ECO Scheme Landlord UK 2026 — ECO4, GBIS, Boiler Upgrade Scheme, and Warm Homes Plan Energy Grants

Energy Company Obligation (ECO4) — free measures for eligible properties

ECO4 is the fourth iteration of the Energy Company Obligation scheme, running from April 2022 to March 2026 (with successor funding under the Warm Homes Plan from 2026):

• How ECO4 works: Large energy suppliers (those with 150,000+ domestic customers) are legally obligated by Ofgem to fund energy efficiency measures for eligible households. Suppliers either deliver measures directly or pass the obligation to third-party installers and contractors. For landlords, this means that measures such as loft insulation, cavity wall insulation, solid wall insulation, and low-carbon heating can be installed free of charge if the property and tenant meet the eligibility criteria
• Standard ECO4 eligibility — tenant benefits: Under the standard eligibility criteria, the occupants of the property must be in receipt of at least one means-tested benefit — including Universal Credit, Pension Credit, Child Tax Credit, Working Tax Credit, Housing Benefit, Income Support, or income-based Jobseeker's Allowance. The landlord does not need to receive benefits — it is the tenant's eligibility that determines access to ECO4 under the standard route
• What measures are available under ECO4: Qualifying measures include: loft insulation; cavity wall insulation; solid wall insulation (internal or external); underfloor insulation; flat roof insulation; park home insulation; room-in-roof insulation; air source heat pumps (where appropriate); ground source heat pumps; solar PV panels; first-time central heating systems; smart heating controls. The installer and energy supplier determine which measures are appropriate and cost-effective for the property
• Landlord obligations under ECO4: Where a tenant requests ECO4 measures and the landlord is approached by an installer, the landlord must give consent to the installation works (as the property owner). The landlord cannot charge the tenant for the installation — the measures are funded by the energy company. The improvements become part of the property and benefit from the improved EPC rating; the landlord retains the improved property at the end of the tenancy
• ECO4 and MEES compliance: Measures installed under ECO4 count fully towards the property's EPC rating. A landlord whose property has an EPC F or G rating may be able to achieve EPC E (the current MEES threshold) or EPC C (the proposed future threshold) through ECO4-funded improvements at no cost. This is particularly valuable for landlords of older properties with solid walls who would otherwise face very high improvement costs

Local Authority Flex (LA Flex) — widening access for landlords

LA Flex allows local authorities to extend ECO4 eligibility beyond the standard means-tested benefits criteria:

• What is LA Flex: Under the Local Authority Flexible Eligibility route, local councils can declare households as eligible for ECO4 measures even if the occupants do not receive the qualifying means-tested benefits. The local authority issues a 'statement of intent' identifying additional eligible groups — typically households in fuel poverty, households with a low income (below a local authority threshold), or households with a child or adult at risk. The eligibility criteria vary by local authority
• How landlords access LA Flex: A landlord who believes their property (or their tenant) might qualify under LA Flex should: (1) contact the relevant local authority housing or energy team to check if a LA Flex statement of intent is in place; (2) check whether the property and tenant meet the local authority's additional eligibility criteria; (3) apply through an Ofgem-registered ECO installer who is registered to deliver LA Flex measures. Many local authorities publish their LA Flex criteria on their websites
• Landlord-led applications: Even without a tenant on qualifying benefits, landlords can proactively approach ECO installers and energy companies to enquire about eligibility under LA Flex. Some installers and energy suppliers operate 'landlord portals' or direct application routes for rental property owners in LA Flex participating areas
• No obligation on the landlord to match funds: Unlike some green finance products (such as green mortgages or energy efficiency loans), ECO4 and LA Flex measures do not typically require any landlord contribution. The full cost of qualifying measures is funded by the energy supplier's ECO4 obligation. The landlord's role is to consent to the works and ensure access is available

Great British Insulation Scheme (GBIS) — single insulation measure for EPC D-E properties

The Great British Insulation Scheme runs alongside ECO4 and focuses on delivering a single, high-impact insulation measure to properties in the EPC D-E rating band:

• GBIS scope and focus: GBIS is designed to deliver insulation measures to properties that are not the worst performers (F-G rated) but still have significant room for improvement (D-E rated). The scheme funds a single insulation measure — typically loft insulation, cavity wall insulation, or solid wall insulation — rather than the comprehensive package of measures available under ECO4
• GBIS Group A — means-tested benefits: Households receiving means-tested benefits and living in a property with an EPC D-G rating qualify for GBIS Group A. For private rented properties in this group, the landlord must consent to the works; the tenant's eligibility via benefits is the qualifying criterion
• GBIS Group B — wider eligibility: GBIS Group B extends eligibility to households in properties with an EPC D or E rating in council tax bands A-D, regardless of income or benefits. This is the key route for landlords with middle-income tenants who would not qualify for ECO4. A landlord with a property rated EPC E in council tax band C may be able to access GBIS Group B measures free of charge without any benefit eligibility check
• What GBIS funds: Qualifying measures under GBIS include loft insulation (to 270mm), cavity wall insulation, solid wall insulation (internal or external), flat roof insulation, underfloor insulation, and park home insulation. The scheme does not fund heat pumps or solar panels — for those, ECO4 or the Boiler Upgrade Scheme is the relevant route
• GBIS and MEES: A property currently rated EPC E that receives GBIS-funded loft insulation or cavity wall insulation may achieve EPC D or better — but this may not be enough to meet proposed future MEES requirements (EPC C for new tenancies from 2028). Landlords should commission a full EPC assessment after GBIS measures are installed to determine whether additional works are needed and whether further funding is available

Boiler Upgrade Scheme (BUS) — £7,500 heat pump grants for landlords

The Boiler Upgrade Scheme provides capital grants for replacing fossil-fuel boilers with low-carbon heat pumps in England and Wales:

• BUS grant amounts: The Boiler Upgrade Scheme (BUS) provides: £7,500 for air source heat pumps (ASHP); £7,500 for ground source heat pumps (GSHP); and £5,000 for biomass boilers. The grant is paid directly to the MCS-certified installer and reduces the installation cost to the landlord by the grant amount. The property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation — or the landlord must install the insulation first
• Landlord eligibility for BUS: Private landlords can apply for BUS grants through an MCS-certified installer. There is no income test for BUS — it is available to all property owners including buy-to-let landlords, regardless of tenure or tenant income. The grant is per installation, not per landlord — a portfolio landlord can apply for BUS on multiple properties
• BUS application process: The application for a BUS grant is made by the MCS-certified installer (not the landlord directly). The landlord selects an MCS-certified installer, agrees the heat pump system to be installed, and the installer applies for the BUS voucher before installation. The voucher must be issued before the installation commences — retrospective applications are not accepted. Installation must be completed within 3 months of the voucher issue date
• Minimum insulation requirement for BUS: To qualify for BUS, the property must have a valid EPC showing no recommendations for loft insulation (where there is accessible loft space and less than 100mm of existing insulation) or cavity wall insulation (where the walls have unfilled cavities). If the EPC contains these recommendations, the insulation must be installed first (potentially using ECO4 or GBIS) before the BUS application
• BUS and MEES compliance: Installing a heat pump under BUS will typically produce a significant improvement in EPC rating — an old gas boiler replaced with an ASHP can move a property from EPC D or E to EPC B or C depending on the property's insulation standard. This makes BUS a highly effective route to MEES compliance for landlords with inadequately insulated but otherwise structurally sound properties

Frequently asked questions