The government has confirmed that the ECO4 scheme will be extended by nine months, moving its end date from 31 March 2026 to 31 December 2026. The decision was published in the government's consultation response on 23 January 2026, and gives households extra time to apply for fully funded energy-efficiency improvements before the scheme closes for good.
What is changing?
ECO4 — the fourth phase of the Energy Company Obligation — was originally due to end on 31 March 2026. Following a consultation that ran between August and September 2025, the Department for Energy Security and Net Zero has agreed to push the closing date back to 31 December 2026, an extension of nine months. The extra time is intended to give the larger energy suppliers, who fund the scheme, more room to meet their existing obligations.
Why has ECO4 been extended?
The government set out a few key reasons for the extension:
- More time to hit targets: obligated energy suppliers are given additional time to meet their existing ECO4 targets, avoiding a rushed end to the scheme.
- Better consumer protection: the extra months let the supply chain focus on remediation — putting right any installations that were not completed to standard — rather than racing to fit new measures.
- An orderly closure: extending the deadline supports a controlled, orderly wind-down of the scheme.
Important: targets and funding have NOT increased
This is an extension of time, not of budget. The government has confirmed there will be no increase in supplier targets and no carry-over arrangements into any future scheme. Solid wall and minimum-requirement targets stay at their current levels and simply have to be achieved by the new December 2026 deadline. In practice, the same pot of funding now has to last a little longer — so measures are likely to get harder to secure as suppliers close in on their obligations.
The Great British Insulation Scheme is not affected
It is worth being clear that the extension applies to ECO4 only. The Great British Insulation Scheme (GBIS) will still end as planned on 31 March 2026. If you think you may qualify for help under GBIS, you should act well before that date.
What this means for homeowners and tenants
If you have been thinking about applying for help towards insulation, a new boiler, a heat pump, first-time central heating or other energy-saving measures, the extension is good news: you now have until 31 December 2026 to benefit from ECO4 funding. But because targets and budgets have not grown — and because there is currently no successor scheme lined up to replace ECO4 — it makes sense to apply sooner rather than later, while funding is still available.
Could this be the last scheme of its kind?
The government has confirmed there will be no successor obligation immediately following ECO4. Future energy-efficiency schemes may be announced in time, but nothing is currently confirmed to take its place. For many households, ECO4 could be the last opportunity for some time to access fully funded home upgrades — another good reason not to leave an application to the last minute.
Am I eligible for ECO4?
ECO4 is aimed at helping low-income and vulnerable households improve their home's energy efficiency. You may qualify if you receive certain means-tested benefits, or through your local authority's flexible eligibility criteria, and if your home has a lower energy-efficiency rating. Both homeowners and private tenants can apply.
Check your eligibility today
Don't wait until the deadline approaches — check whether you qualify for ECO4 in under a minute, and our team will guide you through the rest. With the scheme now running until December 2026 but funding still limited, the best time to apply is now.
Source: Department for Energy Security and Net Zero, 'Extending the ECO4 end date: government response', published 23 January 2026 (gov.uk).