Autumn Budget announces ECO4 will end on 31 March 2026

The UK Government's Autumn Budget, announced on Wednesday 26 November 2025, included the news that the Energy Company Obligation (ECO4) scheme will end on 31 March 2026¹. The Budget did not impact the Boiler Upgrade Scheme (BUS), despite recent media speculation¹.

MCS, the certification body for small-scale renewable installations, said the decision would affect both households and the installers delivering work under the scheme. Its chief executive, Ian Rippin, said:

"MCS is disappointed by the Government's decision to end the Energy Company Obligation (ECO4) in today's Budget, which will create substantial challenges for businesses, hinder sector growth, and adversely affect some of the most vulnerable households in the country."

MCS reported that there have been around 20,000 certified solar PV and 10,000 certified heat pump installations under ECO4 since February 2025 alone, and that nearly 400 MCS certified installers are delivering work under the scheme¹. It said ECO4 placed financial responsibility for installing clean heat measures on energy suppliers¹. The Warm Homes Plan had not been published at the time of the announcement¹.

Accounts of the closure date differ. MCS, reporting on the day of the Budget, states ECO4 will end on 31 March 2026¹. Guidance published later by the Energy Saving Trust states that "the UK Government announced that the ECO scheme would close on 31 December 2026"². Two regional solar guides, both last updated on 27 July 2026, also say the scheme ends in December 2026³. The reason for the difference has not been reported.

Why it matters for households

ECO4 is the obligation that puts the cost of installing energy efficiency measures such as insulation, solar panels and heat pumps onto energy suppliers rather than the household, for people claiming certain benefits or living in social housing². Eligibility under the scheme requires a homeowner or private tenant to have an Energy Performance Certificate rating of D to G and to claim one of a list of benefits including Child Benefit, Pension Guarantee Credit, Income-related Employment and Support Allowance, Income-based Jobseeker's Allowance, Income Support, Universal Credit, Housing Benefit and Pension Credit Savings Credit². Applications are made through specific energy suppliers, and a household can apply through one even if it is not a customer².

For a home that would otherwise rely on ECO4, the closure removes a route to funded boiler replacement and to heat pump funding at no upfront cost. The separate Boiler Upgrade Scheme remains in place and offers a grant towards the cost of a heat pump or biomass system¹. The two schemes differ in who pays and who qualifies, which is set out in our comparison of the Boiler Upgrade Scheme and ECO4.

What happens next

The Warm Homes Plan had not been published when the Budget was announced, and MCS said it hoped to see a fully funded offer so that households eligible under ECO4 could continue to access low-carbon energy¹. The Energy Saving Trust states that the Warm Homes Plan includes plans for fully funded support for low-income families and low and zero-interest loans for homeowners regardless of income, but that the UK Government has not said when this financial support will be available, only that it will give more detail later in the year².

Sources4 cited

1. MCS responds to the Autumn Budget - MCS, mcscertified.com
2. Financial support for home energy efficiency - Energy Saving Trust, energysavingtrust.org.uk
3. Solar panels in Kent | Grants, installers & local costs 2026, sunsave.energy
4. Solar panels in Dorset | Grants, installers & local costs 2026, sunsave.energy