The end of ECO4 and what it means for clients
Billpayers to save an average of £150 on energy bills from April 2026
The Government’s Autumn Budget announced that households can expect energy bills to fall by around £150 a year on average from April 2026. This reduction comes alongside plans to scale back certain environmental and energy-efficiency schemes currently funded through energy bills.
One major change is the closure of the Energy Company Obligation (ECO4) scheme, which has helped homeowners access free energy efficiency improvements since July 2022. ECO4 will officially end on 31 March 2026.
How will this affect my bills?
ECO4 previously appeared as a charge on consumer’s energy bills, as although energy companies are required by law to pay for ECO, they are allowed to pass that cost on to customers. At the same time, households will also pay less towards the Renewables Obligation scheme from 1 April 2026, which has funded investments in renewables such as installations of solar farms.
Cutting these schemes will result in a reduction in bills (mostly for the electricity), with unit rates dropping to the following figures:
· Electricity: down 3.37p/kWh (3.54p including VAT).
· Gas: down 0.31p/kWh (0.35p including VAT).
What does this mean for ECO4 and current applicants?
The ECO4 scheme, funded by energy suppliers, has provided essential energy-efficiency upgrades to low-income and vulnerable households. By reducing fuel poverty, cutting energy bills, and improving warmth and comfort, it has been a lifeline for those most at risk.
Through ECO4, eligible households have benefited from modern heating systems such as heat pumps and upgraded boilers alongside grants for critical insulation measures, including loft and solid wall insulation. For families living in cold homes with limited incomes and no means to self-fund improvements, the scheme has transformed living conditions, health, and overall wellbeing.
ECO4 Case Study
ECO4 has made a tangible difference for our clients. Mr T, who is 51 years old living in Newark and Sherwood, previously relied on a small log burner as his only source of heat and regularly bleached his windows and bathroom to manage mould. Through ECO4, he received full grant funding for an air source heat pump, solar PV panels and cavity wall insulation at no cost to him.
Make it stand out
“You used to be able to see your own breath. Now it’s warm throughout.”
“I’d absolutely recommend it. Absolutely amazing.”
The support delivered made a total savings of £27,041 in one year, including installation costs and estimated energy bill savings. More importantly, it transformed his day-to-day life. With consistent heating throughout his home and improved insulation reducing heat loss, his health and wellbeing have significantly improved.
While installations may continue beyond the closure of the scheme on 31st March, no new applications will be received from this date onwards to on board new clients. It is expected that in the weeks before the 31st March, applications for new residents will be reduced due to funding restrictions.
Following the Government consultation launched on 29 August 2025, which proposed extending the ECO4 obligation window by 6–9 months into late 2026, installations and remediation works may continue beyond the original deadline, with ECO4 technically running until the end of December 2026 to allow completion of already-agreed work and processing of existing applications.”
Lower Bills, But Fewer Home Improvements
We welcome the news that the price of energy bills will be £150 lower as of April 2026. However, the decision to withdraw funding from schemes such as ECO4 is concerning for households that rely on this support to improve the energy efficiency of their homes. For many families, these upgrades cost thousands of pounds and are simply unaffordable without financial assistance. Furthermore, as the ECO scheme has been running since 2013, the reduction in funding in the retrofit sector will have a significant impact on the sector as a whole.
It is disappointing to hear of the scheme closing as these programmes address the root causes of high energy bills by improving the fabric of homes and installing efficient heating systems. Whilst it seems like bad news, the chancellor has announced an additional £1.5 billion for the Warm Homes Plan (Energy Saving Trust 2025).
What Support Is Still Available?
If you’re worried about staying warm this winter, help is available:
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A Government funded programme which provides energy efficiency upgrades and low-carbon heating via local authority funding, to households across England.
The energy-saving upgrades available (often referred to as ‘measures’) range from Loft Insulation, Cavity Wall Insulation, Internal and External Wall Insulation, Solar PV Panels and Air Source Heat Pumps. Available measures will vary by Local Authority, funding availability and are subject to the technical assessment conducted on your property.
We can advise you on whether you are eligible for the scheme, which is determined by meeting the criteria for the property and the resident.
To find out more, click here.
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You can future-proof your home’s heating with an air source heat pump grant.
The BUS is a government-funded initiative providing grants to help cover the cost of installing low-carbon heating systems, from biomass boilers to air source heat pumps. The grant is paid directly to the certified installer, who applies the discount to your install costs. You could save:
£7,500 towards the install of an air source heat pump.
£5,000 towards the install of a biomass boiler
To find out more about BUS, head to our HEAT Hub advice page: https://www.homeenergyadviceteamhub.uk/bus
Check out our energy saving tips, with quick and easy changes to make around the home that can improve comfort and reduce your energy bills.
Get in Touch
We offer a one-stop-shop support package for heating, bills, and wellbeing. We offer practical energy saving solutions and can see whether you’re eligible for funding, Government grants, boiler health checks, water bill discounts, National Grid’s Priority Services Register and more.