Any help for homes in the UK is essential today, especially due to the current energy crisis apparent across the country. There are government schemes that encourage and push suppliers to help people with their energy efficiency, which will be shared in this post. 

What is ECO? 

This is a scheme called The Energy Company Obligation that requires energy suppliers to improve the energy efficiency of homes in the UK. Running since 2013, there is now a new phase of the Government’s Energy Company Obligation called ECO4.

Within this obligation, energy suppliers deliver lifetime savings by introducing energy efficient measures across the UK, including Wales, England and Scotland. 

What is ECO3?

This was a previous phase associated with the Energy Company Obligation, which began in 2018 and most recently finished in March 2022. 

What is ECO4?

Introducing the latest and final phase of the Government’s Energy Company Obligation, which began in August 2022 and is scheduled to end on 31st March 2026. 

This version of the scheme is expected to run up until March 2026, with £4 billion worth of funding allocated to the scheme. 

Changes To ECO4

Firstly, changes to qualifying benefits have been made, including the removal of some disability benefits. In addition, the government has added Housing Benefit and Pension Credit Savings Credit in the new ECO4 scheme.

Benefits That Quality For ECO4 Support

Below is a list of the type of benefits that quality for support from this scheme:

  • Pension Credit
  • Income based Jobseekers Allowance
  • Universal Credit
  • Income Support
  • Income related Employment & Support Allowance
  • Housing Benefit
  • Working Tax Credit
  • Child Tax Credit

Benefits Set To Be Removed

See below for a list of benefits that are no longer compliant in receiving ECO4 support:

  • Disability Living Allowance
  • Carer’s Allowance
  • Personal Independence Payment
  • Severe Disablement Allowance
  • Armed Forces Independence Payment
  • War Pensions Mobility Supplement
  • Attendance Allowance

Change of Measures under Local Authority Flexible Energy

A change in the number of measures to be installed under Local Authority Flexible Energy have also been altered. Previously, it was capped at 25%, but has now been increased to 50%. Local Authority Flexible Energy allows councils to set their own eligibility criteria. 

Energy Performance Certificate (EPC)

There has been mention of additional Energy Performance Certificate (EPC) improvement requirements. Lastly, there has been a removal of boilers from the scheme and now non-condensing boilers only can be upgraded. 

Where a property currently has an Energy Performance Certificate (EPC) band of F or G the grants will need to increase the rating to at least a D rating. Also, if a property has a band of D or E, the grants will have to increase the range to C.

Removal of Boilers (almost all)

Lastly, there has been a removal of boilers from the scheme and now non-condensing boilers only can be upgraded. From the ECO3 scheme, around 134,000 boilers were installed. However, the new ECO4 scheme is reducing down to 5,000 which means fewer homes will qualify for boiler grants. 

Hopefully this post has given you some information on the new ECO4 scheme. If you receive any of the benefits mentioned above that are accepted for this scheme, checking to see if you’re eligible will provide you with great help and support. 

It is advised that you apply sooner rather than later. This is due to some cases taking several months to complete an application.