Energy Company Obligation (ECO4) — free measures for eligible properties
- How ECO4 works: large energy suppliers obligated by Ofgem fund energy efficiency measures for eligible households — loft insulation, cavity wall insulation, solid wall insulation, air source heat pumps, solar PV, and first-time central heating can be installed free of charge
- Standard ECO4 eligibility — tenant benefits: occupants must be in receipt of a means-tested benefit (Universal Credit, Pension Credit, Child Tax Credit, Housing Benefit, Income Support, income-based JSA); the landlord does not need to receive benefits — it is the tenant's eligibility that determines access
- Landlord obligations: the landlord must consent to the installation works; cannot charge the tenant for ECO4 measures; the improvements become part of the property and the landlord retains the improved EPC rating at the end of the tenancy
- ECO4 and MEES: measures installed under ECO4 count fully towards the property's EPC rating — a property rated F or G may achieve EPC E or C through ECO4-funded improvements at no cost to the landlord
LA Flex — extending ECO4 to tenants without benefits
Local Authority Flexible Eligibility allows councils to declare households eligible for ECO4 even if they don't receive qualifying benefits. A landlord with a property in a LA Flex area whose tenant doesn't receive benefits may still be able to access free insulation or heating measures. Check with the local authority's housing or energy team.
Local Authority Flex (LA Flex) — widening access for landlords
- What is LA Flex: local councils issue a statement of intent identifying additional eligible groups — typically households in fuel poverty, low-income households, or households with a vulnerable person — extending ECO4 eligibility beyond the standard benefits criteria
- How landlords access LA Flex: contact the relevant local authority housing or energy team to check if a LA Flex statement of intent is in place; apply through an Ofgem-registered ECO installer registered to deliver LA Flex measures
- No contribution required: ECO4 and LA Flex measures do not typically require any landlord financial contribution — the full cost is funded by the energy supplier's ECO4 obligation
- Landlord-led applications: some installers and energy suppliers operate landlord portals or direct application routes for rental property owners in LA Flex participating areas
Great British Insulation Scheme (GBIS) — single measure for EPC D-E properties
- GBIS scope: funds a single high-impact insulation measure for properties rated EPC D-G — loft insulation (to 270mm), cavity wall insulation, solid wall insulation, flat roof insulation, underfloor insulation; does not fund heat pumps or solar panels
- GBIS Group A — means-tested benefits: households on benefits in a property rated EPC D-G qualify; landlord must consent to works
- GBIS Group B — wider eligibility: households in EPC D or E properties in council tax bands A-D qualify regardless of income — the key route for landlords with middle-income tenants who don't receive benefits
- Post-GBIS EPC: landlords should commission a full EPC assessment after GBIS measures to determine whether additional works are needed to meet proposed future MEES requirements (EPC C for new tenancies from 2028)
Boiler Upgrade Scheme (BUS) — £7,500 heat pump grants for landlords
- BUS grant amounts: £7,500 for air source heat pumps (ASHP), £7,500 for ground source heat pumps (GSHP), £5,000 for biomass boilers — paid directly to the MCS-certified installer, reducing the landlord's net installation cost
- Landlord eligibility: private landlords can apply for BUS grants through an MCS-certified installer — no income test, available to all property owners including buy-to-let portfolio landlords; grant is per installation so portfolio landlords can apply for multiple properties
- BUS application process: the installer (not the landlord) applies for the BUS voucher before installation; the voucher must be issued before installation commences — retrospective applications not accepted; installation must complete within 3 months of voucher issue
- Minimum insulation requirement: the property must have no outstanding EPC recommendations for loft insulation or cavity wall insulation; if such recommendations exist, insulation must be installed first (potentially using ECO4 or GBIS) before the BUS application
- BUS and MEES: replacing an old gas boiler with an ASHP typically moves a property from EPC D or E to EPC B or C — making BUS a highly effective route to MEES compliance for landlords with inadequately insulated but otherwise structurally sound properties