Energy Company Obligation Explained

The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain designed to tackle fuel poverty and help cut carbon emissions. It obligates energy suppliers to deliver energy efficiency and heating measures to households.

It offers Great Britain residents non-refundable financial support from your energy supplier if you choose to make your home more energy efficient.

In other words, you can have your home’s heating system or insulation upgrade fully funded through government energy grants! Read on to find out who is eligible to receive it and how UK Energy Support can help you apply and upgrade your home’s energy efficiency.

ECO is currently running on its fourth (AND LAST) version of the scheme, so make sure you apply for the grant before it’s no longer available.

We’ve covered ECO4 scheme (and its predecessor ECO3 scheme) in previous articles articles as well as Carbon Saving Obligation if you want to find out why the government implemented thi scheme in the first place.

Energy Companies Obligation Applications are now open for: July 2024

Are you eligible for Energy Company Obligation grant?

We may be able to improve your home’s energy efficiency measures for FREE if you own/rent a property that is electrically heated and receive the correct combination of income-related benefits. You are likely to qualify if:

  • You are a Homeowner or a Private Tenants
  • You or your household member receives Income-Related Benefits
  • Your property is electrically heated
Energy Company Obligation funding review

To learn if your current energy supplier qualifies to provide ECO, contact us today.

What is ECO funding?

Energy Company Obligation funding obligates energy suppliers to deliver power usage efficiency and heating measures to British households. As a result, households can keep their houses warmer, reduce their energy bills, and reduce carbon emissions.

Over 2.4 million energy efficient home improvements have been completed in around 1.8 million homes since the scheme launched in January 2013. The government report on Household Energy Efficiency shows that homes improved under ECO save, on average, £290 per year.

What are the main obligations?

The policy requires obligated suppliers to improve low-income households’ capacity to heat their houses, through measures such as replacing old heating systems or insulating homes to fulfil carbon saving obligation.

How does Energy Company Obligation work?

The plan requires obligated suppliers to work with installers like UK Energy Support to increase energy efficiency in your home through insulation and electric room heaters to electric storage heaters replacement grant, among other energy saving measures.

To take advantage from the schemes, all you need is to follow these 3 steps:

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Step 1 – Find out if you’re eligible

Start by answering several questions to find out if you’re eligible to receive the fund.

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Step 2 – Book a Survey

Once you get a confirmation that you’re eligible, we will get in touch to book a survey of your home to find out which home improvements can be completed as part of the schemes.

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Step 3 – Installation

Once it’s been confirmed that your home is suitable for improvements, all there’s left is to agree the installation date, after which you can enjoy reduced gas and electricity bills!

What is the ECO3 grant?

ECO3 Scheme was the third phase of the ECO Energy Company Obligation, which started on December 3rd, 2018 and ended in April last year.

Its industrial strategy was focused on helping the most vulnerable households and those living in fuel poverty.

What is ECO4 scheme?

ECO4 scheme is the fourth and final phase of the Government’s Energy Company Obligation currently being rolled in and continue until 2026. It focuses on increasing the energy-efficiency rating (EPC) of properties after measures have been installed. In addition, the Government introduced a number of changes to the eligibility criteria, such as removing some disability benefits that qualify for the grant.

What is ECO5 scheme?

ECO5 Scheme is the upcoming fifth phase of the Government’s Energy Company Obligation, starting after ECO4 ends in 2026. It aims to reduce carbon emissions by focusing on renewable energy solutions and revising eligibility to prioritize homes with higher emissions for greater environmental impact.

What is GBIS?

The Great British Insulation Scheme (GBIS) is an extension of the UK’s Energy Company Obligation (ECO) initiative. While ECO3 and ECO4 focused on broader energy efficiency measures, GBIS specifically targets insulation improvements in homes.

The scheme was introduced to address gaps in the ECO programme, ensuring that more households can benefit from enhanced insulation.

By honing in on insulation, GBIS aims to further reduce energy bills and carbon emissions. It represents the government’s commitment to refining and expanding energy-saving initiatives based on evolving needs.

What happend after March 2022?

In April 2022, the face of OFGEM’s ECO scheme began its transformation, transitioning from version 3 to 4. Under the 4th iteration, there was a pronounced emphasis on aiding the least energy-efficient homes in enhancing their heating controls. All households were mandated to adhere to the new minimum government energy efficiency scheme standards.

The Energy Company Obligation (ECO) plan persisted in its focus on lower-income, vulnerable, and fuel-poor households. However, it’s worth noting that some of the benefits that previously made households eligible for the government scheme were no longer applicable.

Which benefits no longer qualify for the funding?


Armed Forces Independence Payment


Attendance Allowance


Carer's Allowance


Constant Attendance Allowance


Disability Living Allowance (DLA)


Industrial Injuries Disablement Benefit


Personal Independence Payment (PIP)


Severe Disablement Allowance


War Pensions Mobility Supplement


Warm Home Discount Rebate

Energy Company Obligation funding review ECO4 document

What energy efficiency improvements can be installed?

The list of improvements that energy companies could support in order to meet the targets is long. The environment energy co. obligation requirements aim to cover full costs of energy efficiency improvements. Here at UK Energy Support, we deliver:

What does the ECO scheme cover?

There are several factors determining whether your property is eligible for improvement, including its construction year and the number of floors it has. It also depends on whether you are a homeowner or private tenant and claim income-related benefits to take advantage of the full funding. Landlords can’t apply, however, they can encourage their tenants to do so.

Who qualifies for an ECO grant?

The government grant is only available to homeowners (or private tenants who have permission from their landlord). You can check whether you qualify for the Energy Company Obligation ECO scheme by applying below. You are under no obligation to proceed with the installation at this stage.

Who is eligible for the ECO4 scheme?

Low-income and vulnerable households are given priority. An applicant must either own their house or have the permission of their landlord in order to qualify for the fund. One of the following benefits may qualify you for the ECO:

Qualifying benefits criteria for an ECO4 grant:


Child Tax Credits


Child Benefits


Housing Benefit (NEW)


Income-based Jobseeker's Allowance


Income-based Employment & Support Allowance


Pension Credit Guarantee Credits


Pension Credit Saving Credits (NEW)


Universal Credit


Income Support


Warm Home Discount


Working Tax Credits

Cavity wall insulation

Can I get the home improvements for free?

Yes, that is the whole point of the Energy Company Obligation scheme. As long as you meet the above criteria, you can have your home’s heating efficiency improved free of charge. If you’re eligible for the government grant, we can replace or install new insulation of loft, cavity wall, solid/internal wall, room in roof or replace your old electric radiators with modern energy efficient heater. However, you won’t be able to reclaim money back for any measures you may have installed yourself.

How can I apply for the ECO funding?

It’s straightforward. Click on the button below to find out if you’re eligible for the grant. After verifying your answers, we will get in touch with you to advise which energy efficiency measure can be installed in your home as part of the ECO funding, so you don’t have to pay for it.

How much funding can I get?

The grant from Energy Company Obligation may as well be called Home Heating Cost Reduction Obligation because it obligates the energy providers to improve the energy-efficiency of properties. How many improvements can be introduced to your property depends on your property’s EPC rating.

If you meet certain benefits, your energy efficiency improvements can be fully paid by your energy supplier (find out more about British Gas cavity wall insulation). Get in touch for further information and find out how we can help you. The lower it is (EPC rating D and below) the more likely you are to receive the grant.

See if you qualify for Energy Company Obligation funding.

Loft insulation application

Which energy suppliers participate in Energy Company Obligation?

Medium size and large energy suppliers with more than 150,000 customers fit the government energy efficiency scheme measures through approved installers like us.

If your current energy supplier is not on the list, don’t worry, you may still qualify for the government energy support grant. Just fill in our form, and we will get back to you to confirm whether you meet enough of the other criteria to benefit from the Energy Company Obligation energy saving grant.

What is the ECOFLEX scheme (LA Flex)?

The Ecoflex or LA Flex scheme stands for Flexible Eligibility and is an extension of the Energy Company Obligation scheme in Great Britain.

LA Flex is provided through some local authorities and councils, giving them more control in deciding eligible households in their particular area; this can help people in rural areas who might be more likely to not qualify.

How does LA Flex work?

You can qualify for LA Flex if you’re not on any benefit on the grounds of your age, low income and health circumstances. Further information about LA Flex, can be found on  your local council’s website.

Energy Company Obligation ECO is a government scheme

UK GOV website address

Apply Today & reduce your carbon Emissions

Here at UK Energy Support, we want to help as many people as possible improve their energy consumption. We would be happy to help you in any way we can, so get in touch and start saving on your energy bill with the funding from Energy Company Obligation.