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Energy Company Obligation 4 (ECO4)

ECO4 is a scheme funded by energy suppliers to upgrade a property’s energy efficiency to drive down consumption. Properties can be either owner-occupied or social housing depending on the EPC rating of the dwelling. Occupants apply for funding from their local authority and provide proof of eligibility and in return will receive a letter of intent that confirms the property is viable for funding. The homeowner can then approach a suitably qualified contractor that has been onboarded with the local authority to carry out approved works. This scheme is completely funded by 3rd parties and the homeowner bears no cost for the improvements.

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Receipt of eligible benefits of the Help to Heat Group

You will be eligible for ECO4 if you are living at private domestic premises and are a member of the Help to Heat Group (HTHG). Membership of the HTHG entails receipt of at least one of the following benefits and satisfaction of the relevant income requirements:

1) Income based Jobseekers Allowance (JSA),

2) Income related Employment and Support Allowance (ESA),

3) Income Support (IS),

4) Pension Credit Guarantee Credit (PCGC),

5) Working Tax Credit (WTC),

6) Child Tax Credit (CTC),

7) Universal Credit (UC),

8) Housing Benefit,

9) Pension Credit Savings Credit (PCSC),

10) Child Benefit, (within the income caps)

Additionally, a person living at private domestic premises is an eligible member of the HTHG if the person is in receipt of the Core Group 1 and Core Group 2 rebate in England and Wales, or the Core Group in Scotland, for each respective scheme year under the Warm Home Discount scheme.

Households with disabilities would be eligible only where they are in receipt of a means tested benefit or found eligible under one of the four routes outlined in the eligibility mechanism ‘ECO4 Flex’.

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Living in social housing with poor energy efficiency

Measures under ECO4 can be delivered to social housing with an EPC energy efficiency rating of D, E, F, and G, where the premises are let below the market rate.

Delivery of measures to SAP band E-G rated social housing premises is limited to the following measures:

a) Insulation measures

b) First time central heating

c) Renewable heating except where it replaces a renewable heating measure of the same kind at the domestic premises

d) District heating connection

e) Innovation measures (IMs).

Delivery to EPC band D rated social housing is limited to IMs and insulation measures installed to meet the Minimum Insulation Requirements only. Band D social housing are also required to meet the Minimum Requirements; however, they are not eligible to receive other measures.

Eligibility under ECO4 Flex

Under ECO4 Flex, local authorities (LAs), the Scottish and Welsh Governments, and suppliers can identify households that meet certain legislated eligibility requirements. LAs will use the four routes listed under ECO4 Flex to identify eligible households. The LA will contact you should you meet the eligible criteria and can refer you for the scheme.

Households may also wish to contact their LA for more information, or to find out if you meet the eligible criteria.

Note that meeting the eligibility for an ECO4 measure will not guarantee that it will be installed. It is up to the energy companies to determine which retrofit projects they choose to fund, the level of funding they provide and the Retrofit Coordinator and installers they choose to work with. This scheme is a first come first served basis with limited funding that is released quarterly through ABS (annual bill saving) allocation.

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