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Energy Company Obligation

Asked by Mr Andrew SnowdenConservativeDepartment for Energy Security and Net ZeroTabled Answered 3 December 2025UIN 95295

The question

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of potential changes in the level of demand for insulation and heating upgrades following the reduction of the Energy Company Obligation (ECO).

Answered by Martin McCluskey

The government recognises that demand for energy efficiency upgrades will remain strong. To bring energy bills down for all, the decision has been made not to continue the Energy Company Obligation when the current scheme ends.

The government has instead committed an additional £1.5bn of grant funding, which will be directed to upgrading low-income households, benefiting those in fuel poverty. The details of this will be set out in the Warm Homes Plan.

The government continues to improve home energy efficiency through schemes, such as the Warm Home: Social Decarbonisation, Warm Homes: Local Grant and the Boiler Upgrade scheme.

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