The UK Government has announced a new ECO+ scheme which aims to make homes more energy efficient and bring down people’s energy bills by helping them to better insulate their homes.
In response to the energy crisis, ECO+ includes those on the lowest incomes but also those living in the least energy efficient homes in lower council tax bands. This means the scheme will help a wider group of people to insulate their homes than previous versions of the Energy Company Obligation (ECO) scheme.
Working with energy suppliers, the UK Government will start the scheme in April 2023, and it is set to run for three years to March 2026.
The ECO+ scheme is designed to be complementary to the current ECO scheme, which is known as ECO4.
ECO+ is an obligation for larger energy suppliers across Great Britain to give their customers grants for insulation to reduce home heating costs.
The scheme is aimed at low income and vulnerable households, including those in houses with poor energy efficiency, with an energy performance certificate (EPC) rating of D or below and those in low council tax bands.
The UK Government’s proposal outlines that the council tax bands included will be A-D in England, A-E in Scotland and A-C in Wales.
The scheme will also offer the grant to people who haven’t had any other form of funding from the UK Government towards the cost of improving their home’s energy efficiency.
Currently, 46% of homes in the UK have an EPC of C or above. This is up significantly from 13% in 2010, but there’s still a lot of work to do to reduce the amount of carbon emissions produced by heating our homes.
Based on its Clean Growth Strategy, the UK Government’s target is to get all homes to EPC C or above by 2035. For rented homes the target date is 2030.
You can check which council tax band you’re in and check the EPC rating of your home.
ECO+ will focus mainly on installing low-cost insulation. The proposed energy efficiency measures that will be offered under ECO+ for eligible households are:
The UK Government said that you could save around £310 a year on your energy bills if you get measures under the scheme.
Costs and savings for insulation vary depending on where you live. In England, Scotland and Wales, loft insulation costs around £640 in a semi-detached house, and our figures show that it could save you £355 a year. Cavity wall insulation installation costs around £1,000 in a semi-detached house, and it can save you £395 a year.
When you apply for the scheme, you’ll be told the grant amount you’ll get. But you may still have to pay for some of the costs if you decide to go ahead with any measures. Basic insulation like loft insulation will likely cost you very little or nothing at all.
You’ll likely have to apply for the scheme through your energy supplier. Details of how you’ll to do this haven’t been finalised. As this is a grant, you won’t have to pay it back if your home is included in the scheme.
Even though the scheme is due to start in spring 2023, the UK Government plans to work with energy suppliers to see if it could deliver some of the scheme earlier in 2023.