Chancellor pulls the plug on funding for energy upgrades
12th March 2026
You may have heard of the Energy Company Obligation (ECO). ECO is a government initiative obligating the top energy companies to distribute funding to installers, to implement energy efficiency upgrades.
Under ECO, eligible residents were entitled to free home improvements such as solar panels, central heating systems, insulation and more.
In November 2025, the Chancellor announced that ECO was being withdrawn.
What does this mean for local residents
Where work had already begun at home, or needed to be rectified, the work was able to be carried out and finished.
Residents who had been promised free upgrades from installers, but work hadn’t started, would no longer be able to have the work done for free.
Much like this elderly resident from the rural Wyre district. With the help of her daughter, this resident was looking to obtain a quote for energy efficiency home upgrades. They approached a company, trading as Impact Energy, who quoted for several upgrades. The resident was told they were eligible for grant funding towards solar panels, heat pump and loft insulation. The resident agreed and began preparing for the work, clearing and sorting the property, and preparing their elderly mother for the disruption to take place. After several months, the resident was informed by the installers that she would need to wait until April to see if they can receive the funding.
This company are not going to receive any funding in April, as ECO is not going to be reinstated.
What can residents do now?
Funding is still available with your Local Council, under the Warm Homes: Local Grant.
If you’ve been promised funding from installers or have been thinking about energy improvements click to apply for free.
If you’re unsure if you’ve been affected by ECO or would like to know more, contact the Cosy Homes Advice Team on 03306 061 488 – Option 3.
