A guide to the ECO4 scheme for landlords

Information for landlords on the energy-efficiency scheme designed to tackle fuel poverty and reduce carbon emmissions.

The Energy Company Obligation (ECO) is a UK government energy-efficiency scheme designed to tackle fuel poverty and reduce carbon emissions. Now in its fourth phase, known as ECO4, the scheme places emphasis on improving the energy performance of homes occupied by low-income and vulnerable households.

Landlords of eligible properties may qualify for fully funded energy-efficiency upgrades under ECO4. These improvements not only support tenants by reducing energy costs but also enhance long-term property value and help meet compliance standards related to energy performance.

Why ECO4 matters for private landlords

The ECO4 scheme presents an opportunity for landlords to improve their property portfolios while supporting broader environmental goals. Installing modern, energy-efficient systems can:

  • Improve the Energy Performance Certificate (EPC) rating of your property
  • Reduce energy costs for tenants
  • Strengthen property value and rental appeal
  • Support compliance with minimum energy efficiency standards (MEES)
  • Contribute to UK carbon reduction targets

Participation in ECO4 is not only financially practical but also aligned with long-term policy trends affecting residential lettings in the UK.

ECO4 scheme: Landlord and tenant eligibility requirements

To access ECO4 funding, properties and tenants meet specific eligibility conditions. 

Tenant Criteria

ECO4 applies where at least one tenant in the household receives one of the following qualifying benefits:

  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Income Support
  • Pension Credit Guarantee Credit
  • Working Tax Credit
  • Child Tax Credit
  • Universal Credit
  • Housing Benefit
  • Pension Credit Savings Credit
  • Child Benefit (with income thresholds and dependent children)

In addition to benefits-based eligibility, local authorities may also assess households under the Local Authority Flexible Eligibility (LA Flex) route.

Through LA Flex, eligibility is extended to include: 

  • A total household income is under £31,000 per year (before tax)
  • Someone in the home has a health condition made worse by the cold, such as:
    • Respiratory illness such as asthma
    • Cardiovascular issues
    • Mobility limitations such as arthritis
    • Cancer or immune disorders
    • Neurological conditions

Property criteria

The property must be located in England, Wales, or Scotland and must be a domestic dwelling. The property must have a current Energy Performance Certificate (EPC) rated at band D or below (D, E, F, or G) in order to benefit from the upgrades.

Check your EPC.

What energy-efficiency upgrades are available under ECO4?

A range of insulation, heating, and renewable energy solutions are available through ECO4. These are installed at no cost to eligible landlords and tenants, with funding provided directly to registered and accredited installers.

Common measures include:

  • Boiler upgrades – Replacement of outdated or inefficient boilers with modern A-rated models
  • Central heating systems – Installation of central heating in homes that lack it
  • Air source heat pumps and storage heaters – Low-carbon alternatives for space heating
  • Cavity wall insulation – Suitable for homes with unfilled cavity walls
  • Internal or external wall insulation – Improves heat retention and reduces draughts
  • Underfloor insulation – Reduces heat loss through ground floors
  • Solar photovoltaic (PV) panels – Generates electricity to offset demand from the grid

The measures installed will depend on the outcome of an in-home energy assessment, which is conducted by an authorised retrofit assessor. The assessment identifies the most appropriate upgrades based on the property type, construction, and current heating system.

Further Reading: ECO4 Guidance and Documentation

Installation standards and quality assurance

All works completed under ECO4 must comply with government-mandated standards. This includes:

  • PAS 2030:2019 – Specification for the installation of energy efficiency measures
  • TrustMark Certification – Ensures installers are registered and operating within recognised quality frameworks

Recognising the broader impact of ECO4

The ECO4 scheme is part of the UK’s long-term strategy to decarbonise housing and alleviate fuel poverty. By participating, landlords play an active role in meeting national carbon reduction targets, supporting public health, and strengthening community resilience.

From a tenancy management perspective, homes that are warmer and cheaper to heat tend to have:

  • Higher tenant satisfaction
  • Reduced turnover rates
  • Fewer maintenance issues related to damp or cold

Investing in energy efficiency may also assist landlords in meeting anticipated future requirements, including proposed regulations for all rental homes to achieve EPC Band C by 2028.

To take full advantage of the ECO4 scheme, contact Consumer Rights by using our eligibility checker. Consumer Rights will discuss eligibility with your tenants, talk them through the application process, and find a local, highly vetted and government approved installer to complete the upgrades.

For landlords committed to improving their properties and supporting national energy goals, ECO4 provides a practical route to achieving both.

 

ECO4 Support Available: