The short answer
ECO4 is the fourth phase of the Energy Company Obligation, a UK government scheme that requires larger energy suppliers to fund energy-efficiency improvements — including loft insulation — in low-income and vulnerable households. It targets the least efficient homes (low EPC bands) and aims to lift them to a better rating through a package of measures. Eligibility usually rests on receiving a qualifying means-tested benefit, with a local-authority referral route (LA Flex) for some households without one. The work is delivered by approved installers and is typically free or heavily subsidised for those who qualify.
ECO4 is the main route to fully funded insulation for lower-income homes in Great Britain. Here is how the scheme is structured and what it covers.
ECO4 at a glance
- Full nameEnergy Company Obligation, phase 4
- Funded byObligated energy suppliers
- Target homesLow EPC band, low income
- Main testQualifying means-tested benefit
- CoversLoft insulation + wider measures
How ECO4 works
ECO is a government obligation placed on larger energy suppliers to deliver energy-saving improvements in people's homes. ECO4 is the current phase, administered by the regulator Ofgem. Rather than a cash grant paid to households, the funding flows through the suppliers, who pay approved installers to carry out measures in eligible homes.
A distinctive feature of ECO4 is its whole-house, fabric-first approach. It does not just fund a single measure in isolation; it aims to improve a home's overall energy rating, often delivering a package — for example loft insulation alongside cavity or solid wall insulation and heating improvements — so the property moves up the EPC bands. Loft insulation is a common component because it is cost-effective and delivers a clear performance gain.
Who qualifies for ECO4
ECO4 is aimed at low-income and vulnerable households living in less efficient homes. The main qualifying routes are means-tested benefits and local-authority referrals.
| Route | How it works |
|---|---|
| Qualifying benefits | Household receives a listed means-tested benefit (e.g. Universal Credit, Pension Credit) |
| LA Flex referral | Local authority refers low-income or cold-vulnerable households without a listed benefit |
| Property condition | Targets low EPC bands with potential to improve |
| Tenure | Owner-occupiers and (with consent) private/social tenants |
Indicative ECO4 routes for guidance, 2026. Final eligibility is assessed by the supplier or installer against current rules.
Qualifying benefits and the LA Flex route
The benefits that commonly open the door to ECO4 include Universal Credit, Pension Credit (Guarantee or Savings Credit), income-related Employment and Support Allowance, income-based Jobseeker's Allowance, Income Support, Child Tax Credit, Working Tax Credit and Housing Benefit, among others. Because the list and thresholds can change, the safest check is the current GOV.UK guidance or a direct conversation with your energy supplier.
Households that do not receive a listed benefit are not automatically excluded. Under flexible eligibility (LA Flex), a local authority can refer residents it considers to be on a low income or vulnerable to living in a cold home, broadening the reach of the scheme. ECO4 sits alongside the Great British Insulation Scheme, which uses EPC and council tax band filters and can reach some households that ECO4 does not. For a household whose loft is poorly insulated, ECO4 can mean the work is carried out at no cost, with the energy supplier funding the approved installer directly.
What ECO4 means for your loft specifically
Within the wider package ECO4 can deliver, loft insulation is one of the most straightforward and common measures. Because it is cost-effective and delivers a clear improvement to a home's energy rating, an under-insulated or bare loft is usually high on the installer's list when assessing what will lift the property up the EPC bands. The work brings the loft to the recommended 270mm standard, keeping the eaves clear for ventilation and avoiding the cold-water tank so it does not freeze — the same correct detailing that any good installation follows.
ECO4's fabric-first philosophy means insulation is usually addressed before, or alongside, heating measures, on the logic that there is little point upgrading a heating system while heat is still escaping through the roof and walls. So a household coming to ECO4 with a cold, poorly insulated home may find the loft is just one part of a coordinated set of improvements designed to make the whole property warmer and cheaper to heat. The scheme runs across England, Scotland and Wales, is administered through obligated suppliers under Ofgem's oversight, and — crucially — is accessed through official channels rather than the unsolicited offers that sometimes misuse the ECO name.
Frequently asked questions
Is ECO4 a cash grant?
No. ECO4 funding flows through obligated energy suppliers, who pay approved installers to carry out the work. Eligible households receive the improvements rather than a payment, and the measures are typically free to them.
What benefits qualify for ECO4?
Common qualifying benefits include Universal Credit, Pension Credit, income-related ESA, income-based JSA, Income Support, Child Tax Credit, Working Tax Credit and Housing Benefit. The exact list can change, so check current GOV.UK guidance.
Can I get ECO4 without claiming any benefits?
Sometimes, through the LA Flex route, where a local authority refers low-income or cold-vulnerable households. Otherwise, the Great British Insulation Scheme may be a better fit, as it does not always require a benefit.
Sources & further reading
Figures on this page are typical UK ranges drawn from published sources and depend on your specific loft. They are guidance, not a quotation.