ECO4 Grant Changes for 2026: What Lancashire Homeowners Need to Know

Update (June 2026): ECO4 has been extended to 31 December 2026, when it ends. All approved installations must be completed by 31 December 2026. The Warm Homes: Local Grant, which replaced the Home Upgrade Grant, is a separate scheme run through councils, not ECO4’s successor.

The Energy Company Obligation (ECO4) continues into 2026 with several important changes that affect Lancashire homeowners. The scheme’s final phase tightens some eligibility criteria while expanding the range of measures available. Free insulation, heating upgrades, and even solar panels remain on offer for qualifying households, but the application process and property requirements have shifted. Here is what you need to know if you are considering making an ECO4 application in Lancashire this year.

What Are the ECO4 Grant Changes for 2026?

The key ECO4 change for 2026 is that the scheme is in its final year: a nine-month extension moved its end from 31 March to 31 December 2026. All approved installations must be completed by 31 December 2026. Ofgem has also tightened scoring requirements, meaning energy suppliers are prioritising properties where measures deliver the greatest EPC improvement. Homes rated EPC F and G are being fast-tracked, while D-rated properties may find it harder to secure funding.

For Lancashire homeowners, the practical impact is that ECO4 applications should be submitted as soon as possible. The Warm Homes Local Grant, which launched in late 2025, is now running alongside ECO4 and offers an alternative funding route for households that struggle to secure ECO4 support. In Lancashire it runs through Cosy Homes in Lancashire (13 councils; Fylde isn’t a member), whose 2026/27 funding is fully committed; application forms reopen in March 2027. Both schemes cover insulation, heating upgrades and ventilation measures, and eligibility is based on income, benefits and EPC rating.

What Has Changed in ECO4 for 2026?

ECO4 launched in April 2022 and has been extended to run until 31 December 2026. As the scheme enters its final months, energy companies are pushing to meet their obligations, which means there is strong installer activity across Lancashire. Several changes affect how the scheme works in practice:

Minimum EPC uplift requirements. ECO4 now requires that funded work lifts a home that starts in EPC band F or G to at least D, and one that starts in band D or E to at least C. This means a single measure like loft insulation top-up may no longer qualify on its own if it does not achieve the required uplift. Homes may need a package of measures to meet the threshold.

Focus on worst-performing homes. The scheme directs more funding towards homes with EPC ratings of E, F, and G. Lancashire has a significant number of these properties, concentrated in the older terraced housing across Burnley, Hyndburn, Pendle, and Blackburn with Darwen. If your home falls into these lowest bands, you are a priority for ECO4 funding.

Expanded eligible measures. The list of measures that can be funded through ECO4 has been widened. In addition to traditional insulation and boiler replacements, ECO4 can now fund solar panels, battery storage (in some cases), heat pumps, and smart heating controls where they form part of a comprehensive improvement plan.

Stricter quality standards. Following reports of poor-quality installations in earlier ECO rounds, TrustMark certification is now mandatory for all ECO4 installers. This provides a quality framework and a route to redress if work is unsatisfactory. Lancashire homeowners should only accept ECO4 work from TrustMark registered installers.

Who Qualifies for ECO4 in Lancashire?

There are two main routes to ECO4 eligibility: the benefits route and the local authority flex route.

Benefits route. If your household receives any of the following benefits, you may qualify for ECO4: Universal Credit, Pension Credit, Child Tax Credit and Working Tax Credit (both now replaced by Universal Credit), Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Housing Benefit, or Warm Home Discount (core group). Your home typically needs to have an EPC rating of D, E, F, or G.

ECO4 Flex route. If you do not receive qualifying benefits, your local council can declare you eligible under the Flex criteria. Lancashire councils use various definitions, but common qualifying factors include household income below £31,000, a health condition worsened by living in a cold home, or living in a low-income area (bottom 40% of the Index of Multiple Deprivation). A home with an EPC of E, F, or G doesn’t qualify on its rating alone: the household must also meet the council’s criteria.

Lancashire councils that have been particularly active in issuing Flex declarations include Burnley, Hyndburn, Pendle, Blackburn with Darwen, and Lancaster. Contact your local council’s housing or energy team to request a Flex assessment. The process varies by council but typically involves a telephone or online assessment taking 15 to 30 minutes.

What Measures Can ECO4 Fund in Lancashire?

The range of measures available depends on what your home needs to achieve the required EPC uplift. Common ECO4-funded measures in Lancashire include:

• Loft insulation – Top-up or full installation. Worth £300 to £700 if self-funded.
• Cavity wall insulation – Standard fill for homes with suitable cavities. Worth £500 to £1,200.
• Internal wall insulation – For solid-walled homes where external is not suitable. Worth £5,000 to £8,000.
• External wall insulation – For solid-walled homes with planning permission. Worth £8,000 to £14,000.
• Floor insulation – Suspended timber or solid floor. Worth £500 to £2,000.
• Boiler replacement – First-time central heating or replacement of a broken/inefficient boiler. Worth £2,000 to £3,500.
• Heat pump installation – Air source heat pumps as part of a whole-house plan. Worth £8,000 to £14,000.
• Solar panels – Where they contribute to the EPC uplift target. Worth £5,000 to £8,000.
• Smart heating controls – Programmable thermostats and TRVs. Worth £200 to £500.

The total value of ECO4 work on a single Lancashire property can exceed £20,000 for a comprehensive upgrade package. This represents a substantial investment in your home, usually at no cost to you.

How to Apply for ECO4 in Lancashire

There are several ways to access ECO4 funding:

Through your energy supplier. Contact your electricity or gas supplier directly and ask about ECO4 eligibility. Most major suppliers (British Gas, Ovo, EDF, Octopus) have ECO4 obligations and can refer you to their qualified installer network.

Through a TrustMark registered ECO4 installer. Many Lancashire installers are registered to deliver ECO4 work and can assess your eligibility as part of a free home survey. They handle the application to the energy company on your behalf.

Through your local council. Lancashire councils can refer you to ECO4 and issue the Flex declarations needed for non-benefits applicants. Contact your district council’s housing or environmental health team.

Through the government helpline. The Simple Energy Advice helpline provides free guidance on ECO4 eligibility and can direct you to local installers. They cover all Lancashire postcodes.

Watch Out for ECO4 Scams

The popularity of ECO4 has attracted some unscrupulous operators. Lancashire residents should be aware of these red flags:

Cold callers asking for upfront payments. ECO4 work is usually free for qualifying households. No legitimate ECO4 installer will ask you to pay a deposit, survey fee, or admin charge. If anyone asks for money upfront, walk away.

Pressure to sign up immediately. Genuine ECO4 installers give you time to consider and ask questions. High-pressure sales tactics, especially from door-to-door salespeople, are a warning sign. Burnley and Blackburn have both seen reports of aggressive cold-calling by non-legitimate firms.

Companies not registered with TrustMark. All ECO4 installers must be registered. Check the TrustMark website before agreeing to any work. If a company cannot provide their TrustMark registration number, do not proceed.

Promises that seem too good to be true. While ECO4 can fund substantial work, no single scheme covers everything. Be cautious of companies promising complete home renovations funded entirely through ECO4.

ECO4 Timelines: How Long Does It Take?

From initial enquiry to completed work, the typical ECO4 timeline in Lancashire is:

• Eligibility check and survey: one to two weeks
• EPC assessment (if needed): one week
• Energy company approval: two to four weeks
• Installation scheduling: two to six weeks
• Installation work: one day (loft insulation) to two weeks (external wall insulation)

Total time from enquiry to completion is typically six to twelve weeks for straightforward measures like loft and cavity wall insulation. More complex jobs like external wall insulation can take three to six months due to longer planning and installation timeframes.

With ECO4 scheduled to end on 31 December 2026, applications need to move quickly. If you think you might qualify, starting the process now gives the best chance of having work completed before the scheme closes.

Will ECO4 be extended beyond December 2026?

ECO4 was extended from March 2026 and now runs until 31 December 2026. No successor supplier obligation has been announced. Even if a new scheme launches, there may be a gap between ECO4 ending and the replacement starting. Applying for ECO4 now ensures you benefit from the current scheme’s confirmed funding.

Can private tenants apply for ECO4 in Lancashire?

Private tenants can benefit from ECO4, but the landlord must consent to the work being carried out on their property. The tenant applies based on their own benefits or eligibility, and the landlord gives permission for the installation. The work is usually done at no cost to either the tenant or the landlord. If your landlord is reluctant, point out that the improvements increase the property’s EPC rating and value, usually at no cost to them.

What happens to my EPC after ECO4 work?

After ECO4-funded improvements, a new EPC is carried out to confirm the uplift. This updated EPC replaces your previous one and is valid for 10 years. If the improvements bring your home up to a C rating or above, you will benefit from lower energy bills and a more valuable property. In Lancashire’s housing market, a higher EPC rating can add £5,000 to £10,000 to a property’s value.