The ECO4 Scheme (Energy Company Obligation, Phase 4) is one of the UK government’s most powerful initiatives to help households reduce energy bills and improve energy efficiency. Whether you’re a homeowner or a tenant, the scheme offers free or heavily subsidised upgrades such as insulation, boiler replacements, and renewable energy solutions.
But what makes ECO4 truly valuable? And who exactly can apply?
Let’s break it down step-by-step so you know if you can take advantage of this grant today.
1. What is the ECO4 Scheme?
The ECO4 Scheme is the fourth phase of the UK government’s Energy Company Obligation program, running from April 2022 to March 2026. It’s designed to help low-income households, those on certain benefits, and homes with poor energy efficiency ratings (EPC D, E, F, or G).
Funding Source:
The scheme is funded by large energy suppliers who are legally required to support energy-saving improvements in UK homes.
Core Upgrades Covered:
- Loft and cavity wall insulation
- Solid wall insulation
- First-time central heating systems
- Boiler upgrades and repairs
- Renewable heating (heat pumps, solar panels in some cases)
2. Benefit #1 – Free or Low-Cost Energy Efficiency Upgrades
The most obvious benefit is cost savings. Many upgrades under ECO4 are completely free for eligible households.
Examples of Free Installations:
- Loft insulation worth £400–£600 installed at no cost
- Cavity wall insulation worth £700–£1,500
- Boiler replacement worth £2,000–£4,000
Why it matters:
Without the scheme, these improvements would cost thousands. ECO4 covers 100% for qualifying applicants.
3. Benefit #2 – Lower Energy Bills Every Year
An energy-efficient home uses less fuel to keep warm.
On average, ECO4 upgrades can cut annual energy bills by £300–£600.
Example Savings:
- Loft insulation: Save up to £285/year
- Cavity wall insulation: Save up to £305/year
- New boiler: Save up to £365/year
Over 10 years, this could mean £3,000–£6,000 saved just from reduced heating costs.
4. Benefit #3 – Improved Comfort & Health
Cold and damp homes can cause serious health problems, especially for:
- Children
- Elderly residents
- People with respiratory issues
ECO4 helps by:
- Eliminating drafts and cold spots
- Reducing dampness and mould growth
- Keeping indoor temperatures stable
This means better living conditions all year round.
5. Benefit #4 – Increases Your Property Value
Homes with a higher Energy Performance Certificate (EPC) rating sell faster and at higher prices.
ECO4-funded improvements can raise your EPC score, making your home:
- More attractive to buyers
- Compliant with future rental regulations
A well-insulated home can boost value by up to 14% according to UK housing market reports.
6. Benefit #5 – Helping the Environment
Every ECO4 installation reduces your home’s carbon footprint.
By using less gas or electricity for heating, you:
- Emit fewer CO₂ emissions
- Contribute to the UK’s Net Zero by 2050 goal
Switching to a modern, energy-efficient boiler alone can cut emissions by 1.5 tonnes per year.
Who’s Eligible for ECO4?
You may qualify if:
- Your home’s EPC rating is D, E, F, or G
- You’re receiving certain government benefits:
- Universal Credit
- Pension Credit
- Child Tax Credit
- Housing Benefit
- Income-related ESA or JSA
- Working Tax Credit
Good news: Some households without benefits may still qualify under the LA Flex (Local Authority Flexible Eligibility) route if they have low income and high energy bills.
How to Apply for the ECO4 Scheme
- Check eligibility (online eligibility checker or through a registered ECO4 installer)
- Book a free home energy assessment
- Installer applies for funding on your behalf
- Get upgrades installed — often within weeks