ECO4 ends 31 December 2026 — what replaces it in Lancaster
ECO4 has been extended once, to 31 December 2026, so suppliers can finish existing targets and fix faulty installs only. There are no new targets, no carry-over and no ECO5. The Great British Insulation Scheme closed to new applications on 31 March 2026.
In England the replacement for low-income households is the Warm Homes: Local Grant — a £500m scheme delivered by councils and their appointed installers from April 2025 to March 2028, for privately owned and privately rented homes rated EPC D to G where the council is taking part. Owner-occupiers can have insulation, heating and solar fully funded. Tenants pay nothing; a landlord gets one home fully funded, then contributes 50% from the second.
One of these three routes must apply:
- Household income of £36,000 a year or less before tax; or
- Someone in the home gets one of: Universal Credit, Pension Credit, Housing Benefit, Income Support, income-based Jobseeker's Allowance or income-related Employment and Support Allowance; or
- The home is in a postcode the government lists as among the most deprived (IMD deciles 1–2).
On top of one of those routes, the home must be rated EPC D to G and you must be an owner-occupier or a private tenant (with your landlord's consent — rented homes rated F or G need a registered MEES exemption). Social housing is not eligible.
Over 97% of eligible councils in England (271) are funded to deliver it, but funding and timing vary by area, and your council will usually contact you within 10 working days of a referral.
Check the Warm Homes route for Lancaster →You can also apply directly through the government's checker on GOV.UK.
Not eligible, or paying yourself? The Boiler Upgrade Scheme takes £7,500 off an air source or ground source heat pump for most homeowners replacing fossil-fuel heating in England and Wales, with no income test and no EPC needed since 28 April 2026 (£9,000 for an air or ground source heat pump in oil- or LPG-heated homes with no mains gas connection, until 31 March 2027). The £150 Warm Home Discount comes off your electricity bill again this winter, and if you are buying solar, 0% VAT applies until 31 March 2027 — get a solar quote from one MCS-certified installer. Need a like-for-like gas boiler? The Warm Homes: Local Grant cannot fund new gas boilers, so outside ECO4 you would pay an installer’s quote — ask your council about any emergency heating fund.
Energy Grants Available in Lancaster
If you live in the Lancaster council area, you could qualify for thousands of pounds in free energy improvements through government-funded schemes. With 15.8% of households in North West experiencing fuel poverty and average energy bills of £1,980/year, these grants can make a significant difference.
ECO4 Scheme in Lancaster
The ECO4 scheme can fully fund energy improvements for eligible households in Lancaster. This includes loft insulation, cavity wall insulation, solid wall insulation, boiler replacements, first-time central heating, solar panels, and heat pumps.
To qualify, you need to receive a qualifying benefit (Universal Credit, Pension Credit, Income-based JSA, Income-related ESA, Income Support or Housing Benefit — tax credits ended on 5 April 2025) and your home needs an EPC rating of D or below.
With 38% of homes in North West rated EPC E or below, many Lancaster properties are strong candidates for ECO4 funding.
ECO4 has been extended to 31 December 2026 to wind down, not to take on new targets: work must be finished before then, and installer capacity shrinks as suppliers meet their obligations. Check your eligibility now.
Great British Insulation Scheme (GBIS) in Lancaster
Until it closed on 31 March 2026, the Great British Insulation Scheme (GBIS) covered free insulation for homes in council tax bands A-D (England) or A-E (Scotland/Wales), with no benefits required. That route is no longer open to new applicants.
In Lancaster, approximately A-C (72% of properties) were in GBIS's qualifying council tax bands before it closed. That once put a large proportion of Lancaster residents within GBIS's old scope — and many can still get free loft or cavity wall insulation through ECO4 or LA Flex until 31 December 2026, then through the Warm Homes: Local Grant (household income £36,000 or less, no benefits needed).
Boiler Upgrade Scheme — £7,500 Grant
The Boiler Upgrade Scheme provides £7,500 towards an air source or ground source heat pump. Unlike ECO4, this grant has no means testing — it is for homeowners replacing fossil-fuel heating, and since 28 April 2026 a valid EPC is no longer required. Your MCS-certified installer applies for the grant on your behalf.
Lancaster Housing Profile
Understanding your area's housing stock helps identify which energy measures are most relevant:
- Terraced houses (33%): Often have party wall heat loss and benefit from loft + cavity wall insulation
- Semi-detached (28%): Higher heat loss through exposed walls — ideal for cavity or solid wall insulation
- Detached (18%): Highest potential savings from insulation (up to £590/year for loft alone)
- Flats (21%): Can qualify for individual measures; landlord consent needed for rented flats
40% of properties in North West have solid walls — these lose up to 45% of heat and can benefit from external or internal wall insulation through ECO4.
Lancaster Council LA Flex
LA Flex is a council route into ECO4, so it closes with ECO4 on 31 December 2026. The closest route after that — and open now — is the Warm Homes: Local Grant (household income £36,000 or less, no benefits needed).
Even if you don't receive qualifying benefits, Lancaster Council operates Local Authority Flex (LA Flex) provisions. This allows the council to refer households that are:
- In fuel poverty (spending more than 10% of income on energy)
- Living with health conditions worsened by cold homes
- On low incomes but not receiving standard qualifying benefits
- In areas identified as deprived by the council
Contact Lancaster Council's housing or energy efficiency team to ask about LA Flex referrals.
Estimated Savings for Lancaster Homes
- Loft insulation: saves £355-590/year
- Cavity wall insulation: saves £195-595/year
- Solid wall insulation: saves £430-640/year
- Boiler replacement: saves £300-400/year
- Solar panels: saves £800-1,100/year
- Heat pump: saves £100-300/year vs gas (more vs oil/electric)
Multiple measures combined through ECO4 can save over £1,500 per year.
Check Your Eligibility
Our free eligibility checker cross-references your details against all active schemes. Enter your Lancaster postcode, answer a few questions, and find out which grants you qualify for in 60 seconds.