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

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

What is ECO4?

ECO4 stands for Energy Company Obligation, fourth phase. It is a scheme that requires large energy suppliers to fund improvements to poorly insulated or poorly heated homes. The scheme runs until March 2026 and focuses on homes that are hard to heat and occupied by people on low incomes or certain benefits.

Unlike some earlier schemes, ECO4 takes a "whole house" approach, it aims to improve the overall energy performance of the home, 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 (internal or external)
• Air source heat pumps
• Solar panels
• First-time central heating systems in homes that have no central heating
• Smart heating controls
• Draught proofing

The specific measures funded depend on what the property needs and what your circumstances are.

Can tenants in privately rented homes benefit?

Yes. Privately rented properties are eligible for ECO4, but landlord consent is usually required because the works are carried out on the property. Some improvements, such as solid wall insulation, require planning or structural changes that only the landlord can authorise.

In practice, this means the landlord needs to engage with the scheme. Some landlords are motivated to do so because the improvements increase the property's energy rating, which may be required under Minimum Energy Efficiency Standard (MEES) rules.

Do tenants have to pay?

ECO4 is designed to be free or heavily subsidised for eligible households. If you qualify, the cost of improvements should not fall on you as a tenant.

However, landlords cannot charge tenants for improvements made under ECO4, and any improvement that increases the energy efficiency of a property should benefit the tenant through lower energy bills.

How do I know if I am eligible?

Eligibility depends on a combination of factors, including:

• Whether you receive certain benefits (such as Universal Credit, Pension Credit, or Child Tax Credit)
• The energy performance rating of the property (homes rated E, F, or G are prioritised)
• Whether the property is classed as a low-income area under the Great British Insulation Scheme extension

Your energy supplier may contact you directly if you appear eligible, or you can apply through an installer registered with the scheme.

What if my landlord refuses to allow the work?

Your landlord cannot be legally forced to accept ECO4 improvements if they do not want them. However, if your home is rated below EPC band E, your landlord may already be required to improve it under MEES rules, in which case ECO4 funding could help them meet that obligation.

If your home is cold, poorly insulated, and your landlord is refusing 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 directly and ask about ECO4
• An ECO4-registered installer, many offer free home assessments
• Your local council, some councils run referral schemes

Be cautious of unsolicited callers who claim to offer 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 taken steps to fix the problem, we may be able to help, regardless of whether 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)