If you’ve seen headlines about free insulation or subsidised heat pumps in 2026 and wondered whether any of it applies to you, ECO5 is probably what they’re talking about. It’s the latest phase of the Energy Company Obligation — the scheme that makes large energy suppliers fund energy efficiency upgrades for households that can’t afford them. And after a few years of ECO4, the scheme has been updated and extended for 2026 onwards.

Here’s what’s actually on offer, who’s genuinely eligible, and how you’d go about getting it.

What ECO Actually Is

The Energy Company Obligation is a government scheme that requires the UK’s larger energy suppliers — Octopus, British Gas, OVO, EDF, E.ON, Scottish Power, and others above a certain size threshold — to fund energy upgrades in low-income and fuel-poor households. Ofgem administers it; the suppliers have to meet their obligations or face fines.

The key point is that the money doesn’t come through a government application form. It flows through the energy suppliers and through a network of approved installers. You don’t apply to a central pot; you apply to suppliers or their installation partners, who then assess your eligibility and arrange the work.

ECO5 launched in 2026 as the successor to ECO4, running through to 2028. The obligation targets have been updated, and the list of eligible measures has been expanded slightly compared to ECO4.

What Measures Are Available

The scheme covers a range of upgrades. Which ones you can access depends on your property and what assessors determine will make the biggest difference to your energy bills.

Insulation is the most commonly funded measure: loft insulation, cavity wall insulation, solid wall insulation (both internal and external), underfloor insulation, and room-in-roof insulation. For older properties that haven’t been insulated, this is often where the biggest bill reductions come from.

First-time central heating — if you have no central heating at all (electric storage heaters, for example), ECO5 funding can cover installation of a full gas central heating system or, increasingly, an air source heat pump system.

Heating upgrades for households that meet the fuel poverty criteria: replacing old, inefficient boilers and heating systems. Heat pump installations are covered, with the ECO5 grant often stackable on top of the Boiler Upgrade Scheme grant for heat pumps.

Smart heating controls — in some cases, funded alongside a larger upgrade package.

Who’s Eligible

This is the bit that trips people up. ECO5 is not a universal scheme. There are specific eligibility criteria, and you need to meet at least one of them.

The most straightforward route is being on a qualifying benefit. These include: Universal Credit, Pension Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, and some others. If you receive any of these, you’re likely to be in scope.

There’s also a broader eligibility category called the “fuel poverty” route, which allows households not on qualifying benefits to access funding if they’re living in a low EPC-rated property (D, E, F, or G rating) with a low household income. The income thresholds vary by household composition. A single person under 60 might qualify at a different threshold to a family with children — the scheme uses an affordability calculator.

Social housing tenants can be covered too, with local authorities and housing associations accessing ECO5 funding through a separate local authority flex element.

The honest answer is that you need to get your situation assessed. The eligibility rules are detailed enough that a quick online check won’t tell you whether you qualify. An ECO5-registered installer or your energy supplier’s free assessment service will give you a definitive answer.

How to Apply

You can’t apply directly to Ofgem or the government. The routes to ECO5 funding are:

Through your energy supplier: Most of the large suppliers have ECO5 teams or approved installer networks. Call the general customer service line and ask about the Energy Company Obligation. They’ll pass you to the right team or refer you to an installer.

Through a local authority: Many councils actively promote ECO5 and can refer you to approved installers. The government’s Simple Energy Advice service (simpleenergyadvice.org.uk) has a referral pathway.

Through an ECO5-registered installer: Any Trustmark-registered or MCS-certified installer working with ECO5 can assess your eligibility. They make money through the installer network, not by charging you, so the initial assessment should be free.

Be cautious about cold-call approaches — the ECO scheme has been used as cover for some questionable salespeople over the years. Always check that an installer is Trustmark-registered before agreeing to anything.

Combining ECO5 with Other Grants

ECO5 funding for a heat pump can be combined with the Boiler Upgrade Scheme grant (£7,500 for air source heat pumps, £7,500 for ground source) if you meet BUS eligibility. The BUS is open to a wider range of households than ECO5, and the two can stack. For eligible households, combining both significantly reduces the out-of-pocket cost of a heat pump installation.

The Warm Home Discount — a one-off £150 reduction on your electricity bill — is a separate scheme and doesn’t interact directly with ECO5 upgrades.

If your home is in a rural area without gas, the Home Upgrade Grant (HUG2) has also been active in 2025-26, targeting specifically off-gas-grid homes. It’s worth checking whether your local authority has HUG2 funding available alongside ECO5.

Is Your Home Likely to Qualify?

The properties that most often qualify for significant ECO5 upgrades are older homes with poor insulation, low EPC ratings, and occupants on lower incomes. A 1960s semi-detached with cavity walls that have never been filled, occupied by a household on Universal Credit, would be a strong candidate. A well-insulated newbuild occupied by someone on an average salary is unlikely to access ECO5 funding.

If you’re not sure, the Trustmark website has an installer finder and most suppliers offer free checks. It takes about 20 minutes and costs nothing to find out whether your household qualifies.