Glossary · UK
What is ECO4 Scheme?
The fourth phase of the Energy Company Obligation, requiring larger energy suppliers to fund home insulation and heating upgrades for low-income and fuel-poor households.
Full Definition
ECO4 is the fourth iteration of the Energy Company Obligation, a government scheme running from 2022 to March 2026 that places a legal obligation on larger domestic energy suppliers to fund energy efficiency and heating improvements in homes across Great Britain, with a particular focus on low-income and fuel-poor households living in the least energy-efficient properties (typically homes rated EPC band D or below). Measures funded under ECO4 can include loft, cavity wall and solid wall insulation, replacement of an inefficient heating system (including, in some cases, installing an air source heat pump), and other whole-house retrofit works, with the specific package tailored to what a property needs after a qualifying assessment, rather than offering a single fixed grant amount to every applicant. Eligibility is generally based on receipt of certain means-tested benefits (such as Universal Credit, Pension Credit or income-related Employment and Support Allowance) combined with living in a property that has a low energy efficiency rating, though local authorities can also refer households through an ECO4 Flexible Eligibility (LA Flex) route for people who are vulnerable to the cold or living in fuel poverty but do not receive a qualifying benefit. Because ECO4 works through individual energy suppliers rather than a single central government portal, homeowners and tenants (with landlord permission) typically apply through an accredited installer or a suppler-approved referral partner rather than applying to a single national scheme administrator.