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ECO4
- Government Backed Scheme
WHAT IS ECO4?
ECO4 is the latest release phase, which will run from 2022 – 2026.
ECO stands for the Energy Company Obligation, and it is an ongoing scheme designed by the government that mandates large private energy companies to assist the UK in reaching its emissions reduction targets. This means that energy companies are required to help fund the installation of energy efficient solutions in consumers’ homes, focusing on insulation and heating systems. ECO 4 replaces ECO 3 from April 2022. It continues to focus on lower income households, providing support for improving heating efficiency while also helping to alleviate fuel poverty.
MAJOR CHANGES
One of the MAJOR CHANGES is that energy suppliers’ allowance that they can put towards Local Authority Flexible Energy (LA Flex) schemes are doubled. So, we can expect to see a lot more funding coming through this route.
Another major change is that some of the eligible benefits for ECO 3 are being removed for ECO 4. This means that some consumers who were previously eligible for ECO 3 funding may no longer have access to these funds.
LIST OF THE BENEFITS THAT ARE BEING REMOVED FROM ECO 4:
- Income-Based Jobseekers Allowance (JSA)
- Income Related Employment & Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee Credit
- Working Tax Credit (WTC)
- Child Tax Credits (CTC)
- Universal Credit (UC)
- Housing Benefit
- Pension Credit Savings Credit
FABRIC-FIRST APPROACH
ECO 4 is a FABRIC-FIRST APPROACH, meaning the government would like to focus on insulating the entire home as efficiently as possible prior to installing or upgrading any type of heating system.
Although insulating a home is important, ventilation is equally important to ensure that the home can breathe and that the property will not suffer from condensation or damp issues.
