26 November 2025

Garry Felgate, CEO of The MCS Foundation, said, “Today’s Budget is a partial step towards cutting the cost of electricity in Britain. However, doing so by ending funding for the Energy Company Obligation (ECO4), which has supported low-income households to access affordable, secure, clean energy, is a mistake. 

“This will also be damaging to the small-scale renewable energy industry – one of the UK’s fastest growing sectors and one whose continued growth the government should be supporting. Businesses need certainty, not a cliff-edge that could damage supply chains, stifle growth, and put countless jobs at risk.  

“While the end of this funding is deeply disappointing, the partial removing of social and environmental levies from the cost of electricity bills is a step in the right direction. This will help incentivise the switch to clean heat, further cut the cost of electricity, and have the greatest impact for the most vulnerable.  

“Despite speculation, the Boiler Upgrade Scheme (BUS) was not impacted by today’s Budget. The BUS has helped tens of thousands of households across the UK access secure, clean heating and been integral to the record growth of the heat pump sector. Its continuation in its current form will be welcome news for consumers and industry alike, and provide much-needed confidence for installers across England and Wales.  

“We urge the Government to now provide details of how the gap left by ECO4 will be filled to ensure low-income households have access to the critical technologies that can both help deliver lower bills and tackle fuel poverty. 

“While today’s efforts to cut the cost of electricity will be welcomed by many, there is more the Government must do to ensure everyone has access to clean, affordable energy and that heat pumps are always cheaper to run than fossil fuel boilers. Today’s progress must be built on by moving the cost of remaining levies off electricity bills.”