Why there is no ECO5
ECO, the Energy Company Obligation, has run in several versions, each replacing the last. That is why many people expect ECO4 to be followed by ECO5.
This time it is different. The government has confirmed that there will be no successor supplier obligation to ECO4. Instead of requiring energy suppliers to fund home improvements, it is putting more money into grant schemes for lower-income households.
When ECO4 ends
ECO4 ends on 31 December 2026. Two details matter:
- Work must be completed, not just started. Measures only count if they are finished by the day the scheme ends.
- Suppliers decide what they fund. Being eligible has never guaranteed the work.
The Great British Insulation Scheme, which ran alongside ECO4, closed on 31 March 2026.
If you think you qualify for ECO4, check now
A survey, design and installation take weeks. Our ECO4 page explains who qualifies, and the ECO4 eligibility checker gives a quick, preliminary answer.
What is available instead
| Scheme | Where | Who it is for | What it funds |
|---|---|---|---|
| Warm Homes: Local Grant | England | Lower-income households in homes rated EPC D to G | Insulation, solar panels, batteries and heat pumps |
| Boiler Upgrade Scheme | England and Wales | Property owners, with no income test | £7,500 towards an eligible air source or ground source heat pump |
| Warmer Homes Scotland | Scotland | Households struggling to heat their home who meet the scheme’s conditions | Insulation, heating and home renewables |
| Home Energy Scotland Grant and Loan | Scotland | Homeowners, with no benefits test | Grants and interest-free loans for heat pumps and insulation |
| Nest | Wales | Lower-income owner-occupiers and private tenants | Heat pumps, insulation and solar panels |
England: the Warm Homes: Local Grant
The Warm Homes: Local Grant is the main replacement for most ECO4 households in England. Councils deliver it, and it funds insulation, solar panels, batteries and heat pumps for lower-income households in homes rated EPC D to G. Delivery runs to 31 March 2028.
It is not identical to ECO4:
- It does not fund gas boilers. ECO4 could replace broken heating with a boiler in some cases. The Local Grant funds low-carbon heating only.
- It depends on your council. Each council plans its own project and can run out of funding.
- Social housing is generally not covered. Social landlords use the separate Warm Homes: Social Housing Fund.
The eligibility routes are similar: a means-tested benefit, a gross household income of £36,000 or less, or a home in an eligible postcode.
England: a single scheme from 2027/28
The Warm Homes Plan says the government intends to combine the Warm Homes: Local Grant and the Social Housing Fund into a single low-income scheme from 2027/28. The details have not been published, and nothing can be applied for yet. Our Warm Homes Plan page tracks it.
England and Wales: the Boiler Upgrade Scheme
The Boiler Upgrade Scheme is not affected by ECO4 closing. It pays £7,500 towards an eligible air source or ground source heat pump for property owners, with no income test, and has been extended to 2030. It is a contribution towards the cost, not full funding.
Scotland
ECO4 covers Scotland until it ends. After that, the Scottish schemes remain: Warmer Homes Scotland, for households struggling to heat their home who meet its conditions, and the Home Energy Scotland Grant and Loan, which is open to homeowners whatever their income. Our guide to grants in Scotland covers both.
Wales
ECO4 covers Wales until it ends, and the Welsh Government has confirmed there will be no GB-wide replacement. The main route for lower-income households is Nest, which provides free improvements after a home assessment. The Welsh Government reports a surge in applications to Nest since ECO4’s closure was announced, so expect to wait. See our guide to grants in Wales.
Northern Ireland
ECO covers Great Britain, not Northern Ireland, so nothing changes there. Northern Ireland has its own schemes.
If you were hoping ECO4 would pay for a boiler
After ECO4 closes, neither of the main schemes in England, the Boiler Upgrade Scheme and the Warm Homes: Local Grant, funds a replacement gas boiler. In Scotland and Wales a boiler can be replaced in limited cases. Our free boiler grant page sets out what each scheme does.
Be careful with “ECO5” offers
No scheme called ECO5 exists
If someone offers you “ECO5 funding”, treat it with caution. Genuine schemes never ask for a fee to reserve or release a grant. Check any offer against the official scheme page, or use the GOV.UK checker for the Warm Homes: Local Grant.
ECO4 and the Boiler Upgrade Scheme compared
If you are deciding between the two before ECO4 closes, our ECO4 vs Boiler Upgrade Scheme guide sets them side by side.
Check which schemes you could use
Tell us what heats your home and whether you own it. We will take you to our eligibility check, which covers the Boiler Upgrade Scheme, the Warm Homes: Local Grant and ECO4, with those answers filled in. It is free, and nothing is sent until you choose to send it.
