Lowering the UKs Energy Bills by
Delivering ECO4 Initiatives
Nationwide
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The Energy Company Obligation (ECO4) is a government energy-efficiency scheme in Great Britain, designed to tackle fuel poverty and help reduce carbon emissions. ECO is an obligation placed on energy companies to deliver energy efficiency measures to domestic premises. Unlike previous ECO schemes the new ECO 4 grant is intended to be accessible to a wider range of people and more fuel impoverished homes. This next phase offers improved energy efficiency measures and scoring methodology to ensure the least energy efficient homes and properties of vulnerable and fuel poor homeowners are reached first and receive greater support. ECO is not a grant scheme; it is up to the energy companies to determine which retrofit projects they choose to fund, the level of funding they provide, and the Retrofit Coordinator and installers that they choose to work with.
In recent years energy companies have been accumulating funds to pay for the initiatives under Eco 4. This money has been funded by you the bill payer. What you may not know is that we have all been paying a green levy on our energy bills of around £220 per household, per year, which energy companies will use to fund the initiatives as part of Eco 4
ECO4 measures were able to be delivered from the 1 April 2022 and will run until 31 March 2026.
ECO4 focuses on improving the least energy efficient homes and households in fuel poverty, as only properties in bands D-G can be treated. It also aims to deliver a more complete upgrade of those homes, shifting to a multi-measure whole-house retrofit approach. Furthermore, a minimum number of private tenure homes in energy efficiency rating band E, F and G must be upgraded throughout ECO4, ensuring the least efficient homes are treated.
ECO has delivered 3.1m insulation, heating, and other measures to over 2.3m households.
ECO is primarily focused on the most vulnerable in our society – delivering an estimated average cost savings of £290 per year for those households.
The total cost savings delivered by ECO3, the previous scheme to Eco 4 is estimated to be worth £8.253b.
The Insulation Assurance Authority (IAA) stated in their most recent report that retrofitted properties have collectively saved £6.2 billion.
Statistics from The National Energy Action Charity show England, Wales, Scotland, and Northern Ireland are on target to hitting fuel poverty targets.
There is a new Minimum Requirement (MR) to improve the energy efficiency rating of band D and E homes to at least a band C and band F and G homes to at least a band D. ECO4 aims to encourage the installation of various energy efficient measures such as insulation measures, first time central heating, renewable heating, and district heating connections and whats more it is all offered at no cost to you, the homeowner or renter.
For more information on SAP band requirements, MRs, and ECO4 measures, please refer to our Draft ECO4 Guidance: Delivery.
Eligible customers receive a package of Free Energy-Saving Measures and Heating Improvements
Helping to keep your home warm & significantly reduce your energy and fuel bills
Householders living in properties that currently have a low EPC rating of D or below can benefit from the scheme
Who's eligible for the ECO Scheme?
Several disability benefits have been eliminated from the new system. Housing Benefit and Pension Credit Savings Credit will be included in the new phase.
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Income Based Jobseekers Allowance (JSA)
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Income Related Employment & Support Allowance (ESA)
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Income Support (IS)
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Pension Credit Guarantee
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Working Tax Credit (WTC)
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Child Tax Credits (CTC)
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Universal Credit (UC)
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Housing Benefit (a new benefit making people eligible for ECO4)
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Pension Credit Savings (another new eligible benefits for ECO4)
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Child Benefit Subject to Criteria*
Not in receipt of benefits, we can still help - LA FLEX Scheme.
The LA Flex Scheme is designed to help those householders who are not in receipt of benefits but who are living on a low income and are vulnerable to the effects of living in a cold home.