Update (December 2026): The government has confirmed that the proposed ECO5 scheme has been cancelled. Instead, the existing ECO4 scheme has been extended until December 2026. This article has been updated to reflect what this means for households and energy efficiency support.
The UK’s Energy Company Obligation (ECO) scheme helps people save money on energy bills and makes homes more energy-efficient. While a new ECO5 phase was previously expected, it has now been cancelled, with ECO4 extended until December 2026.
This extension means that current support continues under ECO4, and households should focus on understanding existing eligibility rules and available measures rather than waiting for a new scheme. Below is a clear explanation of what this change means in practice.
What Is the ECO Scheme?
The Energy Company Obligation is a government-backed programme designed to help households save money on energy bills by improving the energy efficiency of their homes.
Under ECO4, eligible households can receive grants for measures such as home insulation, efficient heating systems, and low-carbon technologies. Although an ECO5 scheme was proposed, it will not be introduced. Instead, ECO4 will continue in its current form until the end of 2026.
Government grant uk
What the ECO4 Extension Means for Households
- Continued Support for Eligible Households – With ECO4 extended until December 2026, eligible low-income and vulnerable households still have access to funding for energy efficiency improvements. This provides certainty for those planning upgrades such as insulation or heating improvements.
- No Expansion to New Eligibility Groups – Because ECO5 has been cancelled, eligibility criteria are not being widened beyond the current ECO4 framework. Households that do not qualify under ECO4 are unlikely to gain access through this scheme.
- Focus on Vulnerable Groups Remains – ECO4 continues to prioritise households most affected by fuel poverty, including elderly residents, families with young children, and people with health conditions impacted by cold homes.
- Local Authority Flexibility Continues – Councils still play a role in identifying households in need through local eligibility routes, helping target support where it is most needed.
- Existing Application Process Still Applies – The ECO4 application process remains unchanged. Households should apply under current rules rather than waiting for a new scheme that will not be introduced.
- Support for Energy-Saving Measures – Funding continues for insulation and efficient heating technologies that can lower energy bills and improve long-term household comfort.
UK family
Main Goals of the ECO4 Scheme
- Reduce carbon emissions by improving home energy efficiency.
- Help eligible households save money on energy bills.
- Improve the overall energy efficiency of homes across the UK.
By extending ECO4, the government has opted for continuity rather than launching a new phase, keeping support in place while longer-term energy policy decisions are developed.
Home insulation grant
Wrapping Up the ECO Update
While ECO5 will not go ahead, the extension of ECO4 until December 2026 ensures that support for improving home energy efficiency remains available. Households that may be eligible should act under the current scheme rather than waiting for future changes.
Staying informed about how schemes like ECO4 work can help households make better decisions about energy improvements and avoid missing out on support that is already available.
