The Energy Company Obligation (ECO) entered its fourth phase, ECO4, in July 2022 and runs until 31 March 2026, according to Leeds City Council1. ECO is a requirement placed on energy companies to improve the domestic energy efficiency of lower income homes1. Qualifying householders can access funding to upgrade heating or improve home insulation through the scheme1.
Eligibility depends on income and the home's energy performance certificate (EPC) rating. Homeowners must be in Band D to G; private tenants must be in Band E to G, since landlords cannot typically let a property below the minimum E requirement under Minimum Energy Efficiency Standards legislation1. At least one member of the household must receive one of the qualifying benefits: Income based Jobseekers allowance (JSA), Income related Employment & Support Allowance (ESA), Income Support (IS), Pension Credit, Working Tax Credit (WTC) or Child Tax Credits (CTC), Universal Credit (UC), Housing Benefit or Child Benefit1.
| Route | Who applies | Notes |
|---|---|---|
| Affordable Warmth (qualifying benefits) | Household applies directly with its chosen installer or supplier | Evidence of benefit receipt, often via a Department for Work and Pensions check with consent1 |
| Local Authority Flexible Eligibility (ECO Flex) | The relevant council scheme, not the householder | Private sector housing only1 |
Leeds City Council lists its current ECO Flex schemes as the Lincoln Green District Heating scheme in Burmantofts and the Clustering for Warmth Project, Clusters 1 to 5, with partners Cenergist contacting eligible householders1. Each applicant is individually assessed against published criteria in a Statement of Intent, with eligibility depending on income, property characteristics, health and household energy efficiency, following guidelines set by regulator Ofgem and the Department for Business, Energy and Industrial Strategy1.
"The scheme runs in phases and entered its fourth phase ECO4 in July 2022 and runs until 31 March 2026."
The availability of measures and funding depends on existing insulation levels, the proportion of the home needing improvement, the condition and age of the main heating system, and caps placed on certain measures1. The offer may differ between energy suppliers and installers, and some suppliers may require the household to be a customer to access support directly1.
Why it matters for households
ECO4 is supplier-funded rather than a direct government payment, so the money available to a home depends on which installer or supplier delivers the work and on the property's starting condition1. For a household in a hard-to-heat home, the practical effect is that a measure such as insulation or a heating upgrade may be fully or partly covered, but only where the EPC band and benefit criteria are met1. Because funding is capped for certain measures and assessed case by case, two similar homes can receive different offers1. The scheme's end date of 31 March 2026 sets the window in which works must be delivered under this phase1.
What happens next
Leeds City Council said it is identifying the delivery model for ECO4 Flexible Eligibility and will publish more information in the near future, and that it is investigating options to let third-party installers onboard with its ECO4 Flex scheme, after which an updated Statement of Intent will be published1. Households receiving qualifying benefits can still apply directly through TrustMark government endorsed installers or through Ofgem's ECO supplier contacts1.