Everything You Need to Know About ECO4 Grants

The UK government’s ECO4 scheme is one of the most significant initiatives aimed at tackling fuel poverty and reducing carbon emissions. It’s a grant-funded programme designed to help low-income households make their homes more energy-efficient without having to bear the high upfront costs.

Whether you’re a homeowner, tenant, or landlord, this guide will cover everything you need to know about ECO4 grants — from eligibility requirements to the types of improvements covered, application steps, and tips to maximise your chances of approval.

What is the ECO4 Scheme?

The Energy Company Obligation (ECO) is a government energy efficiency programme that began in 2013. The current phase, ECO4, runs from April 2022 to March 2026 and focuses on upgrading homes with poor energy performance ratings (EPC D-G).

The aim is to:

Reduce energy bills for households in fuel poverty
Lower carbon emissions in line with the UK’s net-zero goals
Improve the health of residents living in cold, damp homes

Unlike a loan, ECO4 is a grant — you don’t have to pay it back. The funding comes from large energy suppliers who are legally obligated to help improve energy efficiency in the UK.

Who is Eligible for ECO4 Grants?

ECO4 targets low-income households and vulnerable groups. Eligibility depends on your household income, benefits, and the energy performance of your property.

You may qualify if:

You receive one of the following benefits:
- Universal Credit
- Pension Credit Guarantee Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Tax Credit
- Working Tax Credit
- Housing Benefit
- Income Support
Your property has an EPC rating of D, E, F, or G
- ECO4 prioritises homes that are poorly insulated and waste a lot of heat.
You are a homeowner, private tenant, or social housing tenant
- Landlords can apply on behalf of their tenants if the property meets the criteria.
You have a low household income (generally under £31,000/year even without benefits)

Types of Improvements Covered by ECO4

The ECO4 grant covers a range of energy-saving home improvements at no cost or a heavily reduced cost:

1. Insulation

Loft insulation
Cavity wall insulation
Solid wall insulation (internal or external)
Underfloor insulation

2. Heating Upgrades

Replacing old, inefficient boilers
Upgrading to modern heating systems
Air source heat pumps (low-carbon heating)

3. Renewable Energy

Solar PV panels to generate electricity

4. Draught Proofing

Sealing gaps in windows, doors, and floors to stop heat loss

Benefits of ECO4 Grants

Applying for ECO4 funding comes with long-term advantages:

Lower Energy Bills – Efficient homes require less heating.
Improved Comfort – No more cold rooms or draughty spaces.
Better Health – Reduced risk of damp-related illnesses.
Eco-Friendly – Contribute to the UK’s net-zero target.
Increased Property Value – Better EPC ratings boost market value.

How to Apply for ECO4 Grants

Applying for ECO4 is straightforward, but you must provide accurate information and ensure your property meets the criteria.

Step-by-Step Process:

Check Your Eligibility
- Use an online ECO4 eligibility checker or contact a registered installer.
Get an EPC Assessment
- If your EPC rating is already known and low (D–G), you can proceed.
Choose a Registered ECO4 Installer
- Only approved installers can carry out ECO4-funded work.
Submit Your Application
- Provide proof of benefits or income
- Share property details and EPC rating
Home Survey
- An installer visits your property to check what improvements can be made.
Installation
- Work is completed, usually within 2–4 weeks of approval.
Post-Installation Check
- The installer verifies everything meets government standards.

ECO4 vs ECO3: What’s Changed?

ECO4 has expanded eligibility compared to ECO3. The main changes include:

Longer Duration – Runs until March 2026
Focus on Whole-House Upgrades rather than single measures
Stronger Emphasis on Vulnerable Households not receiving benefits
Higher Funding Allocation per property

How to Increase Your Chances of Approval

To improve your chances of getting ECO4 funding:

Gather documents early (proof of benefits, income, EPC)
Work with reputable, approved installers
Be flexible with installation dates
Highlight any health conditions worsened by cold homes

Common Myths About ECO4 Grants

Myth 1: ECO4 is a loan – False. It’s a grant, not repayable.
Myth 2: Only homeowners can apply – False. Tenants and landlords can apply.
Myth 3: You must be on benefits – False. Low-income households can still qualify.

Conclusion

The ECO4 scheme is a golden opportunity to upgrade your home for free or at minimal cost while reducing your bills and helping the environment. If you think you might be eligible, apply as soon as possible — funding is limited, and demand is high.