Home Energy Grants Explained: From ECO4 to the Great British Insulation Scheme

Improving your home’s energy efficiency is one of the most effective ways to lower your bills and reduce your carbon footprint. However, the upfront cost of measures like insulation or a new heating system can be a significant barrier. To help households make these changes, the UK government and energy suppliers offer several grants and schemes designed to provide financial support. These programmes can cover a wide range of improvements, from loft insulation to brand-new heat pumps.

The main schemes currently available are the Energy Company Obligation (ECO4) and the Boiler Upgrade Scheme (BUS). Other support, such as the Warm Home Discount, provides direct help with your electricity bills during the winter months. Eligibility for these grants usually depends on your income, the benefits you receive, and your property’s current energy efficiency rating. This guide explains how each scheme works, who can apply, and what funding is available.

The ECO4 Scheme

The Energy Company Obligation (ECO) is a government programme that legally requires large energy suppliers to fund energy-saving improvements in homes across Great Britain. The current phase, ECO4, is focused on delivering a ‘whole house’ approach, meaning it aims to install multiple measures to achieve significant energy savings. The scheme is scheduled to run until 31 December 2026.

Who Is Eligible for ECO4?

ECO4 is targeted at low-income and vulnerable households living in the least energy-efficient homes. To qualify, you typically need to be a homeowner or private tenant (with your landlord’s permission) and meet two main criteria:

• Benefit requirements: Someone in your household must be receiving a qualifying means-tested benefit. These include Universal Credit, Pension Credit, Income Support, Child Tax Credits, Housing Benefit, and others.

• Property requirements: Your home must have an Energy Performance Certificate (EPC) rating of D, E, F, or G. The goal is to improve these properties to a higher standard.

If you don’t receive any qualifying benefits, you may still be able to access funding through the ECO4 Flex route. This allows local authorities to widen the eligibility criteria to include households with a combined annual income of less than £31,000, or those with a resident whose health is negatively affected by living in a cold home. You can check your eligibility on the government's website or contact your local council to see if they participate in the Flex scheme.

What Improvements Does ECO4 Cover?

ECO4 grants can be substantial, potentially worth up to £12,000 depending on the needs of your property. The scheme focuses on a package of upgrades rather than single measures. Funding is available for:

• Insulation: Cavity wall, solid wall, loft, and underfloor insulation are all common measures.

• Heating Systems: This can include repairing or replacing inefficient boilers, installing first-time central heating, or upgrading to more efficient systems like high-retention electric storage heaters.

• Renewable Energy: In some circumstances, particularly for homes with electric heating, ECO4 can fund the installation of solar PV panels.

The Great British Insulation Scheme (GBIS)

The Great British Insulation Scheme was launched to run alongside ECO4, offering a more streamlined route for households to receive a single insulation upgrade. It was designed to help a wider group of people than ECO4, with a broader eligibility base.

Please note: The Great British Insulation Scheme closed to new applications on 31 March 2026. Whilst you can no longer apply, it is useful to understand how it worked, as many households benefited from it. The scheme had two eligibility groups: a ‘general group’ for homes in lower Council Tax bands with a poor EPC rating, and a ‘low-income group’ for those on specific benefits.

The scheme primarily funded one insulation measure per home, such as cavity wall or loft insulation, with the government estimating it could help over 300,000 homes save hundreds of pounds a year on their bills. If you are looking for insulation grants now, the ECO4 scheme is the primary route for support.

The Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme (BUS) provides upfront grants to help property owners in England and Wales overcome the cost of installing low-carbon heating systems. It is designed to encourage the switch away from fossil fuel boilers (like gas, oil, or LPG) to cleaner technologies like heat pumps and biomass boilers. The scheme is confirmed to run until 2028.

Unlike ECO4, the BUS is not means-tested and is open to a wider range of homeowners and small business owners. For more detailed information, you can read our dedicated ‘A Homeowner’s Guide to the Boiler Upgrade Scheme’.

BUS Grant Amounts

The grant is a fixed amount offered as a voucher to reduce the quote from your installer. The current amounts available are:

Who Is Eligible for the BUS?

To qualify for the Boiler Upgrade Scheme, you must:

• Own the property you’re applying for (this includes homeowners, self-builders, and small landlords).

• Be based in England or Wales.

• Be replacing an existing fossil fuel heating system.

• Have a valid Energy Performance Certificate (EPC) for your property that is less than 10 years old.

• Have no outstanding recommendations for loft or cavity wall insulation on your EPC. If you do, you’ll need to install this insulation before you can get a BUS grant.

New-build homes and social housing are not normally eligible. The application itself is managed by your chosen MCS-certified installer, who will apply for the grant on your behalf and deduct its value from your final bill.

Other Support: The Warm Home Discount

Separate from grants for home improvements, the Warm Home Discount scheme provides direct help with energy costs. Eligible low-income and vulnerable households receive a one-off £150 discount on their electricity bill between October and March. You may qualify automatically if you receive the Guarantee Credit element of Pension Credit or if you are on a low income with high energy costs. To learn more about the criteria, see our guide, ‘The Warm Home Discount: A Complete Guide’.

How to Check Your Eligibility and Apply

The application process differs for each scheme:

1. ECO4: The most direct route is to contact one of the large energy suppliers obligated under the scheme - you don’t have to be their customer to apply. Alternatively, you can contact a certified local installer who works on the scheme, or use the government’s online eligibility checker. The process involves an initial check followed by a home survey.

2. Boiler Upgrade Scheme (BUS): You must find an MCS-certified installer to carry out the work. They will advise on the right system for your home and then apply for the grant voucher from Ofgem on your behalf. You will only pay the price of the installation minus the grant amount.

3. Local Authority Schemes: Many councils offer their own energy efficiency grants or administer the ECO4 Flex scheme. It’s always worth checking your local council’s website to see what support is available in your area.

Frequently Asked Questions

Can I Get a Grant if I Have Already Received Funding for Other Home Improvements?

Yes, in most cases. For example, you can receive a grant from the Boiler Upgrade Scheme even if you have previously had insulation installed via ECO. The key rule is that you cannot receive public funding from more than one source for the same installation.

Are New-Build Properties Eligible for These Grants?

Generally, no. New-build homes are expected to meet high energy efficiency standards from the outset, so they are not eligible for schemes like the Boiler Upgrade Scheme. Self-build properties, however, are eligible for the BUS.

Do I Have to Be a Homeowner to Apply?

Not always. The ECO4 scheme is open to private tenants as well as homeowners. However, tenants must get written permission from their landlord before any work can be carried out. The Boiler Upgrade Scheme is only open to property owners.

What if I Don’t Receive Any Benefits?

Even if you don’t receive benefits, you might still qualify for help through your local authority’s ECO4 Flex scheme. This considers factors like total household income (under £31,000) and health conditions made worse by the cold. The Boiler Upgrade Scheme is also not means-tested, so your income and benefit status do not affect your eligibility.

How Much Can I Save With These Grants?

The savings depend entirely on the improvements made. The ECO4 scheme can provide funding worth up to £12,000 for a deep, whole-house retrofit, leading to significant long-term bill reductions. The Boiler Upgrade Scheme provides a grant of up to £9,000, making the switch to a low-carbon heating system much more affordable.

Making Your Home More Efficient

Navigating the world of energy grants can seem complex, but these schemes offer valuable support for making your home warmer, cheaper to run, and more environmentally friendly. Whether it’s through the comprehensive ECO4 scheme or the targeted Boiler Upgrade Scheme, there are options available to help with the upfront costs. Always start by checking your eligibility and contacting certified installers or your energy supplier to begin the process.