Home Heating Cost Reduction Obligation (HHCRO) - Funding
Energy Companies Obligation
ECO provides funding (Grant) under the Home Heating Cost Reduction Obligation (HHCRO) for insulation and heating system upgrades for homeowners on certain benefits.
The Energy Companies Obligation was introduced to help reduce energy consumption in Britain’s homes and to help householders who are living in fuel poverty. It does this by providing funding for the installation of energy efficient home improvements in private properties.
HHCRO funding is provided by the six major energy companies and is paid directly to the accredited installation companies once they have completed the work.
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.
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:
Child Tax Credit
Employment & Support Allowance (ESA) – Income-Related
Job Seekers Allowance (JSA) – Income-Based
Pension Credit (Guarantee Element)
Pension Credit (Savings Credit)
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.