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ECO4 Grant

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What's In This Guide

What is the ECO4 grant?

The Energy Company Obligation (ECO) is a government-backed scheme, which requires large energy companies to support income-restricted households. The grant enables free energy-saving measures and heating improvements to be installed for eligible customers. The result is warmer homes and lower energy use.

ECO4, which launched in July 2022, is the latest version of this scheme and will be replaced with the ECO+ grant in 2024.

Why does the UK have an ECO grant scheme?

The UK has some of the least energy-efficient homes in Europe. In 2020, for example, UK homes lost an average of 3°C of heat after five hours, compared to 1°C in Germany. Why is this? Well, one reason is that the UK has a larger number of older properties used as homes.

Homes with poor energy efficiency are bad for everyone. For the people living there, the home will be colder for longer in winter. This also means bigger energy bills during a cost of living crisis. In England, 13% were classed as ‘fuel-poor’, which makes any increase in energy bills even harder.

We also can’t ignore the environmental impact. Even if we heat our homes with 100% renewable energy, much of that energy will go to waste without proper insulation. For example, the correct loft and wall cavity insulations could save a huge two tonnes of carbon dioxide emissions every year. In short, the UK will struggle to meet its environmental targets until the majority of our homes become energy efficient.

What does the ECO4 grant cover?

The ECO4 grant covers a range of measures that improve the energy efficiency of a home. This includes installing:

  • Cavity wall insulation

  • First-time central heating

  • Heating controls

  • Loft insulation

  • Replacement boilers

  • Roof insulation

  • Solar Thermal and Solar PV

  • Solid wall insulation (either internal or external)

  • Other energy-efficiency measures

Put simply, the grant can cover all the major energy improvements the home needs.

How much is the ECO4 grant worth?

The grant amount depends on a range of factors, such as the property in question and the number of people living there. However, the grant can be worth up to £40,000, which includes the equipment, materials and labour involved.

Does my property qualify for ECO4 funding?

Most properties available to buy or rent need an Energy Performance Certificate (EPC). The rating scheme measures the energy efficiency of a property, with the highest rating being A and G denoting the lowest. The higher the energy efficiency the higher the rating.

Why might a property have a low rating? There are several reasons, and many of these can be improved upon. For instance:

  • Poor insulation levels

  • Low window quality

  • High energy heating

  • The size of the property

Properties with ratings D-G can potentially qualify for the ECO4 grant — though this also depends on the circumstances of the people living there.

Who qualifies for ECO4 funding?

ECO4 funding is for people in income-restricted households, but there is a specific criteria to be aware of.

If you claim certain benefits and are either a homeowner or private tenant then you are likely to be eligible. A DWP check will be made and you might need to provide extra information (such as your household income).

Eligible benefits include:

  • Income-based Job Seekers Allowance

  • Income-related Employment and Support Allowance

  • Income Support

  • Pension Credit Guarantee Credit

  • Working Tax Credit

  • Child Tax Credit

  • Universal Credit

  • Housing Benefit

  • Pension Credit

  • Savings Credit

  • Child Benefit

If you are a landlord with a tenant who claims benefits, please encourage them to apply for the grant. Your property will benefit from the energy efficiency improvements.

What if you don’t receive benefits?

Even if you don’t receive any benefits, you might still be eligible through the flexible eligibility (LAFlex) program. Contact your local council to see if they participate in the scheme.

Who gets the money?

For successful applicants, the grant is paid directly to the installer. They will then carry out the required work.

What if your ECO4 application is not successful?

If your application is unsuccessful, you may still be eligible for other home energy improvement funding. You can find out by completing this eligibility form.

What are the benefits of an ECO4 grant?

The ECO4 scheme has many benefits for eligible customers, including:

  • Reducing your energy bills

  • Improving the value of your property

  • Making your home warmer

  • Reducing your carbon footprint.

The grant can make a big difference for people who might be unable to afford these house energy efficiency improvements.

How can I apply for the ECO4 grant?

Now you hopeful have more of an idea of whether or not you’re eligible for the ECO4 grant. And if you’re ready to apply, the process couldn’t be simpler — all you need to do is fill out this eligibility form.

If you are eligible, you’ll be notified about the next steps. 

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