Warm Homes Plan vs ECO4: What Has Changed for London Homeowners?

ECO4 ran from 2022 to 31 March 2026. It funded insulation, heating upgrades, and other energy improvements in eligible homes across England, Scotland, and Wales. From April 2026, its successor is the Warm Homes Plan, and the way funding is delivered has changed in some important ways.

How ECO4 worked

ECO4 was delivered primarily through energy suppliers. Large suppliers were legally required to meet targets for improving the energy efficiency of domestic properties. Households applied through their energy supplier or through third-party referral companies. The scheme covered England, Scotland, and Wales.

Eligibility under ECO4 was largely benefits-based, with a small proportion of referrals available through a Local Authority Flex route. Properties needed an EPC rating of D or below to qualify for most measures.

What the Warm Homes Plan changes

The Warm Homes Plan shifts the emphasis. Rather than energy suppliers leading delivery, the primary route for private homeowners and renters is now the Warm Homes: Local Grant, administered by local councils. This means your London borough council holds the funding allocation and manages referrals for your area.

Key differences include:

Budget: The Warm Homes Plan has a budget of around £13.2 billion over this parliament, larger than ECO4.
Delivery: Led by local authorities rather than energy suppliers, giving councils more control over who is referred and how the scheme is promoted locally.
Local Authority Flex: The LA Flex route is more explicitly built into the Warm Homes Plan. Each borough can refer households that do not receive qualifying benefits but are considered fuel poor or on a low income. The criteria vary by borough.
Social housing: A separate Warm Homes: Social Housing Fund operates alongside the Local Grant for social housing providers.

What has stayed the same

Several core elements remain consistent between the two schemes:

Properties must have an EPC rating of D, E, F, or G to qualify in most cases.
Benefits-based eligibility criteria are broadly similar, covering Universal Credit, Pension Credit, Housing Benefit, and other qualifying benefits.
A PAS 2035 Retrofit Assessment is required before any funded work can begin.
Works must be carried out by accredited installers under the oversight of a Retrofit Coordinator.

What this means practically for London households

If you were eligible under ECO4, you are likely to be eligible under the Warm Homes Plan. The main difference is who you contact. Rather than going through your energy supplier, the starting point is now your local London borough council's housing or energy team.

Some boroughs have been quicker than others to promote the scheme and set up referral processes. If you have not heard about it through your council, that is not unusual. Contacting your borough directly, or using an independent guidance service, is the most reliable way to find out what is available in your area.

A note on timing

Because the Warm Homes Plan is still being rolled out, some boroughs may have limited allocations available at any given time. It is worth enquiring early rather than waiting, as funding is not unlimited and allocations can be spent down during the year.