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diorama of simple house in a green environment - ECO4 grant scheme

ECO4 Grant Scheme

The Energy Company Obligation (ECO) Scheme is a government energy efficiency scheme that provides funding to low-income, fuel-poor and vulnerable households to heat their homes. The scheme aims to reduce the reliance on fossil fuels, reduce carbon emissions and tackle fuel poverty and obligates energy suppliers to deliver energy efficient measures to homes throughout the UK.

Since its initial launch, the ECO scheme has installed over 3.6 million energy-efficient measures in more than 2.4 million homes across Great Britain. This is according to the government report: Household Energy Efficiency, Great Britain, Quarter 3 (July to September) 2022.

What is ECO4?

The ECO scheme has been active since 2013 and, so far, has completed four iterations: ECO, ECO1, ECO2, and ECO3. The latest iteration, ECO4, launched in 2022 and will run until 31st March 2026.

ECO4 targets the least energy efficient homes in the UK, specifically those that have an Energy Performance Certificate (EPC) of D or lower. Through the scheme, these homes could receive heavily discounted or free home insulation, green heating systems or an upgraded boiler.

The scheme is part of the wider government’s commitment to make all housing stock in the UK more energy efficient by 2035.

Great British Insulation Scheme (ECO+)

The ECO+ Scheme, now rebranded as the Great British Insulation Scheme (GBIS), complements ECO4, with a focus on delivering single insulation measures. For more information, visit the page: Great British Insulation Scheme.

GREAT BRITISH INSULATION SCHEME >
cardboard cut-out of a house on grass - ECO4 grant scheme

What Does ECO4 Cover?

The ECO4 scheme covers a range of energy saving solutions that can be applied to existing homes. These include:

Insulation: The latest ECO4 scheme is centered on a fabric-first approach, meaning that the focus is on improving the building itself before installing new heating systems. This applies to all homes that have an EPC of D or below.

Green Heating Systems: With a focus on green energy, as opposed to traditional coal-fuelled heating systems, the ECO4  scheme encourages homeowners to replace their existing boilers with greener alternatives, such as Heat Pumps.

Repairing Boilers: Where an existing heating system is intact and under its lifespan, the ECO4 scheme encourages homeowners to repair rather than replace it.

What makes ECO4 different from ECO3?

Although there are many similarities between ECO3 and ECO4, the final iteration aims to reach more vulnerable households and areas with high fuel poverty. ECO4 targets those receiving household benefits or those in the low-income bracket, ensuring that all homes have access to affordable energy.

The differences between ECO3 and ECO4 include:

  • Various benefits have been removed from ECO4 that were previously available in ECO3, including (but not limited to) war pension, disability living allowance and carers allowance.
  • Various benefits are now available in ECO4 that were previously not available in ECO3, including housing benefits, income support and pension credit savings.
  • ECO3 grants were awarded based on the lifetime savings of the insulation or heating measure installed. However, ECO4 grants are awarded based on how big the difference is between the energy performance ratings.
  • ECO3 saw almost 134,000 boilers upgraded. In ECO4, the number of available boiler grants has been capped at 5,000.

Am I Eligible for ECO4?

You may be eligible to receive help under the ECO4 scheme if you either live in social housing, or live in private housing and claim one of the following benefits:

  • Child Tax Credit
  • Working Tax Credit
  • Universal Credit
  • Pension Guarantee Credit
  • Pension Savings Credit
  • Income Support
  • income-based Jobseeker’s Allowance (JSA)
  • income-related Employment and Support Allowance (ESA)
  • Child Benefit
  • Housing Benefit

If you own your house, it must have an EPC  rating of D, E, F or G to be eligible.

ECO4 grant scheme eligibility

How Can I Apply For ECO4?

To apply for help under the ECO4 scheme, contact your local council to find out if they’re taking part, or contact an energy supplier directly. You can find contact details of suppliers who are taking part in the scheme on the Ofgem webpage: ECO supplier contact details.

For more information on the ECO4 scheme, click the button below to go to the government webpage.

MORE INFORMATION >

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