ECO4 scheme: what it means for tenants in private rented housing

ECO4 is a government-backed energy scheme. It can pay for insulation, heating systems, and other improvements in privately rented homes. Here is what it covers, who can benefit, and what your landlord must do.

What is ECO4?

ECO4 stands for Energy Company Obligation, fourth phase. It makes the big energy suppliers fund improvements to badly insulated or badly heated homes. The scheme runs until March 2026. It focuses on homes that are hard to heat, lived in by people on low incomes or certain benefits.

Unlike some earlier schemes, ECO4 takes a "whole house" approach. It aims to lift the home's overall energy performance, not just make one small change.

What does ECO4 fund?

ECO4 can cover a range of improvements, including:

• Loft insulation
• Cavity wall insulation
• Solid wall insulation, inside or outside
• Air source heat pumps
• Solar panels
• First-time central heating, in homes that have none
• Smart heating controls
• Draught proofing

What gets funded depends on what the home needs and your circumstances.

Can tenants in privately rented homes benefit?

Yes. Private rented homes qualify for ECO4, but the landlord usually has to agree, because the work is done to their property. Some improvements, like solid wall insulation, need planning or structural changes only the landlord can approve.

So the landlord has to engage with the scheme. Many have a reason to: the work raises the home's energy rating, which they may need under the Minimum Energy Efficiency Standard (MEES) rules.

Do tenants have to pay?

ECO4 is meant to be free or heavily subsidised for households that qualify. If you qualify, the cost should not land on you.

Landlords cannot charge tenants for ECO4 improvements. And better insulation should cut your energy bills.

How do I know if I am eligible?

It depends on a mix of things, including:

• Whether you get certain benefits, such as Universal Credit, Pension Credit, or Child Tax Credit
• The home's energy rating. Homes rated E, F, or G come first.
• Whether the home is in a low-income area under the Great British Insulation Scheme extension

Your energy supplier may contact you if you look eligible. You can also apply through an installer registered with the scheme.

What if my landlord refuses to allow the work?

The law cannot force a landlord to accept ECO4 work they do not want. But if your home is rated below EPC band E, the MEES rules may already require the landlord to improve it, and ECO4 money could help them do that.

If your home is cold and badly insulated and your landlord refuses to act, you may have a housing disrepair claim, depending on the circumstances.

How do I apply?

You can apply through:

• Your energy supplier. Contact them and ask about ECO4.
• An ECO4-registered installer. Many offer free home assessments.
• Your local council. Some run referral schemes.

Be careful with cold callers offering "free government insulation". Only deal with installers registered with Ofgem-approved schemes.

When should I contact Support for Tenants?

If your home is cold or damp and your landlord has not acted, we may be able to help, whether or not ECO4 funding is available.

Call us on 0800 030 4669. No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.

Sources

• Energy Company Obligation (GOV.UK)
• Warm Homes and Energy Conservation Act 2000 (legislation.gov.uk)