Opportunities for improvement for ECO4 to deliver outcomes for health-vulnerable households

This report from Energy Systems Catapult explores how ECO4 performs when deployed to deliver health outcomes.

This report follows a trial with ScottishPower which sought to target access to Energy Company Obligation 4 (ECO4) funding for vulnerable households; identifying people whose health is made worse by living in a cold home and offering free home improvement measures via the Warm Home Prescription® service.

The findings show that despite the clear policy intent, ECO4’s structure and delivery mechanisms make it inaccessible for many of the people it is meant to support.

Key findings

• Just four out of 42 (9.5%) surveyed homes qualified for a fully funded ECO4 retrofit due to misaligned funding rules and the whole-house approach.
• The average contribution required from residents was £17,850 – unaffordable for most vulnerable households.
• Unlinked or decentralised datasets make targeting eligible homes difficult for public sector bodies, leading to installer-led, profit-driven lead generation.
• Complex rules and admin-heavy procedures limit innovative health-centred delivery models.
• Scheme structure leads to target- and measures-driven delivery over health or consumer-centred outcomes.

Recommendations

To improve outcomes and target health-vulnerable populations more effectively, the report outlines seven reform principles:

• Local targeting by NHS and local authorities, rather than installer-led targeting
• Integrated health, housing, and benefits data
• Broader criteria for fully funded jobs
• Independent advice throughout the retrofit journey
• Longer-term ECO schemes for supply chain stability
• A people-first approach focused on lived outcomes
• A joined-up health, housing and energy policy framework.