The ECO3 scheme closed to new applications on 31 March 2022 and has been replaced by ECO4 which started in August 2022 and will continue until 31st March 2026.
Unfortunately, the government have reduced their focus on boiler support with ECO4 and will only support a cap of 5,000 homes with repairs and replacement boilers, in comparison to the 134,000 boilers
installed under ECO3.
* Replacement boilers will only be issued in circumstances where the boiler cannot be repaired.
If you’re looking to upgrade your boiler to a renewable alternative (heat pump or biomass) then you could be eligible for the government’s Boiler Upgrade Scheme, where grants of up to £6,000 are available in support for eligible homes.
For more information on ECO4 and full eligibility criteria please view the government’s Energy Company Obligation report.
For more information on the Boiler Upgrade Scheme and full eligibility criteria please visit the government’s
Boiler Upgrade Scheme website(link opens in a new window).
How can ECO help pensioners with boiler replacement?
The Energy Company Obligation (ECO) scheme is a government initiative backed by the big six energy suppliers with the aim of reducing carbon emissions and tackling fuel poverty. The scheme was launched in April 2013 and obliges the big-six energy suppliers to promote measures which help low-income households reduce their heating costs.
Under the scheme, qualifying households will receive a grant towards the cost of replacing an old and inefficient boiler. The ECO scheme is available to homeowners in England, Wales and Scotland.
How much will pensioners get?
The scheme provides a contribution towards the cost of installing a new energy efficient boiler. In some cases, the full cost of replacement is covered. But most energy companies will ask for a contribution towards installation costs. Any contribution you make should not be more than 20% of the full replacement cost.
This is a price worth paying considering you’ll save around £300 a year off your heating bill – thanks to the energy performance of modern A-rated boilers.
Which pensioners qualify?
The scheme is available to all pensioners in receipt of Pension Guarantee Credit or Working Tax Credit. Pensioners who do not receive either of these benefits may still qualify if they receive one of the other qualifying benefits.
To qualify for an ECO grant, you must also meet the following criteria:
- Own your own home or live in social housing
- In receipt of a qualifying benefit e.g. Pension Guarantee Credit, or
- Are 60+ years old and in receipt of Working Tax Credit
- The boiler you wish to replace must be more than 10-years old
Read our Government Boiler Help Article for a full-list of qualifying benefits.
Is the ECO boiler grant 100% free?
The grant is free which means there’s nothing to pay back, what’s more since the initial scheme launched back in 2013 it’s helped over 1.8 million homes to install energy saving technologies – resulting in reduced energy bills for many, by hundreds of pounds per year.
Conclusion
By taking advantage of the scheme, pensioners can update their old boiler to a more efficient one. This should reduce ongoing heating costs, saving hundreds of pounds each year.
You can find out more about the ECO scheme and check if you qualify on the Ofgem (opens in a new window) website.
Useful links
For more helpful information please follow the links below, they include official government consultation outcomes (Q&As) and the history of the ECO scheme.
Energy Company Obligation Consultation Outcome (GOV UK)
(open in a new window)
Ofgem ECO microsite
(open in a new window)
