A growing number of installers across the UK are offering free home heating upgrades funded by the ECO4 scheme. But what does that mean for UK residents? What exactly is the ECO4 grant? Where does the money come from? And what should you watch out for?
What is the ECO4 Grant?
The ECO4 grant aims to reduce fuel poverty in the UK by providing energy-efficient measures to vulnerable homes. It also aims to reduce the UK’s carbon emissions by helping eligible households switch to renewable energy, households who perhaps couldn’t otherwise afford to make the switch.
The ECO4 grant is targeted at people who are off the mains gas grid and are therefore forced to heat their homes using less environmentally friendly, and often costly, alternatives such as oil, LPG gas, solid fuel, or even electric heaters.
You could say the Government is killing two birds with one stone with this scheme, it is helping people out of fuel poverty, and at the same time it is lowering the country’s carbon footprint.
The ECO4 scheme has been in place since April 2022, and before that there was ECO1, 2 and 3. In total more than 2.4 million people have benefited from the ECO schemes so far. Use our free checker form to see if ECO4 could help you.
Where does the money come from?
Because the home upgrades are completely free to the homeowner, a lot of people are naturally suspicious of it. But, like any other benefit or energy scheme in the UK, it is both genuine and completely free. So, who does pay for it? The major energy companies.
ECO4 is the fourth stage of the Energy Company Obligation (ECO). Through the ECO schemes, the energy companies are obliged to contribute money towards the grant. The grant is also partially funded by the UK Government. (Read in more detail about ECO here.)
In order to access this funding, an installer has to evidence that they have raised the property’s EPC rating (Energy Performance Certificate) and that the property is therefore going to be cheaper to run.
They also have to provide evidence that the property is off the mains gas grid, and that the people in the property meet the relevant criteria (either by earning below a certain amount or by receiving a benefit).
What the ECO4 grant cover?
Before your installation begins, your installer should send a surveyor. This survey will then help the installer decide what solutions are suitable for your property. Every property is different, but usually the solution will include solar panels, loft and wall insulation, a new heating system, new radiators, and smart controls.
The combination recommended by the surveyor will be the most effective way to lower both your energy bills and your carbon footprint. A common misconception is that people with solid walls cannot have wall insulation fitted. This is not true. Depending on the wall, there are a range of solutions which can be provided, which your surveyor and/or installer will discuss with you.
Who qualifies for ECO4?
The ECO4 grant is designed to help low-income households in the UK combat fuel poverty. The latest stats show that 13.4% of all households in England (that’s 3.26 million households) are living in fuel poverty1. In Wales, the percentage living in fuel poverty is similar at 14% (that’s 196,000 households)2, and in Scotland that percentage rises to 24.6% (which is 613,000 households)3.
With this in mind, the Government has stipulated that these poorer households must be prioritised for the ECO4 grant. The way that works in reality is that in order to qualify for the home energy upgrades, you must either be earning below £31,000 (per household) OR you must already be in receipt of a means tested benefit.
If you are a landlord and your tenant claims benefits, you can encourage them to apply for the scheme so your property can benefit from the free upgrades which will be beneficial not only for the current tenants but also for any future tenants. You may also find that when your property is next on the market it is more valuable because it will have a better EPC rating.
The benefits that mean you are eligible for the ECO4 scheme are:
- Income Support
- Pension Credit
- Income related Employment & Support Allowance
- Income based Jobseekers allowance
- Universal Credit
- Housing Benefit
- Tax Credits (Child or Working Tax Credit)
If you are a landlord interested in claiming the ECO4 benefit, the tenant(s) living in your property must meet this criteria.
What are the Child Benefit income requirements?
If Child Benefit is the only benefit you receive, your household will need to be earning less than the amounts below;
| Children | Single Parents | Single Parents |
| 1 Child | £19,900 | £27,500 |
| 2 Children | £24,800 | £32,300 |
| 3 Children | £29,600 | £37,200 |
| 4+ Children | £34,500 | £42,000 |
What is ECO4 Flex?
If no-one in your property is receiving any of the benefits mentioned above, you may still qualify for funding under your council’s ECO4 Flex rules. These rules allow households with an annual income under £31,000 to apply for the grant.
People experiencing health conditions exacerbated by living in a cold home, or vulnerable to the effects of living in a cold home can also apply for the grant under the ECO4 Flex rules. Typically, people with breathing issues such as Asthma are eligible.
What other criteria do I need to meet for ECO4?
Other criteria you will need to meet in order to qualify for the ECO4 grant are:
- Lower EPC rating – as mentioned above, this grant is targeted at those who are in the most dire need of assistance. Those lucky enough to be living in a house with an EPC of a D or above usually already have reduced energy bills and warmer houses. Therefore, these people are currently not eligible. The grant is currently serving people with an EPC rating of E, F, or G. This may rise to a D in the future.
- The property is a house, not a park home or a flat – unfortunately, the home improvements offered through this scheme are not suitable for park homes and flats. Bungalows, detached or semi-detached, and most terraced houses all qualify.
- You are a private tenant, a landlord, or a homeowner – if you are a tenant, your landlord will have to sign off the work first since they own the property, but this is not usually a blocker as most landlords are keen to get the free upgrades for their property. If you live in a council house, you won’t be eligible for this scheme but you might be eligible for alternative upgrades funded by your local council.
If you are still not sure whether you qualify or not, use the checker form at the bottom of this article to find out.
What should I watch out for?
As with any industry, there are experts and there are cowboys. If you are considering ECO4 home upgrades, make sure you do your research on the installer. A good installer, working legitimately under the ECO4 grant will:
- Ask you to provide proof of benefits or income (so they can legitimately claim their payment from the grant)
- Recommend the best solution for your individual property
- Give you training on how to use any new equipment they fit in your house
- Take their rubbish away with them
The Eco schemes have evolved since they first started out. Today, installers are subject to rigorous reporting, and must provide evidence that installations have been done to the highest standards. Some of the accreditations to look out for are PAS2035 and Trustmark.
If you have any doubts, question the installer. Make sure you have contact details for them so you can get back in touch, and research online reviews.
In conclusion, ECO4 is a government initiative that supports low-income households and creates homes that are more energy-efficient. It aims to help people reduce their energy bills and make properties warmer throughout the winter months. If you are eligible, you should consider applying for the scheme, while it is available, so that you are prepared for a greener future ahead.
Check Your ECO4 Eligibility
You can use this form to check if you are eligible for the ECO4 grant. If you are eligible, you will be given the option to apply and we will pass your details onto a local accredited installer approved by Energy Saving Club energy experts.
References
1. “Annual fuel poverty statistics lilee report 2023 2022” (gov.uk website)
2. “Fuel poverty modelled estimates for Wales as of October 2021” (gov.wales website)
3. “Scottish house condition survey: 2019 key findings” (gov.scot website)
I don’t want internal wall insulation, as this is an old thick walled (2.5.feet) stone built 1990’s conversion! But we need new double glazed windows and a PV array on the south facing roof!
Don’t seem to just get ‘these improvements’. We’re oil fired and live in an isolated place on the English/Wales boarder….plus old age!
Who will consider using the ECO4 grant just for these items?
We don’t want or need heat exchangers and we’re well insulated!