The ECO 4 scheme marks the 4th installment of The Energy Company Obligation (ECO), which is a government-backed initiative aimed at enhancing the energy efficiency of homes in the UK while also combatting fuel poverty. The grant runs until March 2026.
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What is Eco-Funding?
The Energy Company Obligation (ECO) was introduced in January 2013 to reduce the UK’s energy consumption and support people living in fuel poverty.
It does this by funding energy efficiency improvements worth around £1.3 billion every year. Parliament passed the Electricity and Gas Energy Company Obligation (ECO) Order 2012 on 4 December 2012 and it is now in effect. The ECO, ECO2 & ECO2t schemes ran until October 2018, supporting the installation of energy efficiency measures in low-income households and areas, and in properties that are harder to treat. It worked alongside the Green Deal to give consumers support and funding for energy efficiency improvements in their homes. The continuing ECO scheme (and formally The Green Deal – now closed) will help reduce carbon emissions from the UK’s domestic building stock, which is an essential part of the UK’s plan to meet its statutory domestic carbon emission reduction targets by 2050. ECO is funded by energy suppliers and you do not need to be a customer for the funding to be applied.
What is the ECO 4 Scheme?
The Government seeks to enable underprivileged individuals to fulfill their home energy needs while aligning with the nation’s goal of achieving net-zero emissions by 2050. The central objective of this grant is to provide aid to low-income households that lack the means to improve their residences and heating systems.
The Government aim to reach more households during this 4th stage.
What does ECO4 cover?
– Insulating homes: Homes with a ‘D’ or lower efficiency rating must insulate their loft, roof, and exterior walls before improving heating systems.
– Repairing Boilers: Aim to repair efficient heating systems rather than replacing them after 3 to 8 years before their 12-year expected lifetime.
– Installing greener heating systems: If not repairable, boilers will be replaced with greener alternatives.
Do I qualify?
The primary goal of the ECO4 initiative by the Government is to provide assistance to the UK’s most energy-inefficient households, with a specific emphasis on households facing economic hardship and vulnerability.
While the main target will be owner-occupied residences, this latest stage of the grant program will also extend its support to ineffective social housing and privately rented properties (subject to landlord approval).
In line with above changes under ECO4, one of the primary methods used to determine eligibility for the ECO4 scheme is to check if the applicant is in receipt of any of the listed benefits:
ECO4 Qualifying Benefits:
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment & Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee
- Credit Working Tax Credit (WTC)
- Child Tax Credits (CTC)
- Universal Credit (UC)
- Housing Benefit
- Pension Credit Savings Credit
The government will also ensure that individuals receiving supplementary Department of Work and Pension (DWP) benefits can access ECO4, irrespective of their enrollment in Universal Credit.
Non-means-tested benefits that were previously accessible through ECO3 but are not provided in ECO4 consist of:
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Severe Disablement Allowance
- Industrial Injuries Disablement Benefit
- War Pensions
- Mobility Supplement
- Constant Attendance Allowance
- Armed Forces Independence Payment
By extending the ECO scheme for an extra four years, the government has the opportunity to assist vulnerable households facing challenges during the current energy crisis. An estimated 8.5 million households could be at risk of slipping into fuel poverty, which would result in difficulties heating and powering their homes.
To verify your eligibility and submit an application for the ECO 4 Grant, please contact Heat Insulation Ltd. Alternatively, you can complete the provided form if you wish to gather additional information about the ECO 4 Grant. We look forward to hearing from you.