What is the difference between ECO3 and the new ECO4 scheme?

You may be eligible for funded home energy improvements under the Energy Company Obligation (ECO4) scheme that begins in August 2022 and runs until March 2026.

Learn about the changes to the legislation and find out if you qualify:


The ECO scheme has been delivered in the UK since 2013. Its aim is to ensure energy suppliers improve the energy efficiency of British homes by providing funding towards the cost of home energy improvements including the installation of different types of insulation and heating systems.

ECO4 is the fourth phase of the ECO scheme and it follows the highly successful third phase of the scheme (ECO3) which ended in March 2022. While the overall aim of ECO4 remains similar to that of ECO3, there are some noteworthy changes to the eligibility requirements and the way services are delivered under the scheme.

Changes to eligible benefits under ECO4


The following benefits did not qualify in ECO3, however they are now eligible in ECO4:

  • Housing Benefit
  • Income Support
  • Pension Credit Savings Credit

The benefits below were eligible under ECO3 but they are no longer eligible in ECO4:

  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Constant Attendance Allowance
  • Disability Living Allowance (DLA)
  • Industrial Injuries Disablement Benefit
  • Personal Independence Payment (PIP)
  • Severe Disablement Allowance
  • War Pensions Mobility Supplement

Changes to scheme delivery

Unlike in ECO3, the ECO4 scheme promotes a fabric first approach to home energy improvements. This involves assessing a property’s current energy efficiency band with the aim of increasing this by as many bands as possible with the installation of various insulation and heating measures.

To qualify for ECO4, properties must be in bands D – G; this rating is shown on a property’s Energy Performance Certificate (EPC). The minimum requirements for ECO4 state that:

  • Existing EPC bands of F or G must now be increased to at least a D rating
  • Existing EPC bands of D or E must now be increased to at least a C rating

Changes to funding for private rented tenants

While there have not been significant changes to the criteria for private rented sector tenants, the guidance in ECO4 suggests that a project may only be carried out on a rented property if the existing energy efficiency band is an E, F or G. Additionally, the property must be eligible for either First Time Central Heating or Solid Wall Insulation to qualify for other insulation or heating measures.

Limits to ECO4 boiler installations

In ECO4, the number of boiler grants that are available have been capped to 5,000 (across all suppliers). In comparison, almost 134,000 boilers were installed under ECO3. The rules about types of boilers that qualify under the scheme have also been tightened, including removal of LPG or oil boilers.

LA Flex changes under ECO4

The Local Authority Flexible Energy scheme (LA Flex) allows local authorities to offer funding for home energy improvements to individuals who are not in receipt of an ECO4 qualifying benefit.

In ECO4, suppliers can now deliver up to 50% of their obligation through LA Flex, which has increased from 25% under ECO3.

The Local Authority Flexible Eligibility (LA Flex) criteria for each local authority varies, so contact Arktek who will be able to advise if you qualify via this route.

As you can tell, there are several factors which need to be carefully considered when applying for ECO4 funding, however, we are here to help. Simply fill in our short form to find out if you qualify for funded home energy improvements under ECO4!

Arktek are a team of North East based Gas Safe engineers, accredited insulation installers, and a proud installer of ECO4 and LA Flex funded measures to help you save on energy bills.

Get in touch to discuss how we can help you apply for funding for energy improvements in your home.

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