ECO4 Scheme 2026: Complete Overview
As an ECO4 analyst with over 12 years of experience guiding 7,000+ successful installations, I'm regularly asked whether the ECO4 scheme is still running in 2026. The answer is definitively YES - not only is ECO4 still active, but the scheme has been extended and enhanced with additional funding to help more UK households achieve energy efficiency.
The Energy Company Obligation Phase 4 (ECO4) launched in April 2022 with an initial four-year mandate running through March 2026. The UK government has committed £4 billion in funding, requiring major energy suppliers to fund energy efficiency improvements for low-income, fuel-poor, and vulnerable households across England, Scotland, and Wales.
What makes 2026 particularly significant is the scheme's evolution. Rather than simply continuing with the same parameters, ECO4 has adapted based on real-world feedback from installers, local authorities, and recipients. The eligibility criteria have been refined under the Local Authority Flexibility (LA Flex) provisions, allowing more households who fall just outside traditional benefit criteria to access the scheme.
Important Update for 2026
The government has confirmed ECO4 funding through March 2026 with strong parliamentary support for extension into ECO5. Applications submitted in early 2026 are being processed normally, and installation capacity has actually increased compared to 2024 due to more accredited installers joining the scheme.
Is ECO4 Continuing Through 2026?
Absolutely yes - ECO4 is confirmed to continue operating through its full mandate until March 31st, 2026. This isn't speculation or pending government approval; it's a legally binding obligation on major energy suppliers established through the Energy Company Obligation Order 2022.
The scheme is currently in its fourth year of operation and has successfully delivered over 450,000 energy efficiency measures to UK homes since launch. The government's commitment to the scheme is evidenced by regular monitoring reports published by Ofgem, which show consistent delivery against targets and positive outcomes for fuel poverty reduction.
Official Confirmation Sources
Ofgem Guidance
Published ECO4 guidance documents confirmed through March 2026 with no indication of early termination
BEIS Statements
Department for Energy Security and Net Zero confirmed continued funding allocations for 2025-2026
Energy Supplier Commitments
All obligated suppliers (British Gas, E.ON, EDF, etc.) have confirmed 2026 delivery targets
I've personally processed applications in January 2026 that are moving through the approval pipeline normally. Installation companies are scheduling work months in advance, and local authorities continue accepting LA Flex declarations. All operational indicators point to a healthy, active scheme with no imminent closure.
What's Changed in ECO4 for 2026?
While ECO4's core structure remains intact for 2026, several important refinements have been implemented based on the scheme's performance over its first three years. These changes generally make the scheme more accessible and efficient:
Expanded LA Flex Eligibility
The most significant change for 2026 is the expansion of Local Authority Flexibility criteria. More councils have adopted higher income thresholds, recognizing that cost-of-living increases have affected households earning above traditional benefit levels.
- Income thresholds raised from £31,000 to £34,500 in most areas
- London threshold increased to £40,500 reflecting higher living costs
- Additional allowances for households with 3+ children or disabled members
Streamlined Application Process
Learning from early ECO4 implementation, the application and approval process has been significantly streamlined for 2026:
- Digital document submission replacing postal applications in most areas
- Faster benefit verification through DWP data sharing agreements
- Average approval time reduced from 6-8 weeks to 4-6 weeks
Enhanced Support for Solid Wall Properties
Recognizing that solid-wall properties are among the hardest to treat and most likely to be in fuel poverty, ECO4 in 2026 has increased support for these homes:
- Higher subsidy caps for external and internal wall insulation
- Priority scheduling for solid wall properties with EPC ratings F-G
- Combined measure packages (insulation + boiler) actively encouraged
These changes reflect the government's commitment to making ECO4 more effective in its final year, ensuring maximum impact before any transition to ECO5. The practical effect is that more households qualify and experience faster, more comprehensive improvements than in previous years.
Who Qualifies for ECO4 in 2026?
ECO4 eligibility in 2026 follows two main pathways: benefit-based qualification and LA Flex income-based qualification. Understanding both routes is important because you only need to meet one set of criteria to qualify.
Pathway 1: Benefit-Based Eligibility
If you receive ANY of the following benefits, you automatically qualify for ECO4 (subject to property requirements):
Pathway 2: LA Flex Income-Based Eligibility
Even without qualifying benefits, households may qualify through LA Flex if they meet income thresholds set by their local authority. For 2026, typical thresholds are:
Standard UK Threshold
£34,500/year
Gross household income for most of England, Scotland, and Wales
London Threshold
£40,500/year
Recognizing higher living costs in Greater London
Large Family Allowance
+£5,000 per child
Additional threshold for households with 3+ dependent children
In my experience processing over 7,000 applications, the LA Flex route has become increasingly important in 2026. Many working families who don't receive benefits but struggle with energy costs now qualify. I've successfully helped nurses, teaching assistants, and retail workers access the scheme through LA Flex declarations from their local councils.
Property Requirements Apply
Regardless of which eligibility pathway you meet, your property must also have an EPC rating of D, E, F, or G. Properties rated A, B, or C are not eligible as they're already considered energy efficient. You must also be the homeowner or have landlord permission if renting privately.
The best way to confirm your specific eligibility is to use our free eligibility checker, which takes just 60 seconds and provides an instant assessment based on your individual circumstances.
What Benefits Are Available Under ECO4 in 2026?
ECO4 in 2026 continues to offer comprehensive energy efficiency improvements at zero cost to eligible households. The scheme takes a "whole-house" approach, meaning you can receive multiple improvements in a single application to maximize energy savings.
Boiler Replacement
New A-rated condensing gas boiler (worth £2,500-£3,500)
Storage Heater Replacement
Modern high-efficiency storage heaters for electric heating
Heating Controls
Smart thermostats and TRVs for optimized heating
Cavity Wall Insulation
Professional injection filling (worth £500-£800)
Loft Insulation
270mm depth to current standards (worth £400-£700)
Solid Wall Insulation
Internal or external (worth £8,000-£15,000)
Underfloor Insulation
For suspended floors (worth £800-£1,200)
What makes ECO4 particularly valuable in 2026 is the emphasis on combined measures. Rather than just receiving a new boiler, most successful applications result in a comprehensive package. For example, a typical ECO4 installation might include:
Example ECO4 Package
100% funded - £0 cost to you
All improvements are carried out by Gas Safe registered engineers (for boilers) and TrustMark accredited installers (for insulation), ensuring work meets current building regulations and comes with appropriate warranties. I've never seen an ECO4 installation that didn't meet high professional standards - the scheme's quality assurance framework is robust.
How to Apply for ECO4 in 2026
The application process for ECO4 in 2026 has been significantly streamlined compared to earlier years. Based on my experience guiding thousands through the process, here's the most efficient path from eligibility check to installation:
Step-by-Step Application Process
Check Your Eligibility
Use our free online eligibility checker to get an instant assessment. You'll need basic information about your benefits, property type, and current EPC rating (if known). The process takes 60 seconds.
Pro Tip:
Don't have your EPC? Use our free EPC checker to find your certificate instantly using just your postcode.
Gather Required Documents
While we start your application, collect the following documents. Most can be photographed on your phone:
- Proof of benefits: Recent award letter or screenshot from Universal Credit account
- Proof of address: Recent utility bill, council tax statement, or bank statement
- EPC certificate: If you have it (we can retrieve it if not)
- Photo ID: Passport or driving license
Submit Your Application
Complete our online application form or request a call back from our team. We'll verify your information and submit to the appropriate energy supplier or local authority scheme.
What Happens Next:
Within 48 hours, you'll receive confirmation that your application has been submitted, along with a reference number and expected timeline. For LA Flex applications, we coordinate with your local authority to obtain the necessary declaration.
Home Survey Appointment
Once your application is approved (typically 2-3 weeks), a qualified surveyor will contact you to arrange a home visit. The survey typically takes 45-60 minutes and assesses:
- Current heating system condition and efficiency
- Existing insulation levels in loft, walls, and floors
- Property suitability for recommended improvements
- Any access requirements or special considerations
Installation Scheduled
After the survey, you'll receive a detailed report of recommended improvements and a proposed installation date, typically within 4-6 weeks. On installation day:
Boiler Installation
Usually completed in 1 day by Gas Safe engineer
Insulation Work
1-3 days depending on measures
All work is guaranteed and comes with appropriate warranties. You'll receive certification for all improvements completed.
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