Energy Company Obligation
The question
To ask the Secretary of State for Energy Security and Net Zero, what plans his Department has for a successor to the Energy Company Obligation scheme (ECO4), including (a) a timetable for its introduction and (b) arrangements for the transition between schemes.
Answered by Martin McCluskey
The Government has decided not to replace ECO4 when it ends this year. While the scheme has played an important role, it has faced significant challenges, particularly around poor-quality installations.
This does not mean reducing support for low-income households. The Warm Homes Plan will provide targeted assistance through public funding and support the workforce to access new opportunities through £15bn of investment. The Government also announced at the Budget an additional £1.5bn in grant-funding for low-income families.
To support this transition, ECO4 has been extended until the end of 2026 to enable remediation and minimise disruption to the supply chain.
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