For more than a decade, the Energy Company Obligation (ECO) scheme has quietly transformed the lives of millions of UK’s most vulnerable households. From installing loft insulation and new boilers to entirely transforming household energy systems, ECO has provided energy savings, warmth and safety to around 2.6m households since it was introduced in 2013.
The scheme has never been perfect; it has evolved through multiple redesigns, shifting regulations and varied political priorities. A recent National Audit Office report found clear failings in consumer protection and quality assurance over the years, and said the government created an overly complex system that was delivered with limited oversight. Yet, despite its imperfections, ECO has been a constant for households and the organisations that have supported them – there through six prime ministers, two heads of state, and a global pandemic.
It has become more than a policy mechanism, enabling a national ecosystem of experienced installers, trained assessors, compliance systems, and trusted delivery partnerships to be built in communities across the country. That is why I worry Rachel Reeves’ recent decision to abruptly end ECO4 from March 2026 without a clear, fully prepared transition into the (not yet released) Warm Homes Plan, represents an extraordinary and avoidable risk. I’m concerned this decision could jeopardise households that rely on this support, and destabilise the ecosystem of workers, organisations and supply chains that has taken more than a decade to build.
‘High energy costs and poor health’
The UK has the oldest and least energy efficient homes in Europe, and many people experience poor insulation, draughty construction, and outdated heating systems that lock them into higher energy costs and poor health outcomes. Cold and damp are not abstract policy problems, but daily realities that affect respiration, mental health and child development. Domestic buildings continue to represent a huge proportion of the UK’s national emissions, and making homes more energy efficient is a crucial step to reaching national climate commitments. The scale of this challenge demands long-term, coherent commitment, and not a sudden funding cliff-edge that undermines trust.
At a moment when households are already overwhelmed by high energy prices, confusing advice, and a rapidly changing retrofit landscape, the removal of this long-standing support mechanism sends a signal I find deeply concerning. Instead of clarity and reassurance, households may receive mixed messages about what help is available and who they can rely on. The Young Foundation’s research shows that households, especially those with overlapping vulnerabilities and complex living arrangements, already struggle to navigate the retrofit funding landscape – and lack of trust is a key challenge faced on the journey to home energy improvement. Trust is slow to build and quick to erode, and my fear is this policy decision risks undermining trust at scale.
Net zero home improvements
For many households, simply understanding eligibility, application processes, and the sequence of required assessments can be overwhelming. And this is before improvements can start. Even with support, people have described feeling disempowered, confused, or reliant on overstretched local organisations to guide them. By pulling the ECO scheme so abruptly, I worry the government risks widening existing inequalities, where able-to-pay households can progress with ease, and it becomes harder for those most in need to access improvements that would benefit their finances, health and safety the most.
Disruption translates into hesitancy. When schemes appear, disappear, and re-emerge under new plans and with altered rules, people lose confidence, and decisions are delayed or not taken at all, feeling that the risks are too high. It’s not irrational, it’s a direct response to policy instability, and it’s a major barrier to achieving the level of retrofit required for the UK to reach climate goals, alleviate pressure on the NHS, and improve the daily quality of live for millions of people. Stability matters. It matters for the families seeking warm, dry and affordable homes. It matters to organisations working tirelessly to help residents navigate a bewildering system. And it matters to skilled workers whose livelihoods depend on predictable, long-term commitment.
My research and experience suggests the path forward demands a re-commitment to long-term planning, transparent communication, and genuine partnership with residents, organisations and the retrofit workforce. Only with clear, trusted pathways and reliable infrastructure will we be able to achieve the scale of change required. Right now, the decision to halt ECO without a clear transition to the Warm Homes Plan feels like a step backwards, just when we need to be moving decisively forward. And my belief is that extending the scheme – even for just one more year – could allow for a more considered and ‘just’ transition to the Warm Homes Plan.
Read our research into achieving a just transition in retrotfits
Community wellbeing Housing and regeneration Inequality Posted on: 17 December 2025 Authors: Leonie Taylor,