Despite the continuing push for net zero, the end of a Government-funded programme to tackle fuel poverty could cost up to 2,000 Liverpool city region jobs, it is claimed. Tony McDonough reports

Up to 2,000 Liverpool city region jobs could be at risk when a Government-funded energy efficiency comes to an end in April 2026.

Launched in 2022, the Energy Company Obligation (ECO4) is now in its fourth and final phase. It is designed to tackle fuel poverty, reduce household energy bills, improve home heating, and help lower carbon emissions in support of net zero goals.

ECO4 obliges medium and large energy suppliers to fund and deliver energy efficiency and heating improvements to eligible low-income, vulnerable, or fuel-poor households. It has benefited around 18,000 households in Liverpool city region.

This scheme has also seen the mushrooming of smaller contractors who have expanded to meet the demand for there retrofitting of homes with measures such as insulation, solar panels, heat pumps and boiler upgrades.

According to an Installation Assurance Authority Federation (IAAF) survey an estimated 26,390 job in the industry at risk when the funding is withdrawn. Merseyside alone faces the potential loss of up to 2,000 skilled roles.

This is according to entrepreneur Zac Corcoran, co-founder of Liverpool energy efficiency firm Zenith Eco Solutions. He founded Zenith in 2018 with Liam Owens. Both are plumbing and heating engineers. Latest annual revenues are around £10m.

“Without a successor fuel poverty programme, will have a severe and disproportionate impact on Merseyside,” Zac told LBN. “The region is home to more than 120 businesses directly involved in energy efficiency, retrofit delivery, and associated supply chains.

“They employ an estimated 2,800 skilled workers whose employment is heavily dependent on the scheme. The loss of 2,000 jobs would represent 8% of the national total, despite Merseyside accounting for only 4% of the UK population.”

This, adds Zac, is because of the disproportionate number of people in the region living in fuel poverty. Along with the IAAF, he is calling on the Government to consider a similar scheme after April.

He explained: “SMEs in Merseyside derive, on average, 80% of their business activity from ECO-funded work, leaving them highly exposed to the scheme’s closure

“Already, several Merseyside firms announced redundancies ahead of Christmas 2025, with more than half of surveyed local organisations expecting to lay off up to 20 installation operatives each in the next six months.

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“The implications extend well beyond employment. ECO4 funding has been the primary route for over 18,000 low-income Merseyside households to access insulation, heating upgrades, and other energy-efficiency measures at little or no cost.

“Merseyside has one of the highest rates of fuel poverty in England, with 16.2% of households affected—compared to the national average of 13.4%. The loss of ECO4 support risks leaving thousands of households trapped in cold, damp homes.”