The Energy Company Obligation (ECO) is a UK Government scheme designed to improve household energy efficiency, reduce energy consumption, and lower carbon emissions. It helps eligible households make their homes warmer, more affordable to heat, and better for the environment.
ECO was first introduced in 2013 and has evolved through several phases. The latest phase, ECO4, runs from 2022 to 2026 and builds on the success of earlier versions, targeting support to low-income and vulnerable households.
Eligibility
You may qualify for help under ECO4 if you meet one or more of the following criteria:
- You receive means-tested benefits (such as Universal Credit, Pension Credit, or Income Support).
- Your household income is £31,000 or less per year.
- You have a health condition that is made worse by living in a cold home.
In addition, your property must usually have an Energy Performance Certificate (EPC) rating of D or below to be eligible for home improvements under the scheme.
You can check your EPC rating and eligibility through our Eligibility Checker. Consumer Rights will guide you through the application process, confirm your options, and connect you with a local, highly vetted, government-approved installer to carry out the improvements safely and professionally.
What Home Improvements Are Available?
Under ECO4, you can access a range of fully or partially funded energy efficiency measures. These may include:
- Insulation: wall or loft insulation to help your home retain heat.
- Heating upgrades: new efficient boilers, electric storage heating, or low-carbon systems such as heat pumps.
- Renewable energy: installation of solar panels to reduce electricity costs.
ECO4 takes a “whole-house” approach, improving both how your home generates and retains heat, helping to lower energy bills and improve comfort year-round.
Who Funds ECO4?
ECO4 is funded by large energy suppliers rather than directly by the Government. These energy companies are legally required to help households cut their energy use by funding home energy efficiency upgrades.
The scheme is administered by the Government through the Department for Energy Security and Net Zero (DESNZ), which took over responsibility for energy policy from the former Department for Business, Energy and Industrial Strategy (BEIS) in 2023.
Why ECO4 Matters
The Energy Company Obligation is an essential part of the UK’s strategy to reach net zero carbon emissions by 2050.
It aims to:
- Make homes warmer and cheaper to heat.
- Reduce fuel poverty by helping those most in need.
- Support public health by cutting cold-related illnesses.
- Create jobs and stimulate the low-carbon economy.
- Help the UK lower national emissions and energy demand.
Guidance and Administration
Following the closure of BEIS, all policy guidance for the ECO4 and ECO4 Flex programmes is now managed by DESNZ and Ofgem. Ofgem publishes separate guidance for:
- Local authorities and devolved administrations.
- Energy suppliers and installers.
This ensures the scheme is transparent, consistent, and supports innovation across the energy efficiency sector.
In summary, The Energy Company Obligation (ECO4) is a vital UK initiative that focuses on helping households improve energy efficiency and reduce bills. By prioritising homes in energy efficiency bands D–G, the programme is making a measurable impact on fuel poverty and supporting the UK’s transition to a low-carbon, net zero future.
Don’t Forget
If you’re finding energy costs difficult to manage, receiving benefits, on a low income, or your home is hard to heat, support may be available. Through the government-backed ECO4 Scheme and the Great British Insulation Scheme (GBIS), eligible households can receive free or heavily discounted insulation and heating upgrades, helping to make homes warmer, healthier, and more affordable to run.
Check your eligibility today, it’s quick, free, and could help you cut your energy bills while improving your home’s comfort and efficiency.
Useful Resources:
Cost of Living Support Available:
- Household Support Fund (England)
- Cost of Living Payments
- Support for Mortgage Interest (SMI)
- Mortgage Guarantee Scheme
- Council Tax Reduction
ECO4 Support Available:
- Department for Business, Energy & Industrial Strategy, Energy Company Obligation
- Ofgem Energy Company Obligation (ECO4) Guidance: Delivery V1.1
- Ofgem Energy Company Obligation (ECO)
- UK Government, Help from your energy supplier: the Energy Company Obligation
- Which? Energy Company Obligation (ECO)
Other Support Available:
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