The phase-out of the ECO leaves a critical policy gap in funding home energy improvements for low-income households across the UK. While the government aims to launch a replacement scheme by early 2027, key decisions surrounding its core objectives, delivery mechanisms, and targeting remain unresolved.

Over an initial scoping period, Nesta synthesised stakeholder needs and established six potential delivery models built from eight core building blocks. Moving into this next phase of work, we are deepening our analysis of these options to form a strong "house view" on the trade-offs involved. By synthesising existing user research, stress-testing different approaches and generating fresh evidence, we seek to inform policy thinking at DESNZ and ensure future proposals are rooted in practical design and user needs.

Our goal is to influence the design of the UK’s next national household support scheme so it can successfully scale low-carbon heating and insulation to millions of low-income homes. By embedding user-centred research and test-and-learn insights into ongoing policy development, we aim to help create a scheme that addresses real user needs, lowers energy bills, and accelerates decarbonisation in line with Nesta’s sustainable future mission.

Low-income households face high energy bills, and often inefficient fossil fuel heating systems, but without the means to upgrade the fabric or technologies in their home. Previous support schemes often struggled with complex customer journeys, supply chain issues, and competing policy priorities. Without careful policy design, backed up by evidence, lessons from previous schemes and using a test-and-learn approach, a replacement scheme risks repeating past mistakes.

We are applying agile policy design, qualitative research, and service blueprinting to generate insights that can inform scheme design.

• Desk research and stakeholder interviews: we are speaking to a range of stakeholders to gather insights on their experience of existing low-income schemes and their ambitions for the new one.
• Blueprint and user journeys: we are mapping detailed customer end-to-end journeys and service blueprints to surface operational barriers, incentives, and delivery risks for low-income households.
• Red teaming and stress testing: we are systematically testing emerging scheme models against real-world constraints and wider project learnings to uncover potential unintended consequences.
• Evidence and policy engagement: we are building a clear, evidence-backed "house view" on preferred delivery models to contribute constructively to DESNZ policy development and wider sector discussions.

We would welcome speaking to other stakeholders on these activities. Please get in touch with Tom Leach ([email protected]) if you’d like to set up a call .