Emergency?
Gov’s ECO Boiler Grant Scheme
Cold House? Old Broken Boiler?
In the UK, the government’s Energy Company Obligation (ECO) scheme offers a chance to get a grant for replacing old or inefficient boilers. This initiative, known as the free boiler scheme, was introduced in January 2013. Its goal is to lower the UK’s energy usage and to provide grants to low-income households to enhance their homes’ energy efficiency.
The ECO scheme, part of the Energy Company Obligation and the Electricity and Gas Order of 2012, is set to continue until 2022. It is mainly financed by the UK’s major utility companies. The scheme includes the Home Heating Cost Reduction Obligation (HHCRO), which focuses on offering free boilers and insulation grants to private homeowners who meet specific means-tested criteria. The HHCRO’s objective is to alleviate fuel poverty in low-income households by ensuring efficient heat generation and minimizing heat loss.
Energy suppliers, especially medium and large ones, are obliged under the HHCRO to promote measures that help low-income, fuel-poor, and vulnerable households heat their homes more effectively. This includes implementing actions that reduce energy consumption, such as fitting insulation or upgrading heating systems. The targets for these actions are distributed among suppliers based on their market share in domestic gas and electricity.
The ECO scheme aids in improving energy efficiency in homes considered to be in fuel poverty. Homeowners or tenants interested in the scheme can find more information through designated links.
Under the ECO, qualifying individuals (those receiving specific benefits and owning a boiler older than 10 years) may be eligible for grant funding for a new A-rated boiler. These grants, funded by UK energy companies, do not require repayment.
To qualify, there are additional criteria. The combined income of all working-age residents in a household must not exceed a set maximum amount. The property must be large enough to generate significant savings from the installation of such measures. Unfortunately, the carbon savings from replacing a boiler in a flat are often not substantial enough to justify the required funding. Additionally, there must be an existing low-efficiency boiler in the property, as most modern boilers operate at about 90% efficiency, compared to older models’ 65-80% efficiency.
Recently, funding for the free boiler scheme has decreased due to an agreement for utility companies to reduce their customers’ fuel bills. This has made it challenging to find installers with available funding, especially as many large utility companies have met their targets. However, it is still possible to receive a free boiler grant, and assistance is available for finding approved installers for a survey.
Eligibility for a free boiler grant depends on several factors. A permanent resident in the property must be receiving one of the following benefits:
- Child tax credit
- Child benefit (with a qualifying household income)
- Working tax credit
- Disability Living Allowance
- Pension credit
- Job seekers allowance
- Universal credit
- Employment and support allowance
To qualify for a boiler grant, the following conditions must be met:
- The recipient receives a qualifying benefit.
- The existing boiler is over 10 years old and not a condensing boiler.
- The home is heated by mains gas.
- The applicant is a homeowner.
If these conditions are met, one may qualify for grant funding towards a new boiler.
The following will automatically qualify for a replacement boiler:
- Pension Guarantee Credit
- Income Support
- Income Related Employment and support Allowance
- Income Based Jobseeker’s Allowance
- Child Tax Credit (with annual income below the threshold – see table below)
Full details of eligibility are here: https://www.gov.uk/energy-company-obligation
Details of the scheme and which energy companies are participating can be found on Ofgem’s website:
https://www.ofgem.gov.uk/environmental-and-social-schemes/energy-company-obligation-eco
Energy suppliers on the Energy Company Obligation (ECO) scheme
https://www.ofgem.gov.uk/environmental-and-social-schemes/energy-company-obligation-eco/contacts-guidance-and-resources/eco-supplier-contact-details
If you would like to discuss a new boiler and how to take advatnage of the scheme get in touch!
Call us to discuss the ECO scheme and replacing your gas boiler
