The Department for Energy Security and Net Zero published its response to the consultation on extending the ECO4 end date on 23 January 2026, confirming that the ECO4 scheme will be extended by nine months to 31 December 20261. The scheme had been due to end on 31 March 20261.
The consultation ran from midday on 29 August 2025 to 11:59pm on 25 September 2025, and proposed an extension of six to nine months1. The government received 215 responses from stakeholders including energy suppliers, installers, trade bodies, local authorities and consumer stakeholders1. The outcome applies to England, Scotland and Wales1.
The response states that 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. The original consultation had sought views on a way for obligated suppliers to continue delivering beyond their obligation target, with that additional delivery counting towards a possible future obligation1. That carry-over proposal has not been taken forward.
"It confirms that ECO4 will be extended by 9 months to 31 December 2026. 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 scheme."
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. The measures are intended to help households keep their homes warmer and reduce energy bills and carbon emissions1.
| Decision | Outcome |
|---|---|
| ECO4 end date | Extended by 9 months to 31 December 2026 |
| Great British Insulation Scheme | No extension |
| Supplier targets | No increase |
| Carry-over | No carry-over arrangements |
Why it matters for households
The extension keeps the ECO4 route open for a further nine months beyond the date it was previously expected to close, so the free boiler grant and heat pump funding delivered through supplier obligations remain available in principle over that period. Because targets are not being increased, the total volume of work suppliers are obliged to deliver is unchanged; the extension spreads the same obligation over a longer window rather than adding new funded capacity.
The decision not to extend the Great British Insulation Scheme means the two schemes now diverge in end dates, which affects how households and their advisers compare the GBIS and ECO4 routes. The absence of carry-over arrangements means delivery beyond a supplier's obligation target will not count towards a future obligation, removing a mechanism the consultation had floated for continuity between schemes.
For a home's energy independence, the practical effect is continuity of the existing funded-measure route rather than an expansion of it. Eligibility rules, measure lists and supplier delivery under ECO4 are unchanged by this response; the change is to the closing date. The government response does not set out new eligibility criteria or new funding levels, and no future scheme has been confirmed.
What happens next
ECO4 is now scheduled to close on 31 December 20261. The response states the extension is intended to support remediation and an orderly closure of the scheme1. No successor scheme has been announced in the response, and the consultation noted that the extension provides time for potential future schemes to be explored1.