ENERGY
COMPANY
OBLIGATION
(ECO4)
ECO4 IS A GOVERNMENT BACKED SCHEME
ECO4 SCHEME
The Energy Company Obligation (ECO) is a government energy efficiency scheme in the UK. Its aim is to help reduce carbon emissions and tackle fuel poverty. ECO4 will be a four-year scheme and is intended to run from 1 April 2022 to 31 March 2026.
Under ECO, medium and larger energy suppliers fund the installation of energy efficiency solutions in UK households. Companies like Warm Front Limited, who are industry approved, install the measures.
This ECO policy will be entirely formed from one obligation, the Home Heating Cost Reduction Obligation (HHCRO). Under HHCRO, obligated suppliers must mainly promote measures which improve the ability of low income, fuel poor and vulnerable households to heat their homes. This includes actions that result in heating savings, such as the installation of insulation or the upgrade of an inefficient heating system. The target is divided between suppliers based on each supplier’s relative share of the domestic gas and electricity market.
The main objective of ECO4 is to improve the least energy efficient housing stock occupied by low income and vulnerable households. One route that can be used to identify these households is ‘ECO4 Flexibility’ (ECO4 Flex). Under ECO4 Flex, a participating Local Authority (LA), can refer private tenure households that it considers to be living in fuel poverty or on a low income and vulnerable to the effects of living in a cold home.
Ofgem are the ECO Scheme administrator. Further information can be found their website below.
So we can ensure you get the best options available, contact us to arrange a free survey. We’ll send one of trained assessors, to take you through the requirements and assess your property.
Home Owners & Private Tenants
Individuals In Receipt of Income Related Benefits
Properties With Inefficient Electric Heating
ECO4 Qualifying Benefits
Benefits which no longer meet the eligibility criteria
- CHILD TAX CREDITS
- CHILD BENEFITS (*SEE THRESHOLD BELOW)
- INCOME BASED JOBSEEKERS ALLOWANCE (JSA)
- INCOME RELATED EMPLOYMENT & SUPPORT ALLOWANCE (ESA)
- INCOME SUPPORT (IS)
- PENSION CREDIT GUARANTEE CREDIT
- UNIVERSAL CREDIT (UC)
- WARM HOME DISCOUNT SCHEME REBATE
- WORKING TAX CREDIT (WTC)
- HOUSING BENEFIT (NEWLY ADDED TO SCHEME)
- PENSION CREDIT SAVING CREDIT (NEWLY ADDED TO SCHEME)
Benefits (mostly disability benefits) no longer included in the energy company obligation ECO 4 criteria after being eligible under ECO3 include:
- ARMED FORCES INDEPENDENCE PAYMENT (AFIP)
- ATTENDANCE ALLOWANCE
- CARER'S ALLOWANCE
- CONSTANT ATTENDANCE ALLOWANCE
- DISABILITY LIVING ALLOWANCE (DLA)
- INDUSTRIAL INJURIES DISABLEMENT BENEFIT (IIDB)
- PERSONAL INDEPENDENCE PAYMENT (PIP)
- SEVERE DISABLEMENT ALLOWANCE
- WAR PENSIONS MOBILITY SUPPLEMENT (WPMS)
*Child Benefit income threshold to qualify for ECO4 funding
| Number of children | Single claimant | Member of a couple |
| 1 | £19,900 | £27,500 |
| 2 | £24,800 | £32,300 |
| 3 | £29,600 | £37,200 |
| 4 + | £34,500 | £42,000 |
If you are not in receipt of qualifying benefits but your household income is less than £31,000 per year then you may qualify for LA-FLEX funding (Local Authority ECO4 Flex). Click HERE for more information.
