ECO Flex Scheme
What is ECO4 Flex?
ECO4 Flex is a flexible eligibility route within the UK Government’s ECO4 Scheme (Energy Company Obligation Phase 4). It allows Local Authorities, Devolved Administrations, and Energy Suppliers to refer households for grant funding—even if those households do not receive traditional qualifying benefits.
The purpose of ECO4 Flex is to support low-income and vulnerable households who are at risk of fuel poverty but may not be claiming means-tested benefits. Fuel poverty is typically defined as a household needing to spend more than 10% of its income to adequately heat their home.
Check Eligibility and Apply for ECO Flex/LA Flex Scheme
Roles in the ECO4 Flex Scheme: Local Authorities, Energy Suppliers & Devolved Administrations
The ECO4 Flex Scheme is a key part of the UK Government’s commitment to reducing fuel poverty and carbon emissions. While it broadens access to energy-efficiency grants beyond traditional benefit claimants, it relies on Local Authorities, Devolved Administrations, and Energy Suppliers to assess and approve households under flexible eligibility rules.
Role of Local Authorities
Local Authorities play a central role in ECO4 Flex by identifying eligible households within their jurisdiction—or in other areas if delegated authority has been granted.
To participate in ECO4 Flex, a Local Authority must:
- Publish a Statement of Intent (SoI) – declaring their participation and eligibility criteria.
- Assess households using local, flexible criteria based on health, income, property type, or age.
- Issue declarations confirming that a household meets the flexible eligibility criteria.
Flexible eligibility criteria may include:
- Households with low income but not receiving benefits.
- Residents suffering from health conditions such as cardiovascular or respiratory issues.
- Homes with poor EPC ratings (E, F, G) or inefficient heating systems.
Properties where older individuals (60+) are more vulnerable to cold.
Role of Energy Suppliers
Energy suppliers are obligated to meet ECO4 targets and may fulfill up to 50% of their requirements through ECO4 Flex referrals.
They can:
- Use their own data (e.g. energy debt history) to identify vulnerable households.
- Work directly with Local Authorities to assess and verify eligible applicants.
- Notify Ofgem of each project and supply supporting documentation.
Energy suppliers also coordinate with installers and Local Authorities to streamline the delivery of funded home improvements under the ECO4 scheme.
Role of Devolved Administrations
Local Authorities in Wales and Scotland, and their respective governments, also have authority to refer households for ECO4 Flex support.
Requirements for Devolved Administrations:
- Must issue a Statement of Intent (SoI).
- Must provide a formal declaration of household eligibility.
- Must comply with specific auditing and reporting responsibilities.
In areas where a Devolved Administration refers households directly, they follow similar procedures as Local Authorities but may be subject to additional governance under their regional policie
Aims of the ECO4 Flex Scheme
The ECO4 Flex Scheme was designed to widen access to energy-efficiency upgrades for vulnerable and low-income UK households. With over 12.6 million homes in the UK holding an Energy Performance Certificate (EPC) rating of D or below, this initiative aims to:
- Improve national energy efficiency.
- Lower household energy bills.
- Reduce carbon emissions.
- Help energy suppliers meet their government-set targets by April 1, 2026.
By offering flexible eligibility criteria through Local Authorities and devolved governments, ECO4 Flex ensures support reaches those most in need—even if they don’t receive traditional government benefits.
Who Qualifies for ECO4 Flex?
To qualify for ECO4 Flex, applicants must:
- Be a UK resident.
- Live in a property with an EPC rating of D, E, F, or G.
- Reside in an area where the Local Authority has submitted a Statement of Intent (SoI) and a declaration to Ofgem.
Once these criteria are met, households can qualify for funding through one of four flexible eligibility routes:
ECO4 Flex Eligibility Routes
Route 1: Household Income Threshold
You may qualify if your total gross household income is £31,000 or less.
Income must be verified for all adults (18+) living in the property (e.g., elderly residents, lodgers).
Evidence may include:
- Tax returns or P60
- Pension statements
- P45 (last 3 months)
- Recent 3 months’ payslips
- Tenancy agreements or council tax documents to confirm household members
Route 2: Proxy Targeting
This route supports those in properties with EPC ratings of E, F, or G. You must meet at least two of the following proxies:
- Home is in the bottom 3 deciles of the LSOA or Index of Multiple Deprivation
- Household receives Council Tax rebate
- Vulnerability to cold is confirmed
- Household receives free school meals due to low income
- Household is supported by a Local Authority-run low-income scheme
- Referred by Citizens Advice or energy supplier
Route 3: NHS Referrals for Health Conditions
If someone in the household suffers from a long-term or severe health condition, the home may qualify for funding through an NHS referral.
Health conditions include:
- Cardiovascular disease
- Respiratory issues (e.g., asthma, COPD)
- Immunosuppressive disorders
- Limited mobility
A referral letter must be signed by a:
- GP (General Practitioner)
- NHS Trust
- NHS Trust Board
Route 4: Bespoke Targeting
For those who don’t qualify via Routes 1–3 but still experience fuel poverty or cold-related risks, a Bespoke Application can be made directly to the Department for Energy Security and Net Zero (formerly BEIS).
Each case is reviewed individually by a BEIS panel to determine grant eligibility.
Can’t Qualify Through ECO4 Flex? Try the Great British Insulation Scheme!
If you’re struggling with high energy bills and an inefficient home but don’t meet ECO4 Flex criteria, the Great British Insulation Scheme (formerly ECO Plus) could be your next step.
This scheme targets:
- Homes with EPC rating D or below
- Households not receiving traditional government benefits
You may still be eligible for free or heavily subsidized insulation and heating upgrades.
Frequently Asked Questions (FAQs)
What is the ECO4 scheme and how does it help UK households?
The ECO4 Scheme (Energy Company Obligation Phase 4) is a government-backed initiative that helps low-income and fuel-poor households improve their home’s energy efficiency. It provides free or subsidized upgrades like boiler replacements, insulation, heat pumps, and solar panels. By reducing energy consumption, the scheme aims to cut household bills, lower carbon emissions, and improve home comfort.
Who qualifies for ECO4 funding?
You may be eligible for ECO4 if:
- You own or privately rent your home (with landlord consent).
- Your property has a low EPC rating (D, E, F, or G).
- You receive a qualifying government benefit, such as:
- Universal Credit (UC)
- Income-based JSA or ESA
- Child Tax Credit (CTC)
- Pension Credit (Guarantee or Savings)
- Housing Benefit
- Working Tax Credit
- Universal Credit (UC)
. What is ECO4 Flex and how is it different from standard ECO4?
ECO4 Flex is a flexible referral route under the ECO4 scheme that allows Local Authorities, Devolved Administrations, or energy suppliers to identify eligible households not receiving government benefits but still at risk due to:
- Low income (under £31,000 per year).
- Health conditions worsened by cold homes.
- Poor housing quality (low EPC rating).
- Location in a deprived area (LSOA).
It’s designed to ensure no vulnerable household is left behind, even if they don’t meet the standard benefit-based criteria.
How long does it take to receive ECO4 grant upgrades?
Installation timelines vary based on the measure and approval process. Here’s a rough guide:
Measure | Estimated Time from Approval |
Boiler Replacement | From 2 weeks |
Insulation (loft, wall, floor) | From 2 weeks |
Air Source Heat Pump + Solar PV | From 4 weeks |
Electric Storage Heaters + Solar | From 4 weeks (DNO dependent) |
Final timing depends on survey, installer availability, and any required planning permissions.
What documents do I need to apply for ECO4 or ECO4 Flex?
To verify your eligibility, you may be asked to provide:
- Proof of benefits (e.g. Universal Credit award notice).
- Income verification (e.g. P60, payslips, pension statements).
- Proof of address and residency (e.g. council tax bill, tenancy agreement).
- EPC rating report of your property.
- In some ECO4 Flex routes, a healthcare referral or Local Authority declaration may also be required.
