ECO5 vs ECO4: What's Changed?
Having guided thousands of homeowners through ECO4 applications over the past 3 years, I can confidently say ECO5 represents the most significant improvement in UK energy efficiency grants since the scheme's inception in 2013. The government has listened to feedback from both homeowners and industry professionals, addressing key pain points around eligibility, funding levels, and processing times.
Side-by-Side Comparison
| Feature | ECO4 (2022-2026) | ECO5 (2026-2030) |
|---|---|---|
| Total Budget | £4 billion | £6.6 billion (+65%) |
| Eligibility Basis | Benefits-based only | Benefits + Income thresholds |
| Income Limit | Not applicable | Up to £36,000/year |
| Average Grant | £5,000 | £7,500 (+50%) |
| Maximum Grant | £10,000 | £15,000 (+50%) |
| Processing Time | 12-16 weeks | 8-10 weeks (-37%) |
| Landlord Eligibility | Very limited | Expanded access |
| Property Types | Standard dwellings | + Park homes, houseboats |
| Renewable Priority | Encouraged | Mandatory targets |
| Digital Application | Partial | Fully digital with tracking |
Expert Insight: The most transformative change is the income-based eligibility. Under ECO4, working families earning £25,000-£35,000 were often excluded despite struggling with energy bills. ECO5 corrects this, potentially helping 8 million additional households qualify for support.
Understanding ECO5 Income Thresholds
The introduction of income thresholds is ECO5's most significant policy shift. For the first time, UK households can qualify based on earnings rather than solely on receiving qualifying benefits. This change recognizes that many working families face fuel poverty despite earning above benefit thresholds.
£22,000
Maximum annual household income
Typical qualifiers:
- • Part-time workers
- • Pensioners with savings
- • Self-employed low earners
£30,000
Combined annual household income
Typical qualifiers:
- • Both partners part-time
- • One full-time, one not working
- • Retired couples
£36,000
Combined annual household income
Typical qualifiers:
- • Two working parents
- • Single parent full-time
- • Blended income families
Important Income Calculation Rules
Gross Income Before Tax
Income thresholds are based on gross earnings before tax and National Insurance deductions
All Household Members Combined
Include earnings from all adults (18+) living in the property, even if not related
12-Month Assessment Period
Based on previous tax year (April-April) or last 12 months of payslips
Self-Employment Income
Use net profit from most recent tax return (SA302 form) or accountant's certification
Benefits and Pensions
State pension and non-means-tested benefits (PIP, DLA, Attendance Allowance) do NOT count toward income
What Measures Does ECO5 Cover?
ECO5 expands the range of eligible energy efficiency measures, with strong emphasis on renewable heating technologies. The scheme prioritizes whole-home retrofits that combine insulation improvements with modern heating systems for maximum carbon reduction and bill savings.
Air Source Heat Pumps
Grant: Up to £10,000 | Savings: £1,200/year
Most popular renewable heating choice for UK homes
Ground Source Heat Pumps
Grant: Up to £12,000 | Savings: £1,400/year
Higher efficiency, requires suitable garden space
A-Rated Condensing Boilers
Grant: Up to £3,000 | Savings: £400/year
Traditional gas option for properties unsuitable for heat pumps
Biomass Boilers
Grant: Up to £8,000 | Savings: £900/year
Ideal for rural properties with wood pellet access
Cavity Wall Insulation
Fills gap between external and internal walls with insulating material
Solid Wall Insulation (External)
Adds insulated cladding to exterior walls of solid-wall properties
Solid Wall Insulation (Internal)
Insulated plasterboard fitted to interior walls
Loft Insulation (270-300mm)
Mineral wool or foam insulation to recommended depth
Room-in-Roof Insulation
Insulation for converted loft spaces with sloped ceilings
Underfloor Insulation
Insulation boards or spray foam under suspended floors
Smart Heating Controls
Up to £300
Solar Thermal Hot Water
Up to £2,000
Secondary Glazing
Up to £1,500
Hot Water Tank Insulation
Up to £200
Draught Proofing
Up to £150
Energy-Efficient Lighting
Up to £100
How to Prepare Your ECO5 Application Now
Although ECO5 doesn't officially launch until April 2026, there are several strategic steps you can take now to ensure you're first in line when applications open. Based on my experience processing thousands of ECO4 applications, early preparation can reduce your waiting time by 4-6 weeks.
ECO5 requires a valid Energy Performance Certificate (EPC) rated D-G (or C upgrading to A/B with renewables). If your EPC is older than 10 years or you don't have one, get it updated now.
- Check existing EPC: Visit gov.uk/find-energy-certificate
- Cost: £60-£120 for domestic EPC assessment
- Timeframe: Book assessment 2-3 weeks before application
- Pro tip: If your current EPC rating is C, consider measures that could achieve A/B post-installation to qualify under new rules
The new income-based eligibility requires comprehensive proof of earnings for all household members. Start collecting these documents now:
Employed Workers Need:
- • Last 3 months of payslips (showing gross income before tax)
- • P60 from most recent tax year
- • Employment contract showing annual salary
Self-Employed Need:
- • SA302 tax calculation from latest return
- • Accountant's letter confirming annual income
- • Business bank statements (last 3 months)
Benefit Recipients Need:
- • Benefit award letter (dated within 12 months)
- • Universal Credit statement showing monthly amounts
- • Pension Credit notification letter
ECO5 requires proof of property ownership or landlord permission if renting. Prepare documentation now to avoid delays:
- Homeowners: Council tax bill, mortgage statement, or Land Registry title deed
- Private tenants: Written landlord consent + tenancy agreement showing minimum 12 months remaining
- Social housing: Tenancy agreement showing housing association or council as landlord
- Landlords applying: Proof of ownership + tenant details + benefit verification consent form
ECO5 applications must be submitted through Ofgem-approved installers. Pre-registering your interest ensures priority processing when the scheme launches.
How to Pre-Register:
- 1.
Complete our eligibility checker
Takes 5 minutes, provides instant preliminary assessment
- 2.
Speak with an ECO5 specialist
Request Quick Call Back for personalized eligibility review
- 3.
Submit preliminary documentation
Upload EPC, income proof, and property documents to secure priority queue position
- 4.
Receive ECO5 launch notification
We'll contact you immediately when applications open in April 2026
ECO5 grants vary significantly depending on measures chosen. Understanding which combination maximizes your grant and savings is crucial.
Optimal Strategy: Whole-Home Retrofit
Combining multiple measures in a single application maximizes grant funding and energy savings:
Example Package for 3-Bed Semi:
- • Air source heat pump: £10,000
- • Cavity wall insulation: £1,800
- • Loft insulation upgrade: £800
- • Smart heating controls: £300
- Total Grant Value: £12,900
- Total Annual Savings: £1,650
- Payback Period: Immediate (fully funded)
Pro tip: Schedule a pre-installation survey now to determine which measures best suit your property. Our engineers provide free assessments and recommend optimal combinations for maximum savings.
Get instant assessment and personalized grant estimate in under 5 minutes