Who Qualifies for A Boiler Grant? (ECO4 Boiler Grants)

Given the rising cost of living, many households are struggling to get by at the moment.

As a result, the idea of fitting a new boiler right now may seem hard to grasp. 

However, perhaps yours is in need of replacing and there are no two ways about it or maybe you have enough cash to spare to have a new one installed.

Whatever the case, boiler grants can help keep the costs down.

But who qualifies for such grants? And what types of boiler grants exist?

Here we answer all there is to know...

Boiler Grant Eligibility Criteria

Energy Company Obligation (ECO)4 Scheme

There are two primary boiler schemes active in the UK. The first is ECO4.

As you might guess, this is the fourth in a series of boiler grants from the UK government with this latest scheme set to cover 2022 to 2026.

The scheme’s primary goals are:

• Improve the energy efficiency of UK homes
  
  
• Reduce fuel poverty
  
  
• Make energy more affordable
  
  

But what does the ECO4 scheme offer exactly?

The ECO4 aims to upgrade the energy efficiency of nearly half a million UK homes.

As for the requirements, you must be receiving a government benefit in order to be applicable for the ECO4 scheme. These are as follows:

• Income-based jobseekers allowance or JSA
  
  
• Income Related Employment & Support Allowance (ESA)
  
  
• Income Support (IS)
  
  
• Pension Credit Guarantee
  
  
• Working Tax Credit (WTC)
  
  
• Child Tax Credits (CTC)
  
  
• Universal Credit (UC)
  
  
• Housing Benefit*
  
  
• Pension Credit Savings^

*The Housing Benefit is a new government benefit which can make people eligible for the ECO4 scheme.

^Likewise, the Pension Credit Savings benefit is a new benefit designed as a way to become eligible for the ECO4 scheme.

Please be aware that the requirements for the ECO4 scheme (e.g. what exact benefits are part of the eligibility list) may change over time.

Even if you don’t meet the requirements discussed above, you may still qualify as part of the Local Authority Eligibility Flexibility.

This programme, also known as LA FLEX, can help homeowners who are not in receipt of government support but are nonetheless finding it hard to make ends meet or are otherwise on a tight budget. We’ll discuss this in a little more detail later.

Getting back to ECO4 itself, whether or not your application will succeed would depend on your EPC rating.

Your EPC rating or Energy Performance Certificate evaluates your household’s energy needs and average costs and discusses how your energy use could be lowered.

In order to be eligible for the ECO4 scheme, your property must have an EPC grade of D, E, F, or G.

Related reading: 

• What is a low loss header? 
• Worcester boiler error codes. 
• How to turn off the water supply to the boiler. 
• Ideal F1 error code. 
• Vaillant F4 error code. 
• Boiler smelling of gas? 

Boiler Upgrade Scheme (BUS)

If you do not qualify for the ECO4 scheme, you have a good chance of being eligible for the Boiler Upgrade Scheme (BUS).

The BUS holds the purpose of helping to decarbonise both homes and non-domestic buildings in England and Wales.

If successful, it would actually be the installer who receives the capital grant as a discount on an installation.

But, of course, this would mean you’d pay less and benefit from the grant because the installer could offset your payment by the same amount they receive via the BUS.

Working with property owners, installers can submit applications for the following:

• £5,000 reduction on the labour and supply costs of fitting an air source heat pump
  
  
• £5,000 reduction on the labour and supply costs of fitting a biomass boiler
  
  
• £6,000 reduction on the labour and supply costs of fitting a ground source heat pump (which includes water source heat pumps)

In total, the government has set aside £450 million of BUS funding for 2022 to 2025.

Touching more on eligibility, again, you must live in England or Wales.

Beyond that, you need to own your property, thus, unfortunately, if you rent, you are not eligible for the BUS.

However, private landlords and second-home owners are also eligible. If you are a tenant, you may want to propose a BUS upgrade for the property with the support of your landlord if suitable.

You should also note that you can still submit an application for the BUS even if you are receiving separate energy efficiency upgrade funding (e.g., for doors, windows, insulation etc.).

Lastly, the installation capacity cannot exceed 45kWh.

You must also have a current EPC and no outstanding recommendations regarding cavity wall or loft insulation.

LA FLEX Scheme

We touched on this scheme earlier which could help you get on the ECO4 scheme even if you do not meet the primary eligibility requirements.

Again, the flexible eligibility is designed to support those who do not meet the initial ECO4 qualification requirements but are on a tight budget all the same.

In order to be eligible, a household in private tenure must either deal with a low income or fuel poverty situation and need to be especially vulnerable to the consequences of living in the cold.

It’s also possible that a home which is not fuel-poor will be eligible in the case of a solid wall insulation project.

This would be so if the area of the household concerned for the solid wall insulation is affected by fuel poverty or living in the cold.

Here are the primary requirements for LA FLEX eligibility:

• Your household income comes to £30,000 or less
  
  
• You live in fuel with fuel poverty (i.e., your household spends 10% of its net income or more on heating)
  
  
• You meet other household and net earnings requirements (e.g., those with specific disabilities or low-income households)

Defunct Grants & Schemes 

Unfortunately, quite a few grants that people search for are no longer active.

These include but are not limited to:

• The Boiler Scrappage Scheme
  
  
• ECO3 Scheme
  
  
• Green Homes Grant

Boilers on Finance?

If you do not qualify for a boiler grant, the good news is that you can also look into the option of purchasing a boiler on finance (i.e., buy now, pay later).

In some cases, these plans even come with 0% interest.

While a credit check is usually required, even those with bad or no credit tend to qualify.

Generally, as long as a homeowner does not have any recent IVAs or CCJs covering the past five years or so, they will qualify.

Usually, you can repay the cost of purchasing and installing a boiler over a one-year or two-year timeframe.

However, in some cases, it’s even possible to do so over a five or even ten-year period!

The longer your repayment time frame, the less you’d need to worry about your repayment bills in the short term. 

The overall cost of purchasing a boiler and having it installed tends to fall between £1,750 and £3,800.

Here are some examples of how the cost of purchasing a boiler on finance might work out, based on several examples:

 

As you can see, the monthly repayments of any given boiler on a finance deal can vary quite a bit.

After all, there are several key factors to consider, as listed above. So, make sure to carefully consider each of these factors if you are availing of this option.

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Heat happy.