The ECO3 scheme closed to new applications on 31 March 2022 and has been replaced by ECO4 which started in August 2022 and will continue until 31st March 2026.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).
What is the ECO Scheme?
The Energy Company Obligations (ECO) scheme was set up by the government in 2013 to help low-income households lower their heating costs by improving the energy efficiency of their homes.
The ECO Scheme provides funding towards several carbon reduction initiatives including improving insulation, but most importantly it can be used to offset the cost of a new boiler. The eligibility criteria (which has been extended in ECO3) will allow for larger coverage meaning more homes can benefit from the scheme.
The latest version of the ECO grant scheme aptly named ECO3 launched in December 2018 and will run until March 2022 and is packed with lots of new ways in which you can receive a grant-funded boiler.
The ECO Scheme consists of one primary obligation the Home Heating Cost Reduction Obligation (HHCRO). Under this obligation energy suppliers (who have 150,000 or more customers) must promote energy saving home improvements that will help you to save on energy bills.
The scheme covers funding for the following energy saving home improvements:
- Cavity wall insulation
- Loft insulation
- Boiler replacement/repair – or upgrades to your heating (new heating controls etc…)
Who qualifies for a boiler grant?
The scheme is targeted at low-income families, pensioners and single parents. To qualify, households need to receive one of the main benefits listed below.
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Benefit
- Constant Attendance Allowance
- Disability Living Allowance
- Pension Guarantee Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Industrial Injuries Disablement Benefit
- Mobility Supplement
- Personal Independence Payment
- Severe Disablement Allowance
- Tax Credits (Child Tax Credits and Working Tax Credits)
- Universal Credit
Alternatively if you live in a home with an energy rating of E, F or G, then you may also be eligible for the scheme. You can find this on your home’s energy performance certificate (EPC).
As part of the scheme UK energy companies will pay for these energy saving home improvements to be made, but only to households that qualify.
Should you be eligible then you could claim funding to replace your old inefficient boiler with a shiny brand new A-rated version, helping you to significantly reduce your energy bills.
I’m in receipt of a qualifying benefit, can I claim for a boiler grant?
In short, yes… but with one caveat, that eligibility doesn’t guarantee that an energy supplier or installer will agree to install energy saving measures in your home.
Should you have any questions or you’d like to apply for a grant then you should contact any of the obligated energy suppliers listed on the Ofgem website(opens in a new window).
I’m a pensioner can I claim for a boiler grant?
Yes, but you must be in receipt of Pension Guarantee Credit (not to be confused with the Standard State Pension) or another qualifying benefit e.g. Working Tax Credit; this will allow you to make a claim for a free or highly subsidised replacement boiler.
To claim the boiler grant you must:
- 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
I’m in receipt of a disability benefit can I get boiler help?
Yes, the government has extended its qualifying criteria to include homes that claim disability benefits (see list above).
Is social housing covered in the scheme?
Help will be available to those living in social housing with an EPC Band rating of E,F or G, the government has also extended measures delivered under innovation to residents in social housing properties with an EPC Band rating of D,E,F and G.
For more information on the types ‘Innovative measures’ covered in ECO3 then please visit the Ofgem website (opens in a new window).
Is ECO nationwide?
The ECO scheme is available to homes in England, Wales and Scotland.
Does ECO cover all boiler types and off-grid homes?
The scheme mainly focuses on gas boilers, however, the government has included a 15% rural sub-obligation (15% of the total obligation) for energy suppliers. This means off-grid homes that use oil heating can apply for help should their boiler be broken and need replacing (within the 35,000 heating measure cap) – should your oil boiler need repairing then there’s a 5% cap allowance (allocated from all boiler repairs).
The scheme will also work alongside RHI (Renewable Heat Incentive) supporting the installation of ground source heat pumps.
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.
For more information on the ECO scheme please visit the Ofgem website (opens in a new window).
Conclusion
Obtaining a grant for a new boiler can save thousands of pounds on boiler replacement costs. Not only that, but you will also benefit from lower energy bills and better energy efficiency.
So if your current boiler is more than 10 years old and you meet the above criteria you should look at replacing your old boiler for a new one and try reaching out to energy suppliers for more information.
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)
Boiler Help For Pensioners
How the government's ECO scheme can help pensioners with boiler replacement.
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