ECO – explanation

Energy Company Obligation

The government has introduced a scheme called “ECO” which requires the ‘Big Six’ energy suppliers to help us to reduce our heating bills and improve the energy efficiency of our houses.

Funding is available through ECO for a range of energy saving and efficiency improvements – include loft insulation, cavity wall insulation, solid wall insulation, Air Source Heat Pumps and Electric Room Heaters. 

To give you an idea of how big this scheme is – energy efficiency improvements are funded by around £1.3 billion every year. You don’t have to live in a specific area, and don’t think that this is just for a small minority of people. Over a billion pounds per year is available, and we’ll explain how you can check if you’re eligible.

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What are the criteria?

To be eligible for funding you must receive one of the following qualifying benefits:

  • Pension Guarantee Credit
  • Pension Savings Credit
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • Tax Credits (Child Tax Credits and Working Tax Credits)*
  • Universal Credit*
  • Child benefit*
  • Housing benefit

Child Benefit

If you are receive Child Benefit you could qualify for ECO grants – but it depends on how much you earn. The threshold depends on how many children you have, and whether you are a single claimant or as a couple you have a combined income.

Single Claimant

  • 1 child – less or equal to £19,800 per year
  • 2 children – less or equal to £24,600 per year
  • 3 children – less or equal to £29,400 per year
  • 4 children – less or equal to £34,200 per year

Combined Couple Income

  • 1 child – less or equal to £27,300 per year
  • 2 children – less or equal to £32,100 per year
  • 3 children – less or equal to £36,900 per year
  • 4 children – less or equal to £41,700 per year

* please note – there are conditions around age of children and when these income amounts are measured.

Working Tax Credit or Child Credit

To use tax credits or child credits you need to meet the following:

Single Claimant

  • 0 children – less or equal to £13,200 per year
  • 1 child – less or equal to £17,400 per year
  • 2 children – less or equal to £21,600 per year
  • 3 children – less or equal to £25,800 per year
  • 4 children – less or equal to £30,000 per year

Combined Couple Income

  • 0 children – less or equal to £19,800 per year
  • 1 child – less or equal to £24,000 per year
  • 2 children – less or equal to £28,200 per year
  • 3 children – less or equal to £32,400 per year
  • 4 children – less or equal to £36,600 per year

* please note – there are conditions around age of children and when these income amounts are measured.

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Information sources