What Is ECO Funding?
ECO stands for Energy Company Obligation—a government-backed scheme that requires larger energy companies to help households reduce their carbon emissions and lower energy bills. The scheme funds energy efficiency improvements such as insulation, heating upgrades, and renewables in homes across the UK.
Who Is ECO Funding For?
ECO funding is aimed at helping:
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Low-income or vulnerable households
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People receiving qualifying benefits (like Universal Credit or Pension Credit)
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Homes that are poorly insulated or expensive to heat
Some funding is also available for homeowners or landlords with tenants who meet the criteria.
Types of ECO Funding Available in 2025
The latest version of the scheme is called ECO4, running from 2022 to 2026. Here are the main elements:
✅ ECO4 (Main Scheme)
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Focuses on improving the least energy-efficient homes (EPC bands E, F, and G).
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Prioritises a fabric-first approach—insulation before new heating systems.
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Covers loft insulation, cavity wall insulation, solid wall insulation, smart heating controls, and efficient boilers (especially heat pumps and renewable tech).
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Includes a “Minimum Requirement” that homes must be improved to EPC band C or D depending on the starting point.
✅ ECO4 LA Flex (Flexible Eligibility)
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Local Authorities can refer households who don’t receive benefits but are still in need (due to income, health, or energy costs).
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This makes it more accessible to low-income families who fall through the gaps of traditional benefit criteria.
✅ Great British Insulation Scheme (GBIS)
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Launched in 2023 as an extension of ECO for single-measure insulation jobs.
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Simpler and faster to access for homes with basic insulation needs (e.g. loft or cavity wall).
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Available to both general and low-income groups, depending on property EPC and council tax band.
How Do I Apply for ECO Funding?
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Check your eligibility: This can be based on benefits, income, or your local authority’s LA Flex rules.
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Find an approved installer: Use the Ofgem website or a trusted local provider.
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Have a retrofit assessment carried out: This will determine what your home needs and what measures are covered.
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Apply through the installer: They will handle the paperwork and funding application.
Tip: Always check if the installer is TrustMark-registered and certified to work under the ECO scheme.
How Much Could You Save?
Depending on your current heating and insulation levels, ECO measures can save households:
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£250–£1,000 per year on energy bills
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Increase your property’s EPC rating
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Improve warmth, comfort, and even health outcomes
️ Popular Upgrades Covered by ECO4
| Measure | Typical Coverage | Suitability |
|---|---|---|
| Loft Insulation | 100% | Most homes built before 2000 |
| Cavity Wall Insulation | 100% | Homes with cavity walls pre-1990 |
| Solid Wall Insulation | Partial/Full | Older homes without cavity walls |
| Air Source Heat Pumps | Partial | Homes with high heat loss |
| Smart Heating Controls | 100% | Any central heating system |
| Solar Panels (PV) | Limited cases | Certain rural/low-income homes |
Why Is ECO Important?
The UK has a legal commitment to net zero carbon emissions by 2050. Improving the energy efficiency of homes is a huge part of this goal. ECO schemes support this mission while also fighting fuel poverty, creating jobs, and reducing household bills.
Want Help with ECO4 or GBIS?
If you’re unsure where to start or want help with your eligibility check, we’re here to guide you. Get in touch for a free consultation and home assessment.
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