When exactly does ECO4 end?
ECO4 ends on 31 December 2026. The Department for Energy Security and Net Zero (DESNZ) confirmed the date in its response to the "Extending the ECO4 end date" consultation, published on 23 January 2026. The scheme had been due to close on 31 March 2026. The government extended it by 9 months, so energy suppliers have more time to meet their targets and the supply chain can focus on fixing non-compliant installations.
The Energy Company Obligation (ECO4) is a scheme that requires large energy suppliers to fund energy efficiency upgrades in low-income and vulnerable households. Ofgem administers it. The extension did not raise suppliers' targets, and the solid wall minimum requirement stays at its existing level. Suppliers must meet it by 31 December 2026, so solid wall insulation jobs, both internal and external, remain in demand until the scheme closes. Each supplier sets its own cut-off dates for completing and reporting jobs, and these can fall well before the scheme end date. Installers should confirm cut-off dates with the supplier or managing agent they work for, rather than assuming 31 December.
The Great British Insulation Scheme (GBIS), which funded single insulation measures, was not extended. It ended as planned on 31 March 2026.
Is there going to be an ECO5?
No. The government's January 2026 response states plainly that there will be no successor supplier obligation to ECO4. There will be no carry-over arrangements into a new obligation either. ECO, which began in 2013, ends with ECO4. Future support for low-income households will come from grants funded by the government, not from obligations placed on energy suppliers.
The same response committed £1.5 billion in additional grant funding for upgrading low-income households, aimed at those in fuel poverty. For installers, the change matters more than the headline figure. The money will reach them through councils and government grant schemes, not through energy suppliers and the managing agents who coordinated ECO work.
What replaces ECO4?
ECO4 is replaced by the Warm Homes Plan, which DESNZ published in January 2026 and last updated on 18 March 2026. The plan commits £15 billion of public investment over this Parliament, to 2030, to upgrade up to 5 million homes. Support for low-income households will be brought together into a single scheme from 2027/28. Until then, the main live route for insulation on low-income homes in England is the Warm Homes: Local Grant.
| Scheme | Status (October 2026) | Who runs it | What it funds |
|---|---|---|---|
| ECO4 | Closes 31 December 2026 | Energy suppliers, administered by Ofgem | Insulation and heating upgrades in low-income homes |
| Great British Insulation Scheme | Closed 31 March 2026 | Energy suppliers, administered by Ofgem | Single insulation measures |
| Warm Homes: Local Grant | Open until 31 March 2028 | Local authorities in England, funded by DESNZ | Insulation and low-carbon heating in low-income, privately owned homes |
| Boiler Upgrade Scheme | Open; funded in the Warm Homes Plan | Ofgem for DESNZ | Grants towards heat pumps and biomass boilers |
| Consolidated low-income scheme | Planned from 2027/28 | To be confirmed | Will replace separate low-income schemes |
How does the Warm Homes: Local Grant work?
The Warm Homes: Local Grant is a £500 million government scheme, delivered by local authorities in England, that funds energy upgrades in privately owned homes. The homes must be occupied by low-income households and have an EPC rating of D to G. It runs from 1 April 2025 to 31 March 2028. According to the June 2026 policy guidance, 74 projects covering 271 local authorities received funding.
The key numbers from the DESNZ policy guidance (updated June 2026):
| Rule | Detail |
|---|---|
| Household income | Below £36,000 gross a year, or one of two other eligibility routes (living in one of the most deprived areas, or qualifying through benefits) |
| Property | EPC rating D to G; privately owned (owner-occupied or privately rented) |
| Cost cap: energy performance upgrades | £16,600 per home (averaged across a project) |
| Cost cap: low-carbon heating | £16,600 per home (averaged across a project) |
| Owner-occupier contribution | None required |
| Private landlords | First home fully funded; 50% contribution for each additional home |
| Delivery window | 1 April 2025 to 31 March 2028 |
The cost caps rose in the June 2026 update. Many guides still quote the earlier £15,000 caps, so check the date of any source you rely on.
How does the Warm Homes: Local Grant work in Greater Manchester and the West Midlands?
Greater Manchester and the West Midlands do not take part in the national Warm Homes: Local Grant. The Greater Manchester Combined Authority (GMCA) and the West Midlands Combined Authority (WMCA) each received their share of the grant through an integrated settlement, a single devolved funding deal with government, and run their own retrofit programmes. The DESNZ guidance lists all 10 Greater Manchester councils as unable to join the national scheme. These include Manchester, Salford, Stockport, Bolton and Wigan.
For installers based in the North West, that changes how you find grant-funded work. Contracts in Greater Manchester come through GMCA's devolved programme, not through the national scheme's local authority projects. DESNZ also funds a free support service called RISE (Retrofit Information, Support and Expertise). The guidance says RISE can help supply chain companies gain the accreditations needed for government-funded work, such as PAS 2030, PAS 2035, TrustMark and MCS.
Will installers still need TrustMark and PAS 2030 after ECO4?
Yes. The Warm Homes: Local Grant guidance requires all upgrades to follow PAS 2035:2023. Installers must be TrustMark registered and certified under the latest version of PAS 2030, or by MCS, for the measures they install. Every measure must also be lodged on the TrustMark Data Warehouse. The quality standards that applied under ECO4 carry over to the grant schemes replacing it.
This means the qualifications installers built up for ECO4 work stay valuable. Operatives still need vocational competence for each measure under PAS 2030:2023. For internal wall insulation, that means the Level 3 NVQ in Insulation and Building Treatments, or enrolment on one, within a 1-in-4 team ratio. Our guide to what qualifications you need to install internal wall insulation explains the rules. The guide to PAS 2030 vs PAS 2035 explains how the two standards split the work.
What should insulation installers do before ECO4 closes?
Insulation installers should finish and report ECO4 jobs well ahead of supplier cut-offs and build relationships with the councils delivering Warm Homes grants. They should also make sure their TrustMark registration, PAS 2030 certification and operative qualifications are current. Grant-funded work is won through council frameworks and procurement, not through ECO managing agents, so businesses that relied on ECO pipelines need new routes to work.
A practical checklist for the next 10 weeks:
- Confirm your ECO4 cut-off dates with each supplier or managing agent in writing, and schedule remaining installs before them.
- Close out remediation work. The extension exists partly to fix non-compliant installs, and outstanding issues can delay final payments.
- Check your certifications: TrustMark registration, PAS 2030:2023 scope for every measure you install, and MCS if you fit low-carbon heating.
- Audit operative qualifications against PAS 2030:2023 ratios, and enrol threshold operatives on recognised NVQ programmes now.
- Find your local Warm Homes: Local Grant delivery partners. The scheme is run by local authority projects across 271 councils, many through procured contractors. In Greater Manchester and the West Midlands, go to the combined authority's devolved programme instead.
- Watch for the consolidated low-income scheme due from 2027/28, and register for DESNZ updates.
Frequently asked questions
Can homeowners still apply for ECO4 in late 2026?
Homeowners can still be referred for ECO4 until suppliers stop accepting jobs, but supplier and installer cut-offs fall before 31 December 2026. Homes that miss ECO4 may qualify for the Warm Homes: Local Grant through their local council, if the household is low-income and the home is rated EPC D to G.
Does the Warm Homes: Local Grant cover Scotland and Wales?
No. The Warm Homes: Local Grant is for homes in England only. Scotland and Wales run their own home energy schemes, and the Warm Homes Plan includes separate funding for the devolved administrations.
Will solid wall insulation still be funded after ECO4?
Yes. Solid wall insulation is an eligible energy performance upgrade under the Warm Homes: Local Grant, within the £16,600 per-home cap for energy performance upgrades. The guidance sets a non-binding aim for upgraded homes to reach EPC band C.
Do I need MCS or PAS 2030 for grant-funded work?
It depends on the measure. Insulation and other energy efficiency measures need PAS 2030 certification. Heat pumps and other low-carbon technologies are covered by MCS. The Warm Homes: Local Grant accepts either, but installers must be certified for the specific measures they fit, and must be TrustMark registered.
New to the sector? See how to become a retrofit installer in the UK.
How Nexis Academy can help
Nexis Academy is a City & Guilds Approved Centre (T91185) in Manchester, delivering practical internal wall insulation training aligned to PAS 2035 and PAS 2030. If you need to qualify operatives before the next phase of funded work, see our internal wall insulation course or contact our team.
New heating route? See how to become a heat pump installer.
Sources
- Department for Energy Security and Net Zero, Extending the ECO4 end date: government response, 23 January 2026.
- Department for Energy Security and Net Zero, Warm Homes Plan, updated 18 March 2026.
- Department for Energy Security and Net Zero, Warm Homes: Local Grant policy guidance, updated June 2026.