ECO4 Scheme for Landlords: Free EPC Upgrades Through Your Energy Supplier

What Is ECO4?

ECO4 is the scheme where energy companies pay for your property's insulation and heating upgrades. Not a loan. Not a discount. Fully funded, if your tenant qualifies. The catch: eligibility is based on the tenant's benefits, not yours. But the upside is enormous — a full insulation and heating package that would cost £5,000–15,000 privately, delivered for nothing.

ECO4 launched in April 2022 and runs until December 2026. It replaced ECO3 and introduced a new "fabric first" approach, meaning insulation measures (loft, cavity wall, solid wall, underfloor) are prioritised before heating upgrades. No successor scheme has been confirmed — the upcoming Warm Homes Fund consultation suggests the government is considering a different delivery model from 2027 onwards.

How ECO4 Works for Landlords

The key principle: ECO4 eligibility is based on the tenant’s income and benefits status, not the landlord’s. This means a landlord with substantial assets can access fully-funded improvements if their tenant qualifies.

Qualifying benefits include Universal Credit, Pension Credit, Income Support, Jobseeker’s Allowance (income-based), Employment and Support Allowance (income-based), Child Tax Credit (with income below the threshold), Working Tax Credit, and Housing Benefit.

Your tenant does not need to apply directly. In many cases, the installer or energy company handles the eligibility verification.

The LA Flex Route

Even if your tenant is not on qualifying benefits, they may still qualify through the Local Authority Flex (LA Flex) mechanism. Local authorities can refer households that meet broader fuel poverty criteria — for example, low income combined with poor EPC rating, health conditions exacerbated by cold homes, or residence in an area with high deprivation indices.

Contact your local council’s energy efficiency team to ask about LA Flex referrals. This route is often overlooked by landlords but is increasingly used as councils work to hit their own fuel poverty reduction targets.

What’s Covered Under ECO4

ECO4 can fund a wide range of measures, but the scheme enforces a "minimum requirement" structure. Properties must be treated to at least a Band D equivalent, and the measures must follow a fabric-first hierarchy:

Insulation (prioritised first):

• Loft insulation (typically £600–1,200 if self-funded)
• Cavity wall insulation (£1,200–2,500)
• Internal or external solid wall insulation (£8,000–22,000)
• Underfloor insulation (£1,500–3,500)

Heating (after insulation):

• First-time central heating installation
• Boiler replacement (must be broken or condemned)
• Storage heater upgrades
• Heat pump installation (in specific circumstances)

Other measures:

• Draught-proofing
• Heating controls
• Solar PV (as a secondary measure)

The critical point: heating replacements are generally only funded after insulation has been addressed. If your property needs loft insulation and a new boiler, the insulation comes first under ECO4 rules.

ECO4 and EPC Ratings

ECO4 has a direct impact on EPC ratings because it funds the physical improvements that determine your SAP score. A property that receives cavity wall insulation and loft insulation through ECO4 can realistically improve from Band E or D to Band C — potentially meeting the 2030 MEES requirement at zero cost to the landlord.

The scheme includes a "minimum improvement" target: each treated property should improve by at least two SAP points, though in practice most ECO4 installations deliver far more than this.

How to Apply

Step 1: Check your tenant’s benefit status. If they receive any of the qualifying benefits, they are likely eligible.

Step 2: Contact your energy supplier’s ECO team, or find a local ECO-accredited installer. Many installers offer a free eligibility check and will handle the application process.

Step 3: If your tenant does not receive qualifying benefits, contact your local authority about LA Flex referrals.

Step 4: The installer conducts a property assessment to determine which measures are needed and in what order (fabric first).

Step 5: Work is scheduled and completed. The landlord’s contribution is typically zero for fully eligible properties, though some installations may require a small "top-up" contribution if costs exceed the scheme’s funding caps.

ECO4 by City

ECO4 delivery varies significantly by region. Energy suppliers work with networks of accredited installers, and coverage is not uniform across the UK. Urban areas with higher concentrations of fuel-poor households tend to have more active installer networks.

Cities with particularly active ECO4 delivery include Liverpool, Manchester, Birmingham, Leeds, Bradford, and Sheffield — all areas with large private rented sectors and high fuel poverty rates. If you own rental properties in these areas, the probability of your tenant qualifying is higher than the national average.

In rural areas and smaller towns, ECO4 delivery can be slower due to fewer accredited installers. Contact your energy supplier early — schemes often have annual delivery targets that create a "first come, first served" dynamic in less active areas.

The Clock Is Ticking

ECO4 runs until December 2026. After that, there is no confirmed successor scheme. The Warm Homes Fund consultation published in March 2026 proposes a different model that may not replicate ECO4’s supplier obligation approach.

If your tenant qualifies, acting now secures free improvements under a known scheme. Waiting risks losing access to fully-funded upgrades if the replacement scheme has different eligibility rules or lower funding caps.

Check Your Property’s ECO4 Potential