ECO4 and GBIS Explained

Rising energy costs and environmental targets have made energy efficiency a priority in the UK housing sector. To support homeowners and tenants in upgrading their properties, the government has introduced two key schemes: ECO4 and the Great British Insulation Scheme (GBIS). And while both aim to make homes warmer and more efficient, they serve slightly different purposes and audiences. Here’s what you need to know.

What is ECO4? 🏘️

The Energy Company Obligation (ECO4) is a government-backed initiative that obliges large energy companies to help low-income households improve the energy efficiency of their homes. It’s the fourth phase of the ECO scheme and runs until March 2026. Unlike previous versions, ECO4 takes a more comprehensive approach—targeting multiple aspects of a property’s energy use, such as insulation, heating systems, and even renewable technologies.

This scheme is especially aimed at people receiving certain income-related benefits and those living in homes with low EPC ratings, typically D or below. Its ultimate goal is to reduce household bills, cut carbon emissions, and improve living conditions for vulnerable and fuel-poor families.

What Can ECO4 Help With? 🛠️

ECO4 takes a “whole-house retrofit” approach, meaning that several energy upgrades might be done at once, depending on the property’s needs. Common improvements include loft insulation, cavity wall insulation, underfloor insulation, replacement of inefficient heating systems, and in some cases, the installation of solar panels or air source heat pumps.

Rather than applying for each upgrade separately, the property is assessed as a whole, and the installer recommends a package of improvements that will deliver the greatest energy savings.

Who Qualifies for ECO4? 🧾

To qualify for ECO4, you usually need to be in receipt of one or more eligible means-tested benefits such as Universal Credit, Income Support, or Housing Benefit. However, the scheme also includes a “flexible eligibility” option that allows local authorities to nominate households in need, even if they don’t meet strict benefit criteria.

The home must also meet certain requirements, particularly around EPC ratings, as the goal is to target homes that are currently inefficient.

What is the GBIS? 🧱

The Great British Insulation Scheme (GBIS) was introduced as a companion to ECO4, designed to reach a wider audience—particularly households that may not qualify for the full ECO4 scheme. GBIS is more focused in scope, aiming to deliver a single insulation measure per property, such as loft or cavity wall insulation.

This scheme supports both low-income households and those in lower Council Tax bands (A-D in England, A-E in Scotland and Wales) who may not receive benefits but are still facing high energy costs.

Who is GBIS For? 🧑‍💼

Unlike ECO4, which targets benefit recipients, GBIS is split into two main groups: the “low-income group” and the “general group.” The low-income group includes people receiving certain government benefits, while the general group includes homes that fall into the eligible Council Tax bands and have EPC ratings of D-G.

This allows a much larger portion of the population to benefit from insulation improvements—particularly useful for those who are struggling with bills but don’t meet the criteria for more comprehensive support.

How Much Will It Cost? 💷

Both schemes aim to provide improvements free of charge to qualifying households. In many cases under ECO4, all work is fully funded. With GBIS, the costs are also usually covered, but some homeowners in the general group may be asked to contribute a small amount, depending on the measure being installed and their circumstances.

Even when a contribution is required, the savings in energy bills can quickly outweigh the upfront cost.

Why These Schemes Matter 📈

The UK is under growing pressure to reduce domestic energy consumption and transition toward net-zero carbon emissions. Both ECO4 and GBIS support this mission by helping households cut energy waste, lower their monthly bills, and live in warmer, healthier environments.

For landlords and property investors, these schemes offer a way to upgrade properties, improve EPC ratings, and stay ahead of upcoming minimum energy efficiency regulations—all with minimal or no cost.

Summary 📌

ECO4 and GBIS are two powerful tools designed to improve the energy efficiency of UK homes. ECO4 provides a broad, deep retrofit approach for vulnerable households, while GBIS focuses on quick, single insulation upgrades for a wider group of residents. Both schemes can significantly reduce energy bills, improve comfort, and boost property value.

If you own or manage a property and aren’t sure where you stand, it’s well worth checking your eligibility—you might be surprised at what support is available.

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