The Energy Company Obligation (ECO4) has been extended to 31 December 2026, according to a Commons Library research briefing published on 13 May 2026. The extension gives energy suppliers additional time to meet existing targets and to remediate non-compliant installations1.
The same briefing states that the government decided to stop further funding of ECO4 through consumers' energy bills after March 2026, and that major suppliers are either no longer advertising ECO4 or accepting applications1. The Great British Insulation Scheme (GBIS, formerly ECO+ and now closed to applications) was not extended beyond March 20261.
The extension follows the publication of the Warm Homes Plan on 21 January 20261. The plan sets out over £5 billion of investment in home upgrades for low-income consumers by 2030, comprising over £4.4 billion of grant funding plus £600 million from the Warm Homes Fund targeted at low-income households1. A separate Warm Homes Fund will hold £5 billion in financial transactions, including £1.7 billion already allocated to low- and zero-interest consumer loans, supported by £300 million of capital investment, plus £0.6 billion of low-income funding. The residual £2.7 billion will be available as finance for investment in and loans to the home upgrade sector1. Details of the consumer loan offer had not been published at the time of the briefing; the government said in February 2026 that it would set out further detail "in due course"1.
The briefing also records findings on installation standards. A review found that a majority (92%) of External Wall Insulation installations and a large minority (27%) of Internal Wall Insulation installations under ECO4 and GBIS had at least one major technical non-compliance, with the report published in January 20261.
"The government has since extended ECO4, and it will now run until 31 December 2026."
| Scheme | Status |
|---|---|
| ECO4 | Extended to 31 December 2026; funding through energy bills stopped after March 2026 |
| GBIS (formerly ECO+) | Closed to applications; not extended beyond March 2026 |
| Home Upgrade Grant (HUG) | Closed March 2025 |
| Green Deal | Funding stopped July 2015; closed to applications 31 March 2021 |
Why it matters for households
ECO4 is funded through energy bills and requires suppliers to install measures such as insulation, heating and solar panels, focused on low-income households in England, Scotland and Wales1. The extension keeps the scheme open on paper until the end of 2026, but the briefing states that funding through bills stopped after March 2026 and that major suppliers are no longer advertising it or taking applications1. For a household that has already had work done under ECO4 or GBIS, the extension is chiefly relevant to remediation: the non-compliance findings mean some installations may need to be put right, and the briefing covers how to seek redress for ECO4 and GBIS insulation failures1. Households considering new work have no confirmed route through ECO4 at present, and the briefing does not report any replacement supplier obligation. The Warm Homes Plan's grant funding and loan proposals are the stated direction of travel, but the loan terms had not been published1.
What happens next
The Warm Homes Agency will begin "initial operations" in 2027, with Salix closing and its functions, alongside some from the Department for Energy Security and Net Zero and relevant roles in Ofgem, brought into a single executive agency1. The government said it will consult this year on bringing oversight of energy efficiency and microgeneration installations for government schemes under closer government control, and on the role of the agency1. From 2027/28, the Warm Homes: Social Housing Fund and Warm Homes: Local Grant are intended to be integrated into a single low-income capital scheme1.
Sources1 cited
- [](https://researchbriefings.files.parliament.uk/documents/CBP-9585/CBP-9585.pdf), researchbriefings.files.parliament.uk