The ECO4 Order came into force in July 2022, Ofgem states, and applies to measures installed from 1 April 20221. It follows the closure of ECO3 on 31 March 20221. The scheme is a government energy efficiency scheme in Great Britain, designed to tackle fuel poverty and help reduce carbon emissions1.
ECO4 works by placing a Home Heating Cost Reduction Obligation (HHCRO) on medium and large energy suppliers, who must promote measures that improve the ability of low-income, fuel-poor and vulnerable households to heat their homes1. The overall target is divided between suppliers based on their relative share of the domestic gas and electricity market1. The Department for Energy Security and Net Zero sets ECO4 policy and legislation, Ofgem administers it on the department's behalf, and TrustMark oversees quality assurance of retrofits to technical and consumer protection standards1.
"The ECO3 scheme closed on 31 March 2022 and the ECO4 Order came into force in July 2022. ECO4 applies to measures installed from 1 April 2022 and will run until 31 December 2026, following a nine-month extension."
Sources differ on the end date. Ofgem gives 31 December 2026 following a nine-month extension1. A manufacturer page published in May 2022 states ECO4 would be in effect for four years, concluding on 31 March 20262, and a January 2024 page states a four-year period until 31 March 20263. A further page states the scheme started in July 2022 and will run until March 20264. The extension to December 2026 is not reflected in those pages.
On eligibility, one source states that to qualify for free loft insulation under ECO4, homeowners must fall under low-income status, meaning a household with an annual income of £31,000 or less, or receive certain benefits including Universal Credit, Working Tax Credit, Pension Credit Guarantee Credit and Child Benefit subject to income limits2. Another states the starting SAP rating of the property has to be E, F or G, with some scenarios where higher bands are eligible, and the household must be in fuel poverty through receipt of a qualifying benefit or through a Flexible Eligibility scheme5. A further source states criteria involve owning or privately renting a home with an EPC rating of D to G and qualifying for specific UK benefits3. Measures are split into primary and secondary categories, with at least one primary improvement needed to qualify for a secondary one; primary improvements include cavity wall, loft, underfloor and solid wall insulation and low-carbon heating, while secondary improvements include draught-proofing, double glazing and energy efficient doors2.
Why it matters for households
ECO4 is the route by which a qualifying household can have insulation or a heating upgrade funded through its energy supplier rather than paid for upfront. Because the obligation sits on suppliers and is divided by market share1, the funding available to a home depends on which supplier is involved and on the property's starting rating. The scheme's whole-house approach, with projects managed by a TrustMark Approved Retrofit Coordinator and PAS certification required5, means work is assessed against the property as a whole rather than measure by measure. For a household, the practical effect is that the fabric of the home, and in some cases its heating system, can be improved at reduced or no cost, which reduces the energy needed to keep it warm. Eligibility turns on benefit receipt, income and the property's rating, and the sources describe these tests differently2. Further detail is set out in the site's pages on ECO4 eligibility, qualifying benefits and boiler grant eligibility, with the scheme itself covered in ECO4: The Current Energy Company Obligation Scheme.
What happens next
Ofgem publishes monthly reports on how suppliers are progressing against their targets1. On 23 January 2025 the Department for Energy Security and Net Zero issued a statement about potential issues with ECO and GBIS installations1, and the same day it was announced in the House of Commons that letters would be sent over the following three weeks to householders who had had solid wall insulation installed through these schemes, with Ofgem managing a phased mailout and setting up a call centre and website6.
Sources6 cited
- Energy Company Obligation (ECO) | Ofgem, ofgem.gov.uk
- Can I get free loft insulation? | Viessmann UK, viessmann.co.uk
- Ways to improve your home's energy efficiency for free, or at a reduced price - Cosy Homes Oxfordshire, cosyhomesoxfordshire.org
- Solar water heating in the UK for homeowners: solar thermal vs solar PV - Sunamp Global, sunamp.com
- What you need to know about ECO4 - ecmk, ecmk.co.uk
- Solid wall insulation | Latest News: The Installation Assurance Authority (The IAA), theiaa.co.uk