How Can an ECO4 Grant Improve Energy Efficiency?

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Updated: Jan 10

Colourful terrace houses

The Energy Company Obligation (ECO4) scheme provides grants to vulnerable households to help make more energy-efficient houses. Grants under the ECO4 scheme can provide funding for storage heaters, loft insulation and cavity wall insulation amongst other measures. Rising energy costs have meant that energy efficiency is crucial to ensure that savings are made in heating a house. In addition to reducing energy costs, this scheme also reduces carbon emissions by creating more energy-efficient homes.

The previous scheme providing grants to make homes more energy-efficient was called ECO3. There have been some changes since ECO4 was introduced so if you are in receipt of government benefits it can be worth checking your eligibility. Income-based Jobseekers Allowance, Universal Credit and Housing Benefit are included in the ECO4 qualifying benefits. There are also options to apply where some local authorities have introduced flexible criteria to provide grants to low-income households not covered by the core criteria.

Read more for some information on how ECO4 grants can make houses more energy-efficient.

Qualifying Benefits

Qualifying benefits for the ECO4 scheme include Universal Credit, Working Tax Credit, Pension Credit Guarantee Credit, Warm Home Discount Scheme Rebate, Income Related Employment & Support Allowance, Housing Benefit and Pension Savings Credit. Child Tax Credits are also a qualifying benefit subject to an income threshold. If you are a landlord and your tenant and property meet the criteria then they may be eligible to apply. If you are unsure whether you qualify, our online form is a useful tool to quickly check your eligibility.

What Is Covered By An ECO4 Grant?

From April 2022 ECO4 has provided grants based on these new criteria. Some of the most significant changes to a property funded by a grant can include loft insulation grants, cavity wall insulation grants and grants for the installation of electric storage heaters. Loft insulation prevents significant amounts of heat from being lost through the roof. Cavity wall insulation provides an insulating layer in the cavity wall. Storage heaters draw on energy during off-peak hours and then store this energy to heat the property.

Flexible Eligibility

Flexible eligibility, known as Local Authority Flex funding (LA Flex), refers to an aspect of the scheme that some councils participate in. If your home is energy inefficient and you are not on benefits then you may be eligible for the scheme under this program. Councils can widen the criteria for eligibility to receive ECO4 funding. This can allow councils to provide funding to communities they feel can benefit from the scheme where they are not covered by the core eligibility criteria.

Check Eligibility

To find out whether you’re eligible for a loft insulation grant, cavity wall grant or electric heating grant under the new scheme, fill out our online form which takes just a couple of minutes. Alternatively, to discuss your eligibility with one of our team at UK Energy Management (NE) Ltd over the phone, give us a call on 0191 466 1185.

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