referral a wide range of health conditions could also make you eligible (if your property also qualifies).
Common health conditions that may qualify
Here’s a list of health conditions that could qualify for ECO4, either directly or with a GP’s support:
Respiratory Diseases: Asthma, Chronic bronchitis, Cystic fibrosis, Emphysema, Pulmonary fibrosis, Pneumonia recovery.
Cardiovascular Conditions: Atrial fibrillation, Congestive heart failure, Coronary artery disease, High blood pressure (hypertension), Peripheral arterial disease, Stroke recovery.
Limited Mobility: Arthritis (osteoarthritis or rheumatoid arthritis), Hip or knee replacements, Parkinson’s disease, Multiple sclerosis (MS), Neurological conditions affecting movement, Spinal injuries or chronic back pain.
Immunosuppression: Autoimmune diseases (e.g., lupus, Crohn’s disease), Cancer treatments like chemotherapy or radiotherapy, HIV/AIDS, Long-term use of immunosuppressive medications, Organ transplant recovery.
Other potential conditions: Anorexia or eating disorders that impact overall health and wellbeing, Chronic fatigue syndrome (CFS/ME), Chronic obstructive sleep apnea, Chronic pain disorders, Conditions affecting thermoregulation (e.g., hypothyroidism), Diabetes (especially if it affects circulation or mobility), Fibromyalgia, Neurological conditions like Huntington’s disease or cerebral palsy, Sensory impairments (e.g., blindness or deafness) if they impact mobility or health, Severe anxiety or depression impacting daily living, Severe eczema or psoriasis (especially if aggravated by cold conditions), Severe learning disabilities where health is affected by poor living conditions, Sickle cell disease, Raynaud’s disease.
How to apply for the ECO4 grant
External Wall Insulation can reduce energy bills by up to 40%, while also reducing outside noise and improving the thermal comfort in your home.
Due to the continued rise in energy costs, it is now more important than ever that your home is properly insulated to ensure it is as energy efficient as possible, while saving you money on your energy bills. It will also decrease your carbon footprint, and will positively contribute to the government’s plans for net zero by 2050.
Home Energy Experts can help you gain a warmer, cosier and much more energy efficient by utilising the government’s ECO4 scheme. Bring renewed energy efficiency to your home in four simple steps.
Step One: Register your interest
Fill out our easy enquiry form so we can check your eligibility for funding. A member of the Home Energy Experts team will then be in touch to confirm eligibility and guide you through the next steps.
Step Two: Assessment of your home
Once your eligibility for free funding is confirmed, a Home Energy Expert will set up a suitable time and date to visit your home in order to conduct a thorough home energy assessment, which we use to find out just what energy efficiency measures are beneficial for you and your property.
Step Three: Our Recommendations
You will receive a report detailing our recommendations and you will be able to confirm if you would like to proceed with the works.
Step Four: Your home improvements begin
This is the moment that your home energy improvements begin in earnest, at no cost to you. We will provide you with all the necessary guarantees, aftercare, maintenance and support, so you can gain the most from your energy efficiency solutions.
Get in touch with us and we’ll help get you started.
