MB SOLUTIONS GROUP
ECO4 Scheme
The Energy Company Obligation (ECO4) scheme is a UK government initiative designed to help households reduce their energy consumption, lower their energy bills and reduce carbon emissions in UK homes. ECO4 is the fourth and final phase of the scheme. It is due to run from 1st April 2022 and continue until 31st March 2026.
What Is The ECO4 Scheme?
Now in its fourth phase, ECO4 aims to support low-income and vulnerable households by providing funding for energy-efficient heating measures. This scheme is part of the government’s broader strategy to meet its carbon reduction targets and ensure that everyone can afford to heat their homes adequately.
The ECO4 scheme focuses on improving the energy efficiency of residential properties through various measures, including the installation of insulation, upgrading heating systems and the installation of renewable technologies. By targeting homes that are most in need of these upgrades, the scheme ensures that the benefits of energy efficiency are felt by those who would otherwise struggle to afford such improvements. This not only helps to lower energy bills but also contributes to reducing carbon emissions across the country.
In summary, the ECO4 scheme is a crucial part of the UK’s efforts to combat climate change and alleviate fuel poverty. By offering financial support for energy-efficient upgrades, the scheme ensures that more households can benefit from a warmer, more comfortable living environment.
Who is Eligible for the ECO4 Scheme?
Eligibility for the ECO4 scheme is primarily focused on low-income and vulnerable households. The scheme is designed to assist those who are most in need of energy-efficient improvements but may lack the financial means to undertake such upgrades themselves.
To qualify for the ECO4 scheme, households generally need to meet certain criteria related to income, benefits, and energy efficiency ratings. Key eligibility factors include:
- Income-Related Benefits: Households receiving specific benefits such as Universal Credit, Child Tax Credit, or Income Support are typically eligible. The full list of qualifying benefits is extensive and aims to cover a broad spectrum of low-income families.
- Vulnerable Households: Those who are particularly vulnerable, such as the elderly, disabled, or individuals with long-term health conditions, may also qualify for the scheme. This ensures that the most vulnerable in society can access the support they need.
- Energy Efficiency Ratings: Homes with poor energy efficiency ratings (typically those with an EPC rating of D, E, F, or G) are prioritised under the scheme. These properties are targeted because they are likely to benefit the most from energy-efficient improvements.
- Local Authority Referrals: In some cases, local authorities can refer households that they identify as being in need of energy efficiency improvements but do not meet the standard criteria. This flexibility ensures that the scheme can reach a broader range of households.
By focusing on these eligibility criteria, the ECO4 scheme ensures that support is directed to those who need it most, helping to reduce energy bills and improve living conditions for some of the UK’s most vulnerable households.
Potential Benefits of the ECO4 Scheme
The ECO4 scheme offers numerous benefits, not only to the households that receive support but also to the wider community and the environment.
- Reduced Energy Bills: One of the most immediate and tangible benefits of the scheme is the reduction in energy bills for participating households. By installing more efficient heating systems and insulation, homes can retain heat more effectively, leading to significant savings on energy costs.
- Improved Comfort and Health: Energy-efficient homes are warmer and more comfortable, which can have a direct positive impact on residents’ health and well-being. Adequate heating reduces the risk of health issues related to cold and damp conditions, such as respiratory illnesses and hypothermia.
- Environmental Impact: By improving the energy efficiency of homes, the ECO4 scheme contributes to the reduction of carbon emissions. This is a crucial step in the UK’s efforts to combat climate change and move towards a more sustainable future.
- Economic Benefits: The scheme also has wider economic benefits, including job creation in the energy efficiency sector. The demand for skilled workers to install and maintain energy-efficient systems supports employment and stimulates economic growth.
- Social Benefits: On a broader social level, the ECO4 scheme helps to alleviate fuel poverty, ensuring that more households can afford to keep their homes warm. This contributes to greater social equity and supports the overall goal of a fairer society.
Speak To Us Today
Ready to improve your home’s energy efficiency and lower your bills? Contact MB Solutions today to see if you qualify for the ECO4 scheme and start your journey towards a warmer, more sustainable home!
Frequently Asked Questions
Complete our contact form and we’ll be in touch swiftly to discuss your options and assess your suitability for the scheme and the various measures it covers.
The Energy Company Obligation (ECO) is an energy efficient scheme in the UK, created to reduce carbon emissions and improve energy efficiency in homes. ECO4 is the fourth and final phase of the scheme. It is due to run from 1st April 2022 and continue until 31st March 2026.
- Solid wall insulation
- Cavity wall insulation
- Gas boiler replacement / upgrade
- Loft insulation
- Room in roof insulation
- First time central heating
- Electric storage heater upgrade
- Air source heat pump
- Solar PV
If you receive any of the following benefits, you may be eligible for a home improvement grant under the scheme:
- Income-based Jobseeker’s Allowance
- Income-related Employment & Support Allowance
- Income Support
- Pension Credit Guarantee Credit
- Pension Credit Savings Credit
- Working Tax Credit
- Child Tax Credit
- Universal Credit
- Housing Benefit
If you don’t claim any of the benefits above you could also qualify for funding through your council’s ECO4 Flex rules. These rules allow households to apply if they don’t claim benefits and they earn under £31,000 per year, have a health condition made worse by living in a cold home or are vulnerable to the effects of living in a cold home.
Additional qualifying criteria relating to the property and its main heating type may apply. See below, or contact us for details.
Rules Regarding Energy Performance:
As well as being in receipt of one of the benefits listed above, eligibility for the ECO4 scheme is dependent on the energy rating of your home. This rating is shown on the Energy Performance Certificate (EPC) for your property.
To qualify under ECO4 your property must have an EPC rating of D, E, F or G (or no EPC). Energy companies can only spend 15% of their funding on Band D properties and because of this applications are only being accepted for properties with an E, F or G rating.
If your property has an EPC rating of A-C you do not qualify, as in order to get this rating your property will already be well insulated and adequately heated.
All existing EPCs can be viewed on the government’s Energy Performance Certificate register.
If you don’t currently have an EPC, we can estimate the rating over the phone when you apply and produce an EPC for you at point of survey.
If you think you may fit the eligibility criteria or know someone who does, you can enquire by filling in the contact form. We will get back to you soon to confirm eligibility.
We may need to:
- Share your information with the Energy Saving Trust in order to check if you are eligible for funding.
- Get in touch with the Department for Work and Pensions (DWP) to confirm that you receive the relevant qualifying benefits