Energy Company Obligation (ECO4) Scheme

Air Source Heat Pumps

Energy Company Obligation (ECO4) Scheme, a government-supported initiative, aims to help reduce household carbon emissions and provide more energy efficiency measures to UK homes.

What is the ECO4 Scheme?

A continuation of ECO3, the ECO4 scheme is part of the government’s commitment to making all housing stock more energy efficient by 2035. It delivers energy efficiency and heating measures to homes in Great Britain. The ECO4 scheme has a greater focus on low-income households and areas of high fuel poverty as only properties in bands D-G can be treated.

It is not a grant scheme, instead it is up to the energy companies to decide which retrofit projects they choose to fund, the level of funding that they will provide, and the installers and Retrofit Coordinator that they wish to work with.

The ECO4 Scheme was introduced by Government in April 2022 and will run until 31 March 2026.

What is covered in the ECO4 Scheme?

The ECO4 scheme covers a range of energy saving solutions. Some of the main measures are listed below:

  • Insulation – cavity wall, solid wall, room in a roof and loft insulation are some of the insulation measures available through ECO4
  • Air source heat pumps
  • Solar panels (only if a heat pump or biomass boiler has been ruled out first)
  • Boilers – repairs, replacements, and upgrades
  • Heating controls
  • Glazing

What are the eligibility requirements for the ECO4 Scheme?

Only the most energy-inefficient homes can benefit from ECO4, meaning that your property must have an Energy Performance Certificate (EPC) of D or lower.

You must also be receiving one of the following qualifying benefits:

  • Income based Jobseekers allowance
  • Income related Employment & Support Allowance
  • Income Support
  • Universal Credit
  • Child Tax Credit
  • Working Tax Credit
  • Pension Credit Guarantee Credit
  • Pension Credit Savings Credit
  • Housing Benefit
Funding for measures delivered under ECO4 cannot be used in conjunction with funding from other government schemes or grants, such as, the Warm Home Discount, Boiler Upgrade Scheme, or Social Housing Decarbonisation Fund, for example. Any measures outside of ECO4 delivered to the same property must be installed before the ECO4 retrofit project was started or after the project is completed and all measures have been installed.
Child benefit income thresholds for eco4

One criteria under the Energy Company Obligation (ECO4) scheme eligibility is the Child Benefit income threshold. This threshold is used to determine whether a household qualifies for energy efficiency measures under the ECO4 scheme.

Here’s a simple table outlining the Child Benefit income thresholds:

Number of Children or Qualifying Young PersonsSingle ClaimantMember of a Couple
4 or more£34,500£42,000

These thresholds represent the maximum gross income from all sources that a household can have to be eligible for ECO4 measures under the Child Benefit criteria. It’s important to note that the income considered here includes every person aged 18 or above living at the address, such as lodgers and elderly relatives.

Is ECO4 Right for You?

If you’re a homeowner and you meet the eligibility criteria, ECO4 could be a great way to improve your home’s energy efficiency and reduce your energy bills. However, it’s important to remember that the scheme is delivered by energy suppliers, so you’ll need to contact your supplier to find out more about how you can benefit from ECO4.

Remember, ECO4 is about more than just saving money. It’s about improving the energy efficiency of our homes, reducing our carbon emissions, and helping to tackle the important issue of fuel poverty. So, if you’re eligible, why not take advantage of this scheme and make your home more energy-efficient?

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How to apply

You cannot directly apply for ECO4 funds, this must be done through an energy supplier.

To apply for ECO4, contact energy suppliers and ask what measures they offer.


Please note that the information on this page may be subject to change over time. To ensure your utmost satisfaction, we advise you to conduct your own research.

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