ECO4 Flex: How Lancashire Councils Are Using Discretionary Funding

ECO4 Flex is a mechanism that allows local authorities to identify households as eligible for energy efficiency improvements even when they do not meet the standard ECO4 criteria. Across Lancashire, councils have been using this discretionary power to extend energy grants to thousands of additional households that would otherwise miss out. If you have been told you do not qualify for ECO4, your council’s Flex criteria might still get you funded.

What Is ECO4 Flex Funding?

ECO4 Flex is a discretionary route within the Energy Company Obligation scheme that allows local councils to refer households for free energy efficiency measures — even if they do not receive qualifying benefits. Lancashire councils use Flex Statements of Intent to set their own eligibility criteria, typically targeting households with a combined income below £31,000 or people with health conditions worsened by living in a cold home.

In Lancashire, all 12 district councils and two unitary authorities have published active ECO Flex Statements of Intent. Burnley, Pendle and Hyndburn — among the most fuel-poor areas in England — have some of the widest eligibility criteria, covering residents on low incomes regardless of benefit status. Eligible measures include loft insulation, cavity wall insulation, solid wall insulation, boiler replacements and first-time central heating, usually fully funded through participating energy suppliers.

What Is ECO4 Flex and How Does It Work?

The standard ECO4 scheme targets households on specific benefits (Universal Credit, Pension Credit, and others) living in properties rated EPC D, E, F, or G. But the government recognised that many fuel-poor households fall outside these strict criteria – perhaps because they earn just above the threshold, receive a different type of support, or have a health condition exacerbated by cold housing.

ECO4 Flex empowers local councils to issue declarations confirming that a household meets locally defined vulnerability criteria. Once a council issues this declaration, energy suppliers are obligated to treat the household as eligible for ECO4 funding. The council does not pay for the measures – the funding still comes from the energy suppliers’ ECO4 obligation – but the council acts as the gateway.

Each Lancashire council sets its own Flex criteria within a framework published by the Department for Energy Security and Net Zero (DESNZ). These criteria typically cover four routes: households on means-tested benefits in specified properties, households with low income and high energy costs, households identified through the NHS or health services as vulnerable to cold, and households referred by other statutory agencies.

Lancashire County Council Area: ECO4 Flex Criteria

The twelve district councils within the Lancashire County Council area each administer their own ECO4 Flex schemes, though many follow similar criteria. Here is what the main districts are offering.

Preston City Council operates a particularly active Flex scheme. Their criteria include households with a combined income below £31,000 where the property has an EPC of D or below, households where any member receives Disability Living Allowance or Personal Independence Payment regardless of income, and households referred by the NHS or social services as vulnerable to cold-related illness. Properties in the PR1-PR5 postcodes with solid walls or no loft insulation are prioritised.

Lancaster City Council includes similar income thresholds but has added a specific criterion for households in off-gas-grid properties heated by oil or LPG. This captures many rural homes in the Lune Valley and Forest of Bowland that face particularly high heating costs. They also include households where the main occupier is aged over 60, regardless of benefit status.

Burnley Borough Council, Hyndburn Borough Council, and Pendle Borough Council have aligned their criteria closely and include a route specifically for households in the most deprived Lower Super Output Areas (LSOAs) within their boundaries. Given that parts of Burnley, Accrington, and Nelson rank among the most deprived areas nationally, this route captures a significant number of additional households.

Greater Manchester Councils: ECO4 Flex Approaches

The ten Greater Manchester councils each set their own Flex criteria, coordinated to some extent through the Greater Manchester Combined Authority. Manchester City Council’s Flex scheme is one of the most comprehensive in the region, covering households with a gross income below £36,000 in EPC D-G properties, anyone with a long-term health condition worsened by cold housing, and families with children under 5.

Salford City Council has taken an area-based approach, automatically qualifying households in specific neighbourhoods identified through the council’s fuel poverty mapping. Parts of Broughton, Langworthy, and Irlam have been designated as priority areas where simplified Flex declarations can be issued.

Bolton Council and Wigan Council both include a route for households where the annual energy bill exceeds 10% of household income – a direct measure of fuel poverty. This is particularly relevant for households in older properties around the BL and WN postcode areas, where poor insulation drives up heating costs significantly.

Oldham Council and Rochdale Borough Council have included routes for private rented sector tenants whose landlords are willing to allow ECO4 work. This is important because tenants in the private rented sector are disproportionately likely to live in fuel poverty but have historically been harder to reach through energy efficiency schemes.

What Measures Can You Get Through ECO4 Flex?

The measures available through ECO4 Flex are the same as the standard ECO4 scheme. The key difference is only in the eligibility criteria, not in what you receive. Typical measures include cavity wall insulation (worth £500-1,500), loft insulation (£300-800), solid wall insulation – both internal and external (£4,000-14,000), floor insulation (£500-1,500), room-in-roof insulation (£1,500-3,500), replacement boilers for broken or inefficient systems (£2,000-3,500), and in some cases, solar panels with battery storage (£5,000-8,000).

ECO4 takes a whole-house approach, meaning your property will be assessed and a package of measures recommended to bring it up to at least EPC band D if it starts in band F or G, or at least band C if it starts in band D or E. You might receive multiple measures in a single project, usually fully funded.

How to Apply Through Your Council

The application process varies by council but generally follows a similar pattern. Contact your local council’s housing or energy team – many have a dedicated phone line or online form for ECO4 Flex enquiries. You will need to provide basic information about your household including income, benefit status, any health conditions, and your property’s EPC rating (if you have one).

The council will assess your application against their Flex criteria. If you qualify, they issue a declaration letter that you or your chosen installer can use to access ECO4 funding. The declaration is typically valid for 12 months, giving you time to arrange the installation.

Processing times vary. Some Lancashire councils process Flex applications within 2-3 weeks, while others take 6-8 weeks during busy periods. Preston and Lancaster have been particularly responsive, while some Greater Manchester councils have faced backlogs due to high demand. Apply as early as possible, especially if you want work completed before winter.

Common Reasons Applications Are Rejected – and What to Do

The most common reason for Flex rejection is that the household’s income exceeds the council’s threshold. If you are just above the limit, ask about other routes – the health condition pathway or the high energy cost pathway might still qualify you. Some councils also have hardship exceptions for households facing temporary financial difficulty.

If your property has a current EPC of C or above, you will typically not qualify for ECO4 Flex regardless of your personal circumstances. However, if you believe your EPC is inaccurate (perhaps completed before recent changes to the property), you can commission a new assessment. An EPC costs £60-100 and is valid for 10 years.

Some households are rejected because the measures needed would not improve their EPC by enough to justify the cost under ECO4 rules. In these cases, the Great British Insulation Scheme, which funded single measures without the whole-house requirement, used to be a better route, but it closed on 31 March 2026. Ask your council about the Warm Homes: Local Grant instead, for homes rated EPC D to G where the household has a gross income under £36,000, gets a means-tested benefit or lives in an eligible postcode.

Working with ECO4 Installers

Once you have your Flex declaration, you can approach any ECO4-qualified installer to carry out the work. You do not have to use a specific contractor. It is worth getting quotes from multiple installers because while the measures are funded by the energy suppliers, different installers may offer slightly different packages or timelines.

Look for TrustMark registered installers certified to PAS 2030 – this is a requirement for ECO4 work and ensures the installation meets appropriate quality standards. Several Lancashire-based companies specialise in ECO4 work, and your council may provide a list of qualified installers operating in your area.

Be wary of cold callers claiming to offer free insulation or boiler replacements through ECO4. While the scheme is genuine, the approach should always start with your council’s Flex declaration, not with an installer knocking on your door. Legitimate ECO4 installers will ask to see your declaration or help you obtain one through the proper channels.

Can private tenants apply for ECO4 Flex?

Yes, but you need your landlord’s written consent for any work to be carried out. Some Lancashire councils actively encourage private landlords to participate because ECO4 improvements usually come at no cost to the landlord while improving the property’s EPC rating – increasingly important as minimum energy efficiency standards tighten. If your landlord is reluctant, your council may be willing to write to them explaining the benefits.

Is there a deadline for ECO4 Flex?

ECO4 runs until 31 December 2026, and Flex declarations can be issued until the scheme closes. However, funding is allocated on a first-come, first-served basis, and some Lancashire councils have already used a significant proportion of their allocation. Applying sooner rather than later maximises your chances of receiving funding before the budget runs out.

My council rejected my ECO4 Flex application. Can I appeal?

Most councils have an informal review process, though not a formal appeal mechanism. If you have been rejected, contact the council to understand the specific reason and ask whether any other pathway might qualify you. Circumstances change – a new health diagnosis, a change in income, or an updated EPC could make you eligible on reapplication. You can also contact your local councillor for assistance with your case.