The UK Government has officially confirmed that the Energy Company Obligation 4 (ECO4) scheme will be extended by nine months, with a new end date of 31 December 2026. This follows a public consultation held between August and September 2025, giving the energy efficiency and retrofit sector long‑awaited clarity and stability.
Why the ECO4 Scheme Has Been Extended
The extension is designed to:
- Support remediation activity
- Allow for a controlled and orderly closure of the scheme
- Provide suppliers with additional time to deliver required measures
Over 215 responses were submitted during the consultation, spanning energy suppliers, trade associations, and professionals across the retrofit industry. The high level of engagement directly informed the government’s final decision.
What Stays the Same Under the Extension
Despite the nine‑month extension, several aspects of the scheme remain unchanged:
✔ No Extension to the Great British Insulation Scheme (GBIS)
The GBIS will still close on 31 March 2026, with no plans to extend.
✔ No Increases to Delivery Targets
Suppliers must still work toward the same targets—there will be no uplift or carry‑over mechanisms beyond the revised end date.
✔ Solid Wall & EFG Requirements Unchanged
Minimum requirements for solid wall insulation and EFG (Eco-Flex Group) remain as they are until the new end date.
What the ECO4 Scheme Continues to Deliver
ECO4 places obligations on large energy companies to deliver energy‑saving measures designed to reduce household bills, such as:
- Loft, cavity, and solid wall insulation
- Efficient heating systems
- Renewable technology installations
This work is especially significant during a period where fuel poverty remains a pressing issue across the UK.
The Future: Transitioning to the Warm Homes Plan
Looking ahead, the Government has confirmed there will be no direct successor to ECO4. Future support will instead come through the Warm Homes Plan, a publicly funded programme promising £15 billion of investment aimed at helping millions of families access:
- Solar panels
- Heat pumps
- Battery storage
- Significant insulation upgrades
The shift to a tax-funded model aims to deliver wider and more consistent support across the UK.
Why This Extension Matters for Industry and Households
Before confirmation, uncertainty around ECO4’s end date caused hesitation across the retrofit sector—some even delaying training due to concerns about future work availability. With ECO4 now running until December 2026, both installers and households can move forward with confidence.
For eligible households, this extension provides additional time to access free or heavily subsidised energy‑efficiency upgrades that can:
- Reduce heating bills
- Improve comfort
- Increase property value
- Cut carbon emissions
