What is the Warm Homes Plan?
The Warm Homes Plan is the UK government's replacement for the ECO4 scheme, launching in January 2027. With just under £15 billion in total investment, it represents the biggest energy efficiency programme in British history.
Unlike ECO4, which was a supplier obligation requiring energy companies to fund improvements, the Warm Homes Plan is funded by £1.5 billion in additional government grants, bringing total investment to nearly £15bn. This marks a fundamental shift from supplier-funded to government-funded energy efficiency support.
Key change: There will be no ECO5 or successor supplier obligation after ECO4 ends in December 2026. The Warm Homes Plan is the new model going forward.
£15 Billion — The Biggest Investment Ever
The Warm Homes Plan represents an unprecedented investment in UK energy efficiency:
- £1.5 billion in new government grant funding announced January 2026
- Nearly £15 billion total programme investment
- Largest energy efficiency programme in British history
- Focus on low-income households in fuel poverty
- New procurement arrangements launching April 2026
Timeline: What's Happening When
March 2026
GBIS (Great British Insulation Scheme) ends on 31 March 2026 as planned. No successor scheme — replaced by Warm Homes Plan in 2027.
April 2026
New procurement arrangements begin. Government starts setting up infrastructure for the Warm Homes Plan delivery model.
December 2026
ECO4 scheme ends on 31 December 2026 (extended from original March 2026 deadline). Final applications must be completed before this date.
January 2027
Warm Homes Plan launches. Government-funded grants replace supplier obligation model entirely.
What Homeowners Should Do NOW
If you're eligible for current schemes, do not wait for the Warm Homes Plan. Here's why:
- ECO4 ends December 2026: Current ECO4 funding closes permanently on 31 December 2026. There will be no ECO5.
- Processing takes time: Applications take 4-8 weeks from submission to installation. Apply now to secure funding before the deadline.
- Eligibility may change: The Warm Homes Plan targets low-income households in fuel poverty. Current ECO4 eligibility may not transfer to the new scheme.
- No funding gap guarantee: There may be a gap between ECO4 closing and Warm Homes Plan opening, just like there was between ECO3 and ECO4.
Action required: Check your ECO4 eligibility now and apply before funding runs out. Don't assume you'll qualify for the Warm Homes Plan.
Who Will Benefit from the Warm Homes Plan?
The Warm Homes Plan specifically targets:
- Low-income households — those on means-tested benefits or low earnings
- Fuel poverty households — homes spending more than 10% of income on energy
- Energy inefficient properties — homes with poor insulation and heating
- Vulnerable households — elderly, disabled, families with young children
Detailed eligibility criteria have not yet been published. If you currently receive benefits like Universal Credit, Pension Credit, or Income Support, you're likely to be in the target group.
How the Warm Homes Plan Differs from ECO4
| Feature | ECO4 (ending 2026) | Warm Homes Plan (from 2027) |
|---|---|---|
| Funding Model | Supplier obligation (energy companies required to fund) | Government grants (direct government funding) |
| Total Investment | ~£4bn (ECO4 phase) | ~£15bn (total programme) |
| Target Group | Low income + flexible eligibility | Low income households in fuel poverty |
| Procurement | Energy suppliers choose installers | New government procurement from April 2026 |
| End Date | 31 December 2026 | No end date announced |
What Measures Will Be Covered?
While full details haven't been published, the Warm Homes Plan is expected to fund similar energy efficiency measures to ECO4:
- Loft insulation
- Cavity wall insulation
- Solid wall insulation (internal and external)
- Floor insulation
- Boiler replacements and upgrades
- First-time central heating
- Air source heat pumps
- Solar panels (in some cases)
- Smart heating controls
The government has indicated the Warm Homes Plan will take a "whole house" approach to energy efficiency, similar to ECO4's methodology.
What Happened to GBIS and ECO5?
The government's January 2026 consultation response confirmed:
- GBIS ends 31 March 2026 as originally planned (not extended)
- ECO4 extended to 31 December 2026 (was due to end March 2026)
- No ECO5 or successor supplier obligation — the ECO framework is being replaced entirely
- The Warm Homes Plan replaces both schemes with a new government-funded model
This represents the biggest structural change to UK energy efficiency policy in over a decade.
Check Your Eligibility Now
Don't wait for the Warm Homes Plan. If you qualify for ECO4 or GBIS right now, secure that funding before it closes.
Use our free eligibility checker to find out which grants you qualify for today. Applications take 60 seconds, and we'll connect you with approved installers if you're eligible.