From ECO to ECO4 – Changes you need to Know About

Under The Energy Company Obligation Scheme, popularly known as ECO, energy suppliers have to improve the energy – efficiency of UK homes. In operation since 2013, this Scheme was launched taking into consideration the current fuel poverty crisis along with the Earth’s environmental crisis. The current phase, ECO4, is expected to run till March 2026. According to Government figures, over 3.6 million energy – saving measures have been installed in over 2.4 million homes since the start of this Scheme.

What the Eco4 Grant Offers

A total of £4 billion in funding has been made available within ECO4, which has been running since August 2022. The changes that were made within this Scheme are as follows –

  • Qualifying Benefits – The new list of qualifying benefits includes :-
    • Income Based Jobseekers Allowance
    • Income related Employment and Support Allowance
    • Income Support
    • Pension Credit Guarantee Credit
    • Working Tax Credit
    • Child Tax Credits
    • Universal Credit
    • Housing Benefit ( new )
    • Pension Credit Savings Credit ( new )
  • Non – Qualifying Benefits – The list of benefits no longer eligible includes :-
    • Disability Living Allowance
    • Personal Independence Payment
    • Attendance Allowance
    • Carer’s Allowance
    • Severe Disablement Allowance
    • Industrial Injuries Disablement Benefit
    • War Pensions Mobility Supplement
    • Constant Attendance Allowance
    • Armed Forces Independent Payment
  • Number of Measures to be installed under LA Flex – As opposed to the previous 25 %, energy suppliers can now deliver up to 50 % of their obligation through the LA Flex ( Local Authority Flexible Energy ).
  • Requirements of EPC Improvements – After the installation of a first time central heating or other advancement measures, a minimum improvement in the Energy Performance Certificate is required –
    • EPC of band F or G needs to change to at least D
    • EPC of band D or E needs to change to at least C
    • A minimum number of E, F, G homes to be upgraded
  • Almost All Boilers Removed from the Scheme – Under ECO3, 134,000 boilers were installed. This number is limited to just 5000 under ECO4 with only non – condensing boilers being eligible to be upgraded.

As there is a limit to the amount being spent by the Government on the ECO4 Grant, it is advisable to apply for a grant as soon as possible. The sooner your heating system is up graded, the sooner you will be able to reap the benefits of high efficiency and low cost.

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