The wait for clarity is over. In a significant move to support fuel-poor households and strengthen the UK’s path to Net Zero, the government has officially confirmed a nine-month extension for the ECO4 scheme.

Originally set to conclude in March 2026, the Energy Company Obligation (ECO4) will now remain active until December 31, 2026. At ECO Heating Guide, we believe this is a game-changer for homeowners and tenants who were worried about missing the original deadline.

The extension follows a detailed consultation period in late 2025. The government decided on the December 2026 date for several key reasons:

• Completing Existing Targets: It gives energy suppliers more time to meet their ambitious energy-saving goals.

• Consumer Protection: The extra time allows for better quality control and remediation of any previous installations that weren’t up to scratch.

• Smooth Transition: It bridges the gap before the new Warm Homes Plan fully takes over, ensuring the supply chain remains stable.

While the date has moved, the core of the scheme remains focused on “whole-house” retrofits. You can still apply for:

• High-Efficiency Heat Pumps: Transitioning away from old gas boilers.

• Solar PV Panels: Reducing your reliance on the grid.

• Advanced Insulation: Including solid wall, cavity wall, and loft insulation to “seal” the heat in.

• ECO4 Flex: Local authorities still have the power to help low-income households who don’t receive standard benefits.

Note: Interestingly, the Great British Insulation Scheme (GBIS) was not extended and is still scheduled to end on March 31, 2026. This makes the ECO4 extension even more vital for those seeking comprehensive heating upgrades.

While a nine-month extension sounds like a long time, the demand for eco-friendly heating is at an all-time high.

1. Installer Capacity: Leading installers are already booking months in advance.

2. No Increase in Funding: The government has not increased the total budget; they have simply spread the existing obligation over a longer period. This means funding “pots” in certain regions could still run out early.

3. Winter Prep: Getting your upgrades done now ensures your home is ready for the 2026 winter season, saving you hundreds on energy bills.

To qualify for the ECO4 extension in 2026, your household must generally meet three main pillars of criteria:

1. Property & Ownership Status

• Homeowners: You must own and reside in the property.

• Private Tenants: You can qualify, but you must have written permission from your landlord.

• EPC Rating: Your home must have an Energy Performance Certificate (EPC) rating of D, E, F, or G. The goal of ECO4 is to move “D & E” rated homes up to at least a “C,” and “F & G” rated homes up to at least a “D.”

One of the most common questions we get at ECO Heating Guide is about boiler replacements. Under ECO4, the rules are specific:

• Efficiency Matters: Your existing boiler typically needs to be non-condensing or have an efficiency rating of less than 84.6%.

• Age: Generally, boilers older than 15 years (installed before 2011) are the primary targets for replacement.

• The “Whole House” Approach: Unlike previous schemes, ECO4 rarely replaces just a boiler. It usually requires a “package” of improvements (like adding insulation) to ensure the new heating system operates at peak efficiency.

You or someone living in your home must be in receipt of at least one of the following state benefits to be “automatically” eligible:

• Universal Credit (UC)

• Pension Credit (Guarantee Credit or Savings Credit)

• Income-based Jobseeker’s Allowance (JSA)

• Income-related Employment and Support Allowance (ESA)

• Income Support (IS)

• Housing Benefit

• Working Tax Credit (WTC)

• Child Tax Credit (CTC)

• Child Benefit: (Note: This is subject to household income thresholds, e.g., £37,200 for a couple with four children).

No Benefits? Use ECO4 Flex: If you don’t receive the benefits above but your total household income is under £31,000 per year, or you have a health condition worsened by the cold (like Asthma or Cardiovascular disease), you may still qualify through your local council’s LA Flex route.

At ECO Heating Guide, we specialize in helping you navigate these changes. If your home has an EPC rating of D, E, F, or G and you are on a qualifying benefit (or meet the ECO4 Flex criteria), you could be eligible for thousands of pounds in non-repayable grants.

1. Is the ECO4 scheme really free?

Yes. For eligible households, the measures—including the survey, the products (like heat pumps or insulation), and the installation—are 100% funded by medium and large energy suppliers. You are not required to pay the money back.

2. I own my home but I’m not on benefits. Can I still get help?

Absolutely. Under the LA Flex (Local Authority Flexibility) part of ECO4, you may qualify if your total household income is under £31,000 per year, or if someone in your home has a health condition made worse by a cold house (such as respiratory or cardiovascular issues).

3. Does the extension apply to the Great British Insulation Scheme (GBIS) too?

No. The government has confirmed that while ECO4 is extended to December 31, 2026, the Great British Insulation Scheme is still scheduled to end on March 31, 2026. If you only need single insulation measures, you should apply before March.

4. My boiler is only 8 years old. Can I get a free replacement?

Likely not. ECO4 prioritizes “inefficient” heating. Generally, gas boilers must be at least 15 years old or non-condensing to qualify for a replacement. However, you might still qualify for other measures like solar panels or wall insulation regardless of your boiler’s age.

5. How long does the process take from application to installation?

On average, the process takes 4 to 12 weeks. This includes the initial eligibility check, the home energy survey, and the actual installation. With the 2026 extension, we recommend applying early to avoid the rush as the new deadline approaches.

6. What happens after December 2026?

The government is transitioning toward the Warm Homes Plan, a £15 billion investment in green energy. ECO4 is being extended specifically to ensure a smooth hand-over to this new plan.