ECO4 Funding
The Energy Company Obligation (ECO4) is a UK government energy-efficiency scheme running from August 2022 to 31 March 2026, aimed at reducing fuel poverty and carbon emissions by requiring energy companies—not through grants—to fund energy efficiency upgrades in domestic properties.
Targeting the least energy-efficient homes (bands D to G), ECO4 adopts a whole-house retrofit approach, mandating improvements such as insulation, first-time central heating, renewable heating, and district heating.
A key requirement is to upgrade homes in bands D and E to at least band C, and those in bands F and G to at least band D, with a focus on private tenure homes in the lowest bands.
Plans to remove a number of disability-related benefits from the eligibility criteria have been placed in order to create a greater emphasis on household income. This will mean that rather than simply claiming a benefit there will be a clearer focus on low-income homes and ensuring those who are struggling to heat their homes and pay their energy bills can access this funding.
If a member of a household is claiming an income-related benefit and the combined annual income of the household is less than £31,000, they could be viable for free insulation grants through ECO4. In place of the disability benefits that will be taken out of the criteria, Housing Benefits and Pension Credit Savings Credit will be added
Benefits that won’t qualify for ECO4 grants:
We cut 20,000+ tonnes of emissions, save households over £7 million and add £114 million in property value, every year. It’s no wonder thousands of clients trust us as their retrofit experts.
