What Replaced ECO4? The Warm Homes Plan Explained
ECO4 — the scheme behind years of free UK insulation and heating upgrades — ends on 31 December 2026. Here is exactly what replaced it, who now qualifies for help, and how the new Warm Homes Plan differs from the scheme it succeeds. If you want to see which grants your home is eligible for, our grant eligibility checker runs the numbers in under a minute.
Muhammad founded KilowattKit after spending hours trying to decode confusing electricity bills and realising there were no clear, jargon-free tools for ordinary homeowners. He researches energy rates, solar payback, EV charging, and heat pump economics across the US, UK, Canada, and Australia — sourcing every figure directly from official government and regulatory data.
⚡ Key takeaways
- ✓ECO4 was extended by nine months and now ends 31 December 2026 — there is no ECO5.
- ✓Its successor is the Warm Homes Plan, funded by direct government grants rather than an energy-supplier levy.
- ✓The main route for households is the Warm Homes: Local Grant, run through local councils — up to around £30,000 per property.
- ✓Eligibility widened: income under ~£36,000 or a means-tested benefit, plus an EPC rating of D–G.
- ✓The Boiler Upgrade Scheme (£7,500, or £9,000 for off-gas homes) continues separately for heat pumps.
ECO4 is Ending — the Timeline
ECO4 (the fourth phase of the Energy Company Obligation) has funded free insulation, heating repairs, and in some cases solar panels for lower-income households since 2022. It was originally scheduled to close in March 2026, but the Department for Energy Security and Net Zero confirmed a nine-month extension in late 2025.
Crucially, there will be no ECO5. The government has decided not to renew the supplier-obligation model at all. Instead, funding moves to a directly-funded programme — the Warm Homes Plan. You can still apply for ECO4 grants right up to the December 2026 deadline if you qualify.
What Replaced ECO4? The Warm Homes Plan
The Warm Homes Plan is the government's flagship home-energy programme and the effective successor to ECO4. First announced at £6.6 billion, it was significantly expanded in the 2026 Spring Budget to around £13.2 billion over this parliament — described by ministers as the biggest home energy-efficiency push in British history.
It is not a one-for-one swap for ECO4. The two schemes work in fundamentally different ways:
- →ECO4 was paid for by a levy that energy suppliers added to everyone's bills, then spent on qualifying homes.
- →The Warm Homes Plan is paid for by direct government grants, delivered mainly through local councils rather than energy suppliers.
For most households, the part that matters is the Warm Homes: Local Grant — the strand aimed at owner-occupiers and private renters in England. (Social housing is funded through a separate Warm Homes: Social Housing Fund.)
Warm Homes Plan vs ECO4: What Changed
| Feature | ECO4 (ending Dec 2026) | Warm Homes: Local Grant |
|---|---|---|
| Funded by | Levy on energy suppliers | Direct government grants |
| Delivered by | Energy suppliers / installers | Local councils |
| Who qualifies | Means-tested benefit + poor EPC | Income under ~£36k or a benefit, + EPC D–G |
| Typical cap | Varies by measure | Up to ~£30,000 per property |
| Measures | Insulation, heating, some solar | Insulation, solar, heat pumps, battery (whole-house) |
| Applies to | Great Britain | England (devolved nations run own schemes) |
Final eligibility thresholds and caps are set per local authority and can vary. Figures reflect government guidance as of July 2026.
Who Qualifies for the Warm Homes: Local Grant?
The widened eligibility is the biggest practical change from ECO4. In broad terms, you may qualify if all three of the following apply:
Because ECO4 effectively required you to be on a specific benefit, many working households on modest incomes missed out. The income-based route means more people now qualify — including some who were just above the old benefit thresholds. Renters can benefit too, with the grant paid to the landlord and rent protected from increases as a result of the work.
What's Covered and How Much
The Warm Homes: Local Grant takes a whole-house view — a survey decides the mix of measures that will lift your EPC most. Eligible measures include:
💡 Energy efficiency (up to ~£15,000)
- Loft, cavity, and solid-wall insulation
- Draught-proofing and ventilation
- Solar PV panels
- Battery storage (in some packages)
🔥 Low-carbon heating (up to ~£15,000)
- Air-source heat pumps
- Heating controls and upgrades
- Hot-water improvements
For lower-income households the works are typically fully funded, with no contribution required. The combined cap of roughly £30,000 per property is far higher than most single ECO4 measures — reflecting the whole-house, deeper-retrofit ambition of the new programme.
How to Apply
- 1Check your EPC. Find your current rating on the government EPC register — you'll need D–G to qualify.
- 2Check income and postcode. Confirm your household income and that your council is running the scheme (rollout is phased).
- 3Apply via gov.uk or your council. Unlike ECO4, applications go through your local authority, not an energy supplier.
- 4Free survey. An approved installer assesses your home and recommends measures; approved works are carried out at no cost to eligible households.
If your council hasn't opened its scheme yet, and your home is inefficient, it's worth checking whether you qualify for ECO4 before it closes in December 2026.
What About the Boiler Upgrade Scheme and Other Grants?
The Warm Homes Plan doesn't replace every scheme. Several run alongside it, and they're often the better route if you don't qualify on income:
- →Boiler Upgrade Scheme — a flat £7,500 towards a heat pump (temporarily £9,000 for off-gas homes), open to almost any homeowner regardless of income.
- →Great British Insulation Scheme — supplier-delivered insulation for a broader range of households.
- →0% VAT on solar panels, batteries, and heat pumps — available to everyone, no application needed.
Answer a few quick questions about your home, income, and heating — our free checker shows which UK schemes (Warm Homes, ECO4, Boiler Upgrade Scheme and more) you may qualify for. No email required.