ECO4 ends 31 December 2026 — what replaces it
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 your home →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 for Low Income Households
If you're a low income household, you may qualify for free or heavily subsidised energy upgrades through government schemes. These energy grants for low income households can cover the full cost of insulation, heating improvements, and renewable energy systems.
Understanding Fuel Poverty
A household is considered to be in fuel poverty if:
- They have required fuel costs that are above average
- Were they to pay that amount, their remaining income would be below the official fuel poverty line
- This is typically defined as spending more than 10% of income on energy
In England, a household is considered fuel poor if they have an income below 60% of the median after housing and energy costs and live in a home with an energy rating of band D or below.
LA Flex — Energy Grants Without Benefits
LA Flex (Local Authority Flexibility) allows councils to set their own criteria for energy grants. This means low income households can qualify without receiving benefits.
Each council publishes its LA Flex routes in a Statement of Intent. They typically include:
- Route 1: gross household income under £31,000, regardless of household size
- Proxy routes, such as living in a low-income area or meeting other low-income indicators
- A referral from the NHS or a GP for a health condition made worse by a cold home
- A bespoke route approved by Ofgem
The home usually also needs a poor energy rating. Check your council's Statement of Intent for its exact criteria.
Key Point: You don't need to be on benefits to qualify through LA Flex. If you're struggling with energy bills, apply to find out.
GBIS — Council Tax Route
The Great British Insulation Scheme offered another path to free energy upgrades (it closed to new applications on 31 March 2026) for low income households through council tax bands:
- England: Council tax bands A-D
- Scotland/Wales: Council tax bands A-E
GBIS focused on insulation. For low income households now, the Warm Homes: Local Grant income route (household income £36,000 or less, no benefits needed, EPC D–G) is the replacement in England.
Income Thresholds for Energy Grants
Each scheme sets its own income test:
| Scheme | Income test |
|---|---|
| Warm Homes: Local Grant (England, to March 2028) | Gross household income of £36,000 or less (or a means-tested benefit, or a qualifying postcode) |
| LA Flex Route 1 (until 31 December 2026) | Gross household income under £31,000, regardless of household size |
| ECO4 (until 31 December 2026) | A means-tested benefit, such as Universal Credit or Pension Credit |
What Energy Upgrades Can Low Income Households Get?
Depending on your eligibility, low income households can receive:
How to Apply for Low Income Energy Grants
- Check Eligibility — Use our free checker for low income energy grants
- Provide Information — About your income, property, and circumstances
- Home Survey — An assessor visits to recommend measures
- Installation — Approved measures are installed; they can be fully funded for eligible households, but the installer may ask for a top-up
Important: Funding and council participation vary by area, so check what your council offers.
Who Counts as a Low Income Household?
You may qualify as a low income household if:
- Your annual income is below the thresholds set by your local council
- You receive means-tested benefits
- You have high energy costs relative to your income
- You live in a property with poor energy efficiency
Frequently Asked Questions
Can I apply if I don't receive benefits?
Yes. The Warm Homes: Local Grant qualifies you on household income of £36,000 or less with no benefits needed (England, to March 2028). LA Flex also does this until it closes with ECO4 on 31 December 2026. GBIS, the old council-tax route, closed on 31 March 2026.
How long does the application take?
The eligibility check takes 60 seconds. After a referral, timings depend on your council and installer; for the Warm Homes: Local Grant, GOV.UK says your council will usually contact you within 10 working days.
Do I need to be a homeowner?
No. Private tenants can apply with their landlord's consent. Social housing is not eligible for the Warm Homes: Local Grant.
Are there any costs?
Often not. Measures can be fully funded for eligible households, but an ECO4 installer may ask for a top-up, and under the Warm Homes: Local Grant private landlords pay 50% from their second property onwards. Tenants and owner-occupiers on the Warm Homes: Local Grant pay nothing.