What is the ECO5 Scheme?
The ECO5 Scheme refers to the proposed next phase of the UK’s Energy Company Obligation (ECO) energy efficiency support programme. In the past, each ECO iteration aimed to help households reduce energy use, slash carbon emissions, and improve home comfort as well as help the UK government achieve its goal of net-zero strategy.
However, in January this year, the government published information that the ECO scheme will be extended till 31 December 2026 with no ECO5 funding lined up to replace it.
So if you’re searching for the ECO5 scheme, be aware that it has been cancelled and ECO4 is your last real chance to get grant-funded energy efficiency upgrades.
There is no ECO5 you can apply for. Apply for ECO4 while it still exists.
Don’t wait for ECO5, it’s cancelled. Apply for ECO4 Scheme today while you can!
- Homeowners: The ECO4 Scheme is aimed at homeowners. Tenants can apply with landlord’s permission if they qualify. Landlords can encourage their tenants to apply (both parties need to agree).
- Income and Benefits: If your household has low income, and you receive qualifying benefits, you are likely to get it (no benefits? we may be able to help through other grants).
- Property Type and Condition: Prioritisation is given to households living in fuel poverty or with low Energy Performance Certificate EPC rating D and lower.
Understanding ECO5 Scheme
What happened to ECO5?
The ECO5 grant was a proposed continuation of the Energy Company Obligation, originally developed under successive UK Conservative governments, who have overseen the ECO framework since its introduction in 2010. It was aimed at reducing how much energy we use and increasing the use of clean energy sources like solar panels and heat pumps in homes in line with carbon saving obligation.
Rather than being a simple extension of ECO4 Scheme the ECO5 Scheme was expected to expand previous efforts by placing greater emphasis on environmental sustainability and carbon savings across the housing stock.
At the time, the Department for Business, Energy & Industrial Strategy highlighted the importance of schemes like ECO in supporting the UK’s goal of having zero net emissions by 2050, particularly by reducing emissions from domestic properties.
Timeline and What Changed
Under the original Conservative plans, ECO5 funding was expected to begin in 2026, following the end of ECO4, and potentially run towards the end of the decade in line with the UK’s Net Zero Strategy, including targets such as
68% reduction in greenhouse gas emissions by 2030 compared to 1990 levels.
Source: UK sets ambitious new climate target ahead of UN Summit
This decision means there will be no ECO5 replacement scheme under the existing ECO framework.
ECO4 scheme eligibility check – It only takes 2 minutes and no commitment
What This Means for Homeowners
With ECO5 cancelled, households cannot rely on future ECO funding. ECO4 is the last opportunity to access grant-funded energy efficiency improvements under the ECO programme.
Anyone eligible is strongly advised to apply before ECO4 funding ends, as there is no confirmed successor scheme offering equivalent support.
ECO4 Ends Soon – Act Now Before Funding Stops
The current ECO4 Scheme is still open for applications but ends on 31 December 2026. After that date, the obligation on energy suppliers to fund home measures under ECO finishes and there will be NO direct ECO5 replacement.
Which benefits qualify for the grant?
- Child Benefits (based on household income)
- Child Tax Credits (CTC)
- Housing Benefit NEW
- Income based Jobseekers allowance (JSA)
- Income related Employment & Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee Credit
- Pension Credit Savings Credit NEW
- Universal Credit (UC)
- Warm Homes Discount Scheme
- Working Tax Credit (WTC)
Who Can Apply for ECO Today?
Homeowners and tenants
- Homeowners can apply directly.
- Tenants can apply with landlord permission (both parties must agree). Landlords can also encourage eligible tenants to apply.
Income and benefits
- If your household is on a low income, and you receive qualifying benefits, you are often eligible.
- No benefits? You may still qualify through local authority flex (LAFlex) or other routes in some cases.
Property type and condition
- harder to heat
- in fuel poverty
- with a lower EPC rating (typically D, E, F or G)
Check if you can apply for ECO4 grant today.
Getting Involved: ECO5 Consultation and Public Input
Earlier in 2025, the government consulted with businesses, installers, energy suppliers and local authorities on the future of ECO5 Scheme and what should happen after ECO4.
In the Autumn Budget (November 2025), the government then confirmed its decision to end ECO funding from 31 March 2026, later extended to December 2026, meaning there will be no ECO5 Scheme to apply for in 2026 under the current plans.
ECO Scheme Preparation Tips
Steps to Take Now
What you can do now to apply for ECO4 before it ends (and not miss out by waiting for ECO5).
Audit your home’s energy consumption
Start by checking where your home uses the most energy. This could be heating, lighting, or old appliances that are not energy efficient.
Investigate renewable energy options
Look into which renewable energy systems such as solar panels or heat pumps can save you energy consumption and money.
Check home insulation
Enhancing your home’s insulation through ECO programs can reduce the need for heating and cooling, thereby lowering energy usage.
Stay informed
ECO5 is not something to wait for. Apply for ECO4 while you can, and we will guide you through the next steps.
ECO4 is a government backed scheme
FAQ, ECO5 grant explained
Who qualifies for an ECO5 grant?
No one. At the moment, there is no ECO5 grant to apply for and no confirmed eligibility rules. The government has indicated ECO will end after ECO4, so households should not plan around ECO5. If you think you may qualify for support, the best option is to apply for ECO4 while you can.
Is the ECO scheme still running?
Yes, the Energy Company Obligation (ECO) scheme is currently active, following the conclusion of the ECO3 Scheme in 2022. However the ECO scheme ends soon (due to finish in December 2026). If you are eligible, it is worth applying now before the window closes.
What is the ECO scheme in 2025-2026?
The ECO Scheme is in its fourth phase and will run until December 2026 as ECO4, which focuses on improving home energy efficiency primarily for low-income and vulnerable households. It includes measures such as insulation, heating upgrades, and possibly extending into renewable technologies. So check your eligibility – if you might qualify, it is best to check and apply now while you still can.
Who are UKES & what do we do?
UK Energy Support is run by a trusted North East installation company called UK Energy Management NE Ltd based in Sunderland, although we operate across the entire United Kingdom.
We are working in accordance with Ofgem regulations through a government-backed scheme and often with local authority offering no-cost home energy efficiency upgrades, fully funded by energy suppliers. Our mission is to lower heat loss in homes and reduce your energy bills in UK households before ECO4 final stage impact assessment.
Don't wait! Apply for ECO 4 Today
With ECO4 ending in December 2026 and no ECO5 to wait for, it’s worth acting now. You can still apply for ECO4 today so you don’t miss the current opportunity to improve your home energy efficiency, cut your bills, and reduce your home’s environmental impact.