The UK energy efficiency sector has spent years helping households improve comfort, reduce bills, and cut carbon emissions through the Energy Company Obligation (ECO). Naturally, many homeowners and landlords expected a new phase – often referred to as ECO5 Scheme – to follow on from the current scheme.
Instead, the government confirmed that ECO will conclude after the ECO4 extension ends in December 2026.
While this came as a disappointment to much of the industry, it also creates a clear and time-limited opportunity for eligible households to benefit while funding is still available.
Why ECO5 Did Not Go Ahead
ECO5 was never formally launched or published. Instead, the government chose to extend ECO4 until December 2026 and then bring the scheme to a close.
This decision reflects a change in policy direction, not a rejection of energy efficiency itself. Ministers have signalled a move toward new delivery models under future Warm Homes and energy-bill support plans, rather than continuing the supplier-obligation structure that ECO is based on.
Importantly, this shift does not change the value of properly delivered ECO work, or the benefits households continue to receive today.
ECO4 Is Still Live - and Fully Funded
The current scheme, Energy Company Obligation Phase 4 (ECO4), has been officially extended to 31 December 2026 by the UK government.
That means:
• Grant funding is still available
• Installations are still being approved
• Households can still receive major upgrades at little or no cost
Measures supported under ECO4 include:
• Cavity Insulation
• Loft insulation
• Heating upgrades, including heat pumps and efficient electric systems
• Smart heating controls
For eligible households, this can mean warmer homes, lower energy bills, and improved EPC ratings.
A Strong Track Record Matters More Than Ever
Not all ECO delivery is the same. As the scheme approaches its final phase, quality, experience, and compliance are more important than ever.
We have delivered ECO installations to high standards, with a focus on:
• Correct assessment and suitability
• Qualified installers
• Long-term performance, not shortcuts
• Clear customer support before and after installation
For households, this means peace of mind – and confidence that improvements are built to last.
Why Acting Now Is Important
• Installer capacity will tighten
• Approval timelines may lengthen
• Funding will eventually close permanently
Once ECO4 ends, these grants will no longer be available in their current form.
If you think you may be eligible, waiting could mean missing out altogether.
Looking Ahead: Uncertainty After ECO
The government has stated that energy efficiency remains a long-term priority. However, it is disappointing that ECO has been scrapped without a confirmed replacement scheme being announced.
At the time of writing, there is no clear successor programme to ECO, no published eligibility rules, and no confirmed funding model for what comes next. This lack of clarity creates uncertainty for households who may need support, as well as for the supply chains that deliver these improvements.
What is clear is that ECO4 runs until December 2026 and then ends.
For many households, this may be the last opportunity to receive major energy efficiency improvements fully funded through a national scheme.
Under ECO4, eligible households may still be able to access upgrades such as:
• Insulation improvements (loft, cavity wall, where suitable)
• Air source heat pumps (ASHPs)
• Electric storage heater upgrades
• Modern heating controls and efficiency measures
If you qualify for the grant, these measures can be installed at no cost to the customer. Once ECO4 funding closes, there is no guarantee that similar support will be available again.
