Great news for UK homeowners struggling with high energy bills: the Energy Company Obligation (ECO4) scheme has been extended through to March 2026, giving thousands more households the opportunity to receive free insulation and other energy efficiency upgrades. If your home is draughty, expensive to heat, or has a poor EPC rating, you could qualify for fully funded improvements worth thousands of pounds. Insulation is just one piece of the puzzle — discover all the ways to cut costs in our top 10 energy-saving tips.
Key Takeaways
- ECO4 has been extended through March 2026 with additional funding
- Eligible households can receive 100% free insulation including loft, cavity wall, and external wall
- Average savings of £300–£600 per year on energy bills after insulation
- Properties with EPC ratings of D, E, F, or G are eligible
- Enviro-Energy handles the entire application and installation process
What Is the ECO4 Scheme?
The Energy Company Obligation (ECO4) is a UK government programme that requires large energy suppliers to fund energy efficiency improvements in homes across England, Scotland, and Wales. Originally set to run from April 2022 to March 2026, the scheme has now been confirmed to continue with additional budget allocation, ensuring more households can benefit.
Unlike previous versions of the scheme, ECO4 takes a “whole-house” approach. This means rather than just installing a single measure, your home is assessed holistically and may receive multiple upgrades to achieve the greatest possible improvement in energy performance. The goal is to bring properties up to at least an EPC Band C where practical. ECO4 can also fund heating upgrades — see our 2025 heat pump grants guide for details on how to get up to £7,500 towards a heat pump installation.
What’s New in the Extension?
The 2025 extension brings several important updates that make the scheme more accessible and beneficial:
Increased Budget
Additional £1 billion allocated to ensure more households can access free insulation and heating upgrades through 2026.
Wider Eligibility
Local authority flex eligibility has been expanded, meaning more households on low incomes can now qualify even without specific benefits.
More Measures Available
The range of funded measures has been broadened to include room-in-roof insulation, underfloor insulation, and smart heating controls.
Faster Processing
Streamlined application processes mean shorter waiting times from application to installation, typically 4–8 weeks.
Do You Qualify? Full Eligibility Guide
There are two main routes to qualifying for free insulation under ECO4: through benefits or through local authority referral.
Route 1: Benefits-Based Eligibility
You automatically qualify if you (or someone in your household) receives any of the following:
Route 2: Local Authority Flex (LA Flex)
Even if you don’t receive the benefits listed above, your local council may refer you under the LA Flex pathway. This is designed for households that are on a low income, in fuel poverty, or vulnerable to the effects of cold homes. Criteria vary by council but typically include:
- Household income below £31,000
- Property with an EPC rating of D, E, F, or G
- Residents with health conditions worsened by cold (respiratory, cardiovascular, mobility issues)
- Households with children under 5 or adults over 65
Property Requirements
| Property Type | EPC Required | Tenure |
|---|---|---|
| Owner-Occupied | D, E, F, or G | Eligible |
| Private Rented | D, E, F, or G | Eligible (landlord consent needed) |
| Social Housing | E, F, or G only | Eligible |
What Insulation Measures Are Covered?
Under ECO4, a range of insulation and energy efficiency measures can be installed completely free of charge. The specific measures recommended for your home will depend on your property assessment:
| Measure | Typical Value | Annual Saving |
|---|---|---|
| Loft Insulation | £500 – £1,500 | £180 – £250/yr |
| Cavity Wall Insulation | £1,000 – £2,500 | £200 – £310/yr |
| External Wall Insulation | £8,000 – £15,000 | £350 – £500/yr |
| Internal Wall Insulation | £5,000 – £10,000 | £300 – £450/yr |
| Room-in-Roof Insulation | £2,000 – £5,000 | £200 – £350/yr |
| Underfloor Insulation | £1,000 – £3,000 | £100 – £180/yr |
How to Apply with Enviro-Energy
Applying for free insulation through ECO4 is straightforward when you work with an approved installer like Enviro-Energy. Here’s how the process works:
Free Eligibility Check
Call us on 0800 689 4105 or fill in our online form. We’ll ask a few simple questions about your property and circumstances to confirm eligibility within minutes.
Home Survey
A qualified surveyor visits your property to assess which insulation measures will deliver the best results. This is completely free and takes around 30–45 minutes.
Funding Approval
We submit your application to the energy supplier funding the work. Approval typically takes 2–4 weeks. You don’t need to do any paperwork.
Professional Installation
Our certified installers carry out the work at a time that suits you. Most insulation jobs are completed within 1–3 days with minimal disruption. You pay nothing.
Real Savings from Real Homes
The impact of proper insulation on energy bills is significant. Here are some real examples from Enviro-Energy customers in the Liverpool and Merseyside area:
£480
Annual Saving
3-bed semi, Crosby — Loft + Cavity Wall
£620
Annual Saving
4-bed detached, Bootle — External Wall
£340
Annual Saving
2-bed terrace, Anfield — Loft Insulation
Frequently Asked Questions
Is the insulation really free?
Yes. If you meet the eligibility criteria, the full cost of materials and installation is covered by energy supplier funding. There are no hidden charges or future payments.
I’m a private tenant. Can I still apply?
Yes, private tenants can apply. You’ll need written consent from your landlord, which we can help you obtain. Many landlords are happy to agree as it improves their property’s EPC rating at no cost to them.
How long does the whole process take?
From initial enquiry to completed installation, the typical timeline is 4–8 weeks. The installation itself usually takes 1–3 days depending on the measures being installed.
Will the work cause much disruption?
We keep disruption to an absolute minimum. Loft insulation is done from the loft hatch, cavity wall insulation is injected from outside, and our teams always clean up thoroughly after every job.
Can I combine ECO4 with solar panels?
Absolutely. Many homeowners pair ECO4 insulation with a solar PV installation for maximum savings. Insulation reduces the energy you need, while solar generates free electricity — a powerful combination. See how one Liverpool family saved £1,200 a year with solar after insulating their home.
Check Your ECO4 Eligibility Today
Don’t miss out on free insulation worth thousands of pounds. Our friendly team will check your eligibility in minutes and handle everything from survey to installation. Call free on 0800 689 4105.