The Department for Energy Security and Net Zero (DESNZ) opened a consultation on 29 August 2025 proposing to extend the end date of the Energy Company Obligation 4 (ECO4) scheme, which is currently due to end on 31 March 20261. The consultation ran until 11:59pm on 25 September 2025 and applies to England, Scotland and Wales1.
ECO4 obligates the larger energy suppliers to deliver a target of annual bill savings by installing energy efficiency and heating measures to homes in Great Britain1. According to DESNZ, these measures help households to keep their homes warmer and reduce their energy bills and carbon emissions1.
The consultation proposed a scheme extension of 6 to 9 months to maintain support for households and provide an opportunity for stronger consumer protections under the scheme1. DESNZ said the extension would also give the supply chain certainty of continued work for the duration of the extension, providing time for potential future schemes to be explored1. The consultation also sought views on a way for obligated suppliers to continue to deliver beyond their obligation target, with this additional delivery (carry-over) to count towards a possible future obligation1.
"This consultation proposes a scheme extension of 6 to 9 months to maintain support for households and provide an opportunity for stronger consumer protections under the scheme."
The consultation was open to all but was of particular relevance to energy suppliers, energy efficiency and heating measure installers, energy efficiency measure manufacturers and associated software developers, local authorities, consumer groups and academic groups1. DESNZ received 215 responses to the consultation from a variety of stakeholders, including energy suppliers, installers, trade bodies, local authorities and consumer stakeholders1.
The page was first published on 29 August 2025 and last updated on 23 January 2026, when the government response was published1. The response confirms that ECO4 will be extended by 9 months to 31 December 20261. It also states there will be no extension to the Great British Insulation Scheme, no increase in targets and no carry-over arrangements, in order to support remediation and an orderly closure of the scheme1.
Why it matters for households
For households in England, Scotland and Wales, the extension means the ECO4 scheme will remain in place for nine months beyond its original end date, to 31 December 20261. The scheme is delivered by larger energy suppliers, who are obligated to install energy efficiency and heating measures to meet annual bill savings targets1. The government response confirms there will be no increase in targets and no carry-over arrangements, which it says is to support remediation and an orderly closure of the scheme1. The Great British Insulation Scheme is not being extended1.
The consultation document noted that the measures installed under ECO4 help households to keep their homes warmer and reduce their energy bills and carbon emissions1. For a home's energy independence, the practical effect is that the route by which suppliers fund efficiency and heating improvements continues for a further nine months, while the government explores potential future schemes1. The response does not set out what those future schemes will be; that has not been reported1.
What happens next
The consultation concluded and the government response was published on 23 January 20261. The response confirms ECO4 will be extended by 9 months to 31 December 20261. No further steps are set out in the published outcome1.