ECO4, Local Authority Flexabilty and Great British Insulation Scheme - Funding
Energy Companies Obligation
Core Eligibility FAQ Section
Q: What is ECO4 funding? A: ECO4 is a government scheme that helps eligible households in the UK improve their home’s energy efficiency at little to no cost. The scheme focuses on supporting those in fuel poverty and lower-income households to reduce their energy bills and carbon footprint.
Q: Who can qualify for ECO4 funding? A: You may qualify if you:
- Live in a property within council tax bands A-E
- Receive qualifying benefits (see benefits section below)
- Own your home or have permission from your landlord
- Have a property that needs energy efficiency improvements
Benefits-Related Qualification
Q: Which benefits make me eligible for ECO4? A: You may qualify if you receive any of the following:
- Universal Credit
- Pension Credit
- Child Tax Credit
- Working Tax Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Housing Benefit
- Child Benefit (subject to income thresholds)
Property Requirements
Q: What types of properties qualify? A: Properties that:
- Have an Energy Performance Certificate (EPC) rating of D, E, F, or G
- Need eligible improvements such as insulation or heating system upgrades
- Are private residential properties (owned or rented)
Q: What improvements are available? A: Based on our service offerings, eligible improvements include:
- Gas boiler installations
- Air source heat pump installations
- Various insulation types (loft, cavity wall, underfloor)
- Smart heating controls
- Solar PV technology
Cost Savings and Environmental Impact
Q: How much could I save? A: Savings vary depending on your current energy usage and the improvements installed. For example:
- Upgrading an old boiler can reduce heating bills by up to 55%
- Proper insulation can significantly reduce the 22% of carbon emissions that UK homes contribute
- Combined measures could save hundreds of pounds annually on energy bills
Fuel Poverty
Fuel poverty is defined by the Government as existing when more than 10% of household income is required to be spent on energy in order to achieve reasonable levels of warmth in the home.
In this instance, adequate warmth means a temperature of around 22º centigrade in the main living areas of a home and 18º centigrade in all other areas. The main factors which contribute to fuel poverty are low household income, energy efficiency of the heating system, poor insulation in the home and the cost of fuel.
HHCRO was introduced to help tackle fuel poverty and the 18 month transitional phase starting on 1st April 2017 is intended to be even more focused on fuel poverty than the previous ECO Scheme.
How much funding is available under the Home Heating Cost Reduction Obligation?
Under the first phase of the Energy Companies Obligation (ECO1) energy suppliers provided up to £1.3 billion per year to meet their Carbon Saving Obligation and Affordable Warmth scheme.
Around £325 million was directed to the affordable warmth scheme under which eligible householders in the private sector can apply for heating grants to cover the cost of energy efficient home improvements which reduce their heating bills.
Insulation Grants are also available for cavity wall insulation, loft insulation & underfloor insulation.
ECO Funding was reduced for ECO 2 and ECO2t, an 18 month transitional phase starting on 1st April 2017, had funding cut even further. However, although overall ECO funding has been reduced, that part allocated to the Affordable Warmth Scheme has actually been increased.
Home Heating Cost Reduction Obligation, previously known as the Affordable Warmth Scheme
Home Heating Cost Reduction obligation provides funding from the energy companies to cover the cost of installing certain heating and insulation products, such as a free boiler, into the private properties of low-income households.
HHCRO applies to homeowners who live in poorly heated and insulated homes and who receive certain state benefits. Specifically, HHCRO is targeted at low-income households, Including pensioners and single parents and those on child benefit.
Free HHCRO Scheme Survey
If you live in a private property and receive certain State Benefits we will arrange for a free technical survey of your heating system to establish whether you qualify for the installation of a new ‘A’ rated, energy efficient central heating boiler or insulation measures to help keep your home warm
HHCRO Scheme Qualifying Criteria
1. Your Home
You must be a home owner or private tenant
2. Your State Benefits
You must receive one of the following State Benefits, Tax Credit or Allowances:
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Child Benefit
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Child Tax Credit
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Employment & Support Allowance (ESA) – Income-Related
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Housing Benefit
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Income Support
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Job Seekers Allowance (JSA) – Income-Based
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Pension Credit (Guarantee Element)
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Pension Credit (Savings Credit)
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Universal Credit
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Working Tax Credit
Benefits for the Householder under the HHCRO Scheme
You may get an ‘A’ Rated energy efficient central heating boiler, installed free of charge
The obvious benefit for the householder is that you get a brand new, energy efficient boiler or insulation measures.
A new central heating boiler should not require the same level of maintenance in its early years as your old boiler would have done, so you should also save the cost of any potential repairs to your old boiler. And the new central heating boiler will also come with a new guarantee.
In addition, the new energy efficient central heating boiler should add value to your home and help when you come to sell it.
Lower heating bills
Replacing an old inefficient and faulty ‘G’ rated central heating boiler for a new energy efficient ‘A’ rated central heating boiler can save you up to 35% on your heating bills. Based on a typical three bedroom house, this can be over £300 per year.