What’s Coming: ECO4, the Warm Homes Plan & the Warm Homes Obligation

The UK government is gearing up for the next phase in its drive to make homes warmer, greener and cheaper to run. What many know now as ECO4 (the fourth phase of the Energy Company Obligation) is approaching its end date, and a number of new or updated schemes are being introduced under the umbrella of the Warm Homes Plan. Among those changes is the proposed renaming / rebranding of the ECO scheme to the Warm Homes Obligation, with additional measures and eligibility criteria changes. Here’s a breakdown of potential changes, what likely will stay the same, and what it means for households.

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Where we are: ECO4

ECO4 is the current energy efficiency / home heating support scheme in Great Britain. Some of its key features:

• It started in mid-2022 and runs until 31 March 2026. 
• Its aims include reducing fuel poverty, lowering energy bills, reducing carbon emissions, particularly by improving energy efficiency in the least efficient homes (EPC ratings D-G) and vulnerable households. 
• Key measures include insulation (loft, cavity wall, solid wall where eligible), heating upgrades, renewable heating where applicable, etc. 
• Properties in EPC Bands D & E must reach at least Band C; properties in Bands F & G must reach at least Band D under the scheme’s minimum requirement. 

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What’s Changing: Warm Homes Plan & Warm Homes Obligation

With ECO4 due to end in 2026, the government has been consulting and planning its follow-on schemes under the Warm Homes Plan. As part of that, the term Warm Homes Obligation has been mentioned. Some of the changes / proposals may include:

1. Renaming and expanding scope The scheme is expected to be rebranded (or succeeded) by the Warm Homes Obligation. One report said that batteries will be more available in the revamped version. 
2. Extension of ECO4 end date (short term) There is a consultation (Aug 2025) proposing an extension of ECO4 by 6 to 9 months beyond March 2026 to allow continuity while the transition to future obligations happens. 
3. Carry-over of delivery / scoring Under the extension, there are proposals that suppliers may carry over some performance from ECO4 into the next obligation. This includes converting past performance measures into whatever scoring system the future scheme uses. 
4. New or expanded funding streams and grants
   • Warm Homes: Local Grant is a scheme beginning in 2025, funded via local authorities, to provide upgrades (insulation, low-carbon heating, etc.) to eligible low income households in EPC bands D-G. 
   • The government’s Warm Homes Plan has committed significant funding across social housing, private housing, and other sectors. 
5. Focus on inclusive eligibility Many of the new or modified schemes aim to continue helping low income / fuel poor households, both on and off the gas grid, and include private renters and homeowners. There will likely be greater attention to deprived areas and income thresholds. 
6. Measures being considered
   Battery storage is technically already eligible under ECO4, particularly when paired with solar PV. However, the way the banding improvements are calculated often makes it financially unviable for installers to deliver these measures. The proposed Warm Homes Obligation may look to address this issue, ensuring solar and battery solutions can be deployed more widely and profitably. 

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What Will Stay the Same (Mostly)

While changes are coming, certain core aspects will likely carry on or be similar:

• The goal of reducing fuel poverty by improving energy efficiency in the worst performing homes.
• Requirement tied to EPC / energy performance (D-G properties).
• Use of local authorities, obligated suppliers, and grant-based funding via government to deliver retrofits, insulation, heating upgrades.
• Minimum performance thresholds (making homes reach certain EPC bands).

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What Households Should Know / Do

If you’re a homeowner, tenant, or landlord, here’s what you should keep an eye on and perhaps act on ahead of changes:

• Check your home’s EPC rating now. If it’s D, E, F or G, you may be eligible under both current ECO4 and the upcoming schemes.
• Keep documentation: Proof of benefits, income, energy bills, etc., to show eligibility.
• Be aware of local authority schemes: Because some of the Warm Homes Local Grant support is delivered via councils; check if your local authority is participating, and when they open applications.
• Act early: Since ECO4 ends in March 2026 (or slightly later if extended), there may be a rush or delays as demand picks up. If you’re eligible, you might not want to wait.
• Watch out for additional measures: Solar PV, battery storage, low-carbon heating (e.g. heat pumps) may become more available under the new schemes. If your home suits those technologies, make sure you ask about them.

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What We Don’t Yet Know

There are still some open questions, uncertainties:

• What the detailed criteria for the Warm Homes Obligation will be (exactly which measures are eligible, cost caps, how scoring works, etc.).
• How the funding will be allocated geographically and by tenure (owner vs private renter vs social housing).
• How consumer protection, quality standards, and oversight will be modified or strengthened under the new scheme.

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Conclusion

The evolution from ECO4 to the Warm Homes Obligation (within the Warm Homes Plan) looks set to bring expanded support, more readily available technologies (like batteries), and continued focus on helping those in most need. It’s part of a broader effort to tackle fuel poverty, improve housing quality, and push toward the UK’s net zero goals.

For now, if you’re eligible under ECO4 or may be under the upcoming schemes, now’s a good time to explore your options and get prepared. Fairway Energy will keep monitoring developments and updates as more details emerge.