What is ECO4 in plain English?

ECO4 is the Energy Company Obligation, phase 4 — a UK-wide programme that requires major energy suppliers to fund insulation and heating improvements for low-income households. It runs from 2022 to 2026 and is means-tested, not property-tested.

Who qualifies for ECO4?

Households on certain benefits (Universal Credit, Pension Credit, ESA, Income Support) typically qualify. Households not on benefits may qualify via "LA Flex" — a local-authority referral route for low-income households not on standard benefits.

Does ECO4 cover the full cost of a heat pump?

In many cases, yes. ECO4 is structured to deliver "first-time central heating" or full-house retrofit to qualifying households. For most qualifying homeowners, the heat pump install is delivered at no cost. Co-funding from the homeowner is sometimes required for premium options.

Can I get both ECO4 and BUS?

Not on the same installation. But ECO4 can fund the insulation work you need to become BUS-eligible — turning an F-rated home into a D-rated home, so you can then apply for BUS separately for the heat pump.

ECO4 Heat Pump Grants UK 2025: Eligibility, Application & What You Get

ECO4 is the means-tested grant programme that funds heat pumps and insulation for low-income UK households. Unlike BUS — which is property-based — ECO4 is income-based. For households who qualify, it can mean a heat pump installation at zero or minimal cost.

What ECO4 is

The Energy Company Obligation (ECO) is a UK government scheme that legally requires the largest energy suppliers — British Gas, Octopus, OVO, EDF, E.ON, ScottishPower, Shell and others — to fund energy efficiency and heating improvements for qualifying households.

ECO4 is the current phase, running from 2022 to 2026. It's the most generous iteration to date, with a stronger focus on whole-house retrofit (rather than individual measures) and on the worst-performing properties.

Importantly: ECO4 is funded by energy suppliers, not directly by government. The cost is spread across all energy bills, not a Treasury line item. That makes it less vulnerable to political cycles than BUS.

Who qualifies

Two main routes:

Route 1: HHCRO (Help to Heat / on benefits)

You qualify if anyone in your household receives one of these benefits:

Universal Credit
Pension Credit (Guarantee Credit)
Income-based Jobseeker's Allowance
Income-related Employment and Support Allowance
Income Support
Housing Benefit
Child Tax Credit / Working Tax Credit
Child Benefit (with income limits)

Route 2: LA Flex (no benefits but low-income)

Some local authorities use "ECO Flex" referrals — a route that lets them refer households not on standard benefits but otherwise low-income or vulnerable. Criteria vary by council; common ones include:

Household income under £31,000 (varies)
Health conditions worsened by cold (respiratory, cardiovascular)
Aged 65+ in EPC F or G properties
Households with children under 5 in cold homes

Contact your local council's environmental health or energy efficiency team to check LA Flex.

What ECO4 covers

Heat pumps are included as a primary heating measure. So are:

Loft insulation
Cavity wall insulation
Solid wall insulation (internal or external)
Room-in-roof insulation
Underfloor insulation
Window upgrades (in limited cases)
Smart thermostats
First-time central heating systems

The programme is structured around full-house upgrades. Most ECO4 heat pump installations come bundled with insulation work — particularly important because heat pumps don't perform well in poorly insulated properties.

How to apply

Check eligibility via your energy supplier's website, or use a free independent service like Simple Energy Advice (gov.uk).
Apply through your energy supplier. Each supplier runs its own programme; you don't have to be a customer of the supplier you apply to, but it can speed things up.
Home survey by a TrustMark-registered installer (heat pumps must also be MCS).
Work proposal covering all qualifying measures.
Installation, typically funded fully if your case meets ECO4 criteria.

Be cautious of "free heat pump" cold callers. ECO4 is real, but a lot of doorstep selling and email spam tries to ride on its name. Always apply through your energy supplier or your council's recommended route — never sign anything at the door.

Combining ECO4 with BUS

You can't claim both grants on the same heat pump installation. But ECO4 can fund the insulation upgrades that bring your home up to EPC D — making you BUS-eligible for the heat pump itself.

Common combined sequence:

ECO4 funds loft and cavity wall insulation (free if you qualify)
Your EPC rises from F or E to D
You apply for BUS for the heat pump
You receive £7,500 toward the heat pump install

For some homeowners, this combination is the best route — particularly older properties that need insulation work anyway.

What ECO4 won't fund

Households not on qualifying benefits and not eligible via LA Flex
Already-efficient properties (EPC A, B or C usually)
Holiday homes or second homes
Properties in poor structural condition (priority is on housing fit for retrofit)

The bottom line

ECO4 is genuinely transformative for qualifying households — it can deliver a heat pump and a whole-house insulation upgrade at zero or minimal cost. If you're on benefits or your local council operates ECO Flex, it's the first scheme to check.

If you're a middle-income owner-occupier, BUS will be your route instead. See the BUS guide for full details.