✅ Update: ECO4 Extended to December 2026
ECO4 has been extended and now runs until 31st December 2026, giving eligible homeowners more time to access free energy upgrades before the Warm Homes Plan launches.
If you've been thinking about upgrading your home's heating or insulation, the good news is that ECO4 has been extended to December 2026. And something even bigger is on the way. The government's Warm Homes Plan is coming with £13.2 billion in funding over five years, plus a £1.5 billion transition fund to bridge the gap between ECO4 and the new scheme.
For homeowners across Wales and South West England, this represents a significant opportunity. Here's what we know so far—and how you can prepare.
What's Changing?
ECO4 has been the main route for government-funded home energy upgrades since 2022. It's helped thousands of households across our region get new boilers, insulation, and heat pumps at little or no cost. The scheme has now been extended to 31st December 2026.
The Warm Homes Plan isn't just a replacement—it's a step up. The funding is ringfenced, the timescales are longer (five years of visibility for the industry), and there's a stronger emphasis on a fabric-first approach. That means insulating your home properly before upgrading your heating system, which leads to better long-term results and lower bills.
What Options Will Be Available?
While the full details are still being finalised, here's what we expect to be available under the Warm Homes Plan based on current government signals:
🏠 Insulation Upgrades
Loft insulation, cavity wall insulation, and external/internal wall insulation will remain central to the scheme. The fabric-first approach means insulation will often be the first step before any heating upgrades are considered. This is particularly relevant for older Welsh properties and period homes across the South West.
🔥 Boiler Replacements
Replacing old, inefficient boilers with modern condensing models will continue to be a key measure. If your boiler is over 10 years old, unreliable, or expensive to run, this could be your route to a warmer home and lower bills.
♨️ Air Source Heat Pumps
Heat pumps are expected to feature prominently in the new scheme, especially for off-gas-grid properties. With the Boiler Upgrade Scheme (BUS) running alongside, there may be combined funding routes available. This is particularly relevant for rural properties across West Wales and parts of the South West.
☀️ Solar Panels & Battery Storage
Solar PV and battery storage are likely to be included as part of whole-house upgrade packages. Generating your own electricity can dramatically reduce bills, and battery storage means you can use that energy even when the sun isn't shining.
🌬️ Ventilation Improvements
As homes become better insulated, proper ventilation becomes essential. Mechanical ventilation with heat recovery (MVHR) and other ventilation strategies will be part of the whole-dwelling approach, ensuring homes are warm, efficient, and healthy.
The Landscape for Wales
Wales faces unique challenges when it comes to energy efficiency. Many homes are older, built with solid stone or solid brick walls, and located in areas with limited gas grid coverage. Fuel poverty rates remain higher than the English average, particularly in West Wales and the Valleys.
The Welsh Government has its own complementary programmes alongside UK-wide schemes. Local authorities in Swansea, Neath Port Talbot, Carmarthenshire, Pembrokeshire, Cardiff, and Bridgend have all been active partners in delivering ECO4 upgrades, and we expect this to continue under the Warm Homes Plan.
For Welsh homeowners, the combination of UK government funding and local authority flex schemes should mean more households can access support—even those who may not have qualified under ECO4's stricter criteria.
The Landscape for South West England
South West England has a significant number of off-gas-grid properties, particularly in rural areas of Bristol, Bath, Gloucestershire, and Somerset. These homes often rely on expensive oil or electric heating, making them prime candidates for heat pump installations and insulation upgrades.
The Home Upgrade Grant (HUG) has already been supporting off-gas-grid homes in the region, and the Warm Homes Plan is expected to build on this. Housing associations across Bristol and Bath have been proactive partners—we've already helped upgrade 50 properties with one Bristol housing association alone.
With five years of ringfenced funding, there's real stability for homeowners and the industry to plan ahead, rather than rushing to meet short-term deadlines.
Who Will Be Eligible?
Eligibility criteria are still being confirmed, but based on current signals, the Warm Homes Plan is expected to target:
- Low-income households — those on qualifying benefits such as Universal Credit, Pension Credit, or Child Benefit
- Households in fuel poverty — spending a disproportionate amount of income on energy
- Properties with poor energy ratings — EPC bands D, E, F, or G
- LA Flex routes — local authority discretionary pathways for households that don't meet standard benefit criteria but are still vulnerable
- Off-gas-grid homes — particularly for heat pump and renewable energy measures
What Should You Do Now?
If you think you might qualify under ECO4, don't wait. The scheme runs until December 31st, 2026, but installation slots fill up and the process takes time from survey to completion.
If you've been turned down before, it's worth checking again. Eligibility criteria may have changed, and the Warm Homes Plan could open new routes that weren't previously available.
If you're not sure where you stand, the best first step is a free assessment. We'll look at your property, your circumstances, and your options—no pressure, no obligation.
Find Out What You're Eligible For
Book a free, no-obligation assessment with our team. We'll check your eligibility, survey your property, and explain exactly what options are available to you under ECO4 now or the Warm Homes Plan when it launches.
We cover all of Wales and South West England. No cost, no obligation.