Interest in ECO5 is growing, even though no scheme with that name currently exists. This may sound confusing, but it follows a familiar pattern. Before every new phase of the Energy Company Obligation (ECO), people begin using an informal label to describe whatever comes next.
Right now, the only confirmed scheme is ECO4, which runs until March 2026. The government has not announced the name, structure, or rules of any successor scheme. Even so, homeowners, landlords, and installers want to know whether support will continue once ECO4 ends.
This article explains what people really mean when they search for ECO5, what is currently known about the future of the ECO scheme, and how households can prepare without relying on speculation.
The term ECO5 has emerged because ECO funding plays a major role in helping people improve their homes. With energy costs still high and many properties remaining inefficient, there is understandable concern about what support will be available after 2026.
In previous ECO phases, the same thing happened. Long before ECO4 was formally announced, the public referred to it as “ECO4” simply because it followed ECO3. ECO5 is being used in exactly the same way: as shorthand for the next phase of ECO, whatever it may be called.
ECO stands for Energy Company Obligation. It is a government-backed policy that requires larger energy suppliers to fund improvements to domestic properties. The aim is to reduce energy use, cut heating costs, and improve living conditions for households that struggle most.
Rather than offering short-term bill support, ECO focuses on permanent changes to homes. These improvements help households stay warm while using less energy, which also supports the UK’s climate targets.
The scheme is mainly targeted at low-income and vulnerable households, though eligibility can be widened by local authorities through a mechanism known as LA Flex.
Since its introduction in 2013, the ECO scheme has changed significantly. Early versions focused heavily on carbon savings, often prioritising the easiest measures to install. Over time, the emphasis shifted towards fuel poverty and long-term outcomes for households.
Each phase introduced higher standards and clearer rules. Quality assurance became more important, and the idea of treating the home as a whole rather than installing isolated measures gained traction. This gradual evolution led to the structure we see today under ECO4.
ECO4 launched in July 2022 and is due to run until March 2026. It places strong emphasis on supporting households with low incomes who live in energy-inefficient homes. Compliance with PAS 2035 is mandatory, ensuring that improvements are properly assessed, designed, and installed.
Another defining feature of ECO4 is its fabric-first approach. Insulation and energy efficiency improvements are prioritised before heating systems are upgraded. This helps ensure that any new heating technology performs as effectively as possible.
ECO4 is currently the only active ECO scheme, and any future scheme will build on its framework rather than replace it overnight.
There is no official scheme called ECO5. The government has not announced a programme using that name, nor has it confirmed what the next phase will be called.
When people refer to ECO5, they are usually talking about the successor to ECO4, not a confirmed policy. This distinction is important. While it is reasonable to expect some form of continuation, no details have been finalised.
Although nothing has been formally confirmed, the government has repeatedly stated its commitment to improving home energy efficiency and tackling fuel poverty. The ECO scheme has been a central tool in achieving these aims for over a decade.
Given that track record, it is widely expected that a replacement scheme will exist in some form. However, the name, rules, funding levels, and delivery model may all change.
Announcements about future ECO phases typically appear well before the current scheme ends, often following industry consultations.
While it is too early to make firm claims, past transitions offer useful insight. Eligibility criteria may be refined to better target households most at risk of fuel poverty. There may also be clearer links between eligibility and a property’s EPC rating.
Local Authority Flex is likely to remain important, as it has become a key route for supporting households that fall outside standard benefit criteria. The role of councils could even expand, though this has not been confirmed.
Any future changes are more likely to fine-tune the scheme rather than radically alter its purpose.
Insulation has always been at the heart of ECO and is unlikely to change. Loft insulation, cavity wall insulation, and solid wall insulation remain some of the most effective ways to reduce heat loss, particularly in older properties.
Heating upgrades are also expected to continue, though the balance may shift. Efficient boilers may still be supported where appropriate, especially in homes that are not yet suitable for low-carbon heating. At the same time, technologies such as air source heat pumps are likely to play a growing role, particularly in off-gas properties.
Other improvements, such as heating controls, ventilation, and draught-proofing, support the whole-house approach that has become standard under ECO4.
Homes are responsible for a significant share of the UK’s carbon emissions, largely due to heating. ECO-style schemes help address this by reducing energy demand and supporting cleaner technologies over time.
Just as importantly, they provide long-term protection against fuel poverty. By improving the efficiency of a home, households are less exposed to future energy price rises and benefit from lower bills year after year.
Any successor to ECO4 is expected to remain closely aligned with wider government strategies on retrofit, decarbonisation, and housing quality.
Future ECO support is likely to continue prioritising low-income homeowners living in inefficient properties. Private tenants may also benefit, particularly where landlords need to improve EPC ratings to meet legal requirements.
Social housing providers are another key group, often using ECO funding alongside other programmes to improve their housing stock at scale.
With ECO4 still running, the most practical step is to focus on what is available today rather than waiting for an unconfirmed future scheme. Checking an EPC rating, understanding eligibility routes, and speaking to a local authority can all help households act sooner.
Those who delay may miss out, especially if demand increases as ECO4 approaches its end.
For installers, the direction of travel is clear even without ECO5 details. Quality, compliance, and whole-house thinking are now embedded in ECO delivery. Maintaining accreditation, staying aligned with PAS 2035, and keeping up to date with policy developments will remain essential.
Retrofit coordinators are also likely to continue playing a central role, ensuring that improvements are properly planned and delivered.
ECO-style schemes sit alongside other forms of support, such as the Boiler Upgrade Scheme and the Great British Insulation Scheme. Each has a different purpose and target audience. While some households may be eligible for more than one scheme, the rules around combining funding are strict and vary by programme.
Understanding these differences is key to accessing the right support.
Many people ask whether ECO5 is guaranteed to happen. The honest answer is no. While a successor scheme is likely, nothing is confirmed. Others ask whether it will definitely be called ECO5, and again the answer is no. The name has not been announced.
What is clearer is the government’s long-term intention to improve housing efficiency and reduce fuel poverty, even if the delivery mechanism changes.
At this stage, several important details remain unknown. These include the name of the next scheme, when it will start, how much funding will be available, and whether eligibility rules will change.
Until official announcements are made, it is important to avoid assumptions.
Green Homes Group continues to monitor government consultations, policy signals, and updates related to ECO4 and beyond. This allows households to receive accurate guidance based on confirmed information rather than speculation. If you’re keen to learn more about currently available schemes, don’t hesitate to get in touch with our team!
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