This post was updated on the 23/03/2023.

The Green homes grant scheme has now ended. You may find an alternative funding source by accessing various grants and schemes made available by the government or other awarding bodies within our grants section.

Even though the green deal programme is no longer valid, there are other ways to qualify for government funding for home improvements. 

The Green Homes Grant Application is no longer accepting any more applications. A Green Energy Grant would assist you in making energy-saving home improvements. Insulation, like a solid wall, cavity wall, and loft insulation, is a typical energy-saving improvement that may apply to your home. The Green Homes Grant 2020 did not receive as much attention from the public as the government had hoped; this led to the scheme being closed.

Which government grants are available apart from the Green Deal Scheme?

ECO4: ECO4 is the 4th phase of The Energy Company Obligation (ECO), a government-funded programme that improves the energy efficiency of homes in the UK and combats fuel poverty. Since 2013, over 3.1 million home improvements have been completed as part of the programme.

What is ECO4 funding?

ECO4 represents the fourth phase of the Energy Company Obligation (ECO) programme. As part of its Sustainable Warmth Strategy, the federal government has extended the ECO grant by four years, extending its duration to March 2026. This grant’s primary objective is to assist low-income households unable to upgrade their homes’ heating systems. The government will be able to help vulnerable individuals power their homes while also contributing to the nation’s goal of reaching net zero by 2050.

What distinguishes ECO4 from ECO3 and the Green Deal Scheme?

Although phases three and four of the ECO programme share many similarities, the government hopes to reach more people during this final phase. Under ECO3, energy providers with over 150,000 customers were required to support qualified applicants. Although this is the case for ECO4, the government hopes to eliminate obligation thresholds by instituting a “buy-out mechanism.” This means that smaller businesses will be able to participate in the scheme. The government has also altered the eligibility requirements for ECO4 to assist low-income families not receiving benefits.

According to the ECO4 report, 46.1% of fuel-poor households do not receive benefits. The government will “expand and reform local authority flexibility so suppliers can fulfill up to 50% of their obligation to support these low-income groups.” Simultaneously, the government eliminates certain ECO3-related benefits “to target households with low incomes better.” The following non-means-tested benefits were previously available under ECO3 but are no longer available under ECO4:

  • Income based job seekers allowance
  • Income related employment and support allowance
  • Income support
  • Pension credit guarantee credit
  • Working tax credit
  • Child tax credit
  • Universal Credit
  • Housing benefit
  • Pension credit savings credit
  • Child benefit (with dependencies)

What is the LA Flex Scheme?

The government provides grant funding for energy efficient upgrades through the Energy Company Obligation (ECO4) scheme. The LA Flex scheme is one of the opportunities available to homeowners, tenants, and landlords through ECO4.

To be eligible for the LA Flex fund, you must satisfy one or more of the following requirements:

  • Low-income: If the Household income is less than £31,000 before tax you will qualify through route 1 of the LA Flex scheme.
  • Certain conditions that are impacted by the cold: Those with respiratory disease, cardiovascular disease, neurobiological disease, cancer, limited mobility, or autoimmune and immunological diseases will qualify via route 3 of the LA Flex scheme. 

What is the scope of ECO4?

Depending on which energy provider you choose, you could receive a variety of home improvements. Look at the following critical areas of interest to get an idea of the type of assistance you can obtain with the ECO4 grants.

Insulating homes

The ECO4 programme takes a fabric-first approach, prioritizing the improvement of the building’s structure over installing new heating systems. Any residence with an energy efficiency rating of ‘D’ or lower must install loft, roof, and exterior-facing cavity wall insulation before upgrading its heating systems. The government’s ECO4 report indicates a particular interest in solid insulating walls, with an annual target of 22,000 installations.

Check your EPC Rating

Energy Performance Certificates

An Energy Performance Certificate (EPC) tells you how energy-efficient a property is. It would be best if you had an EPC  in England and Wales when you’re:

  • selling a property
  • renting out a property
  • building a new property

You must order an EPC for potential buyers and tenants before you market your property to sell or rent.

In Scotland, it is not compulsory to have an EPC rating though there is talk of legislation changing this in the future.

An EPC contains:

  • information about a property’s energy use and typical energy costs
  • steps to improve a property’s energy efficiency and save money

An EPC gives a property an energy efficiency rating from A (best) to G (worst) and is valid for 10 years.

Repairing boilers

The government claims that no boiler or electric storage heater repairs have been made through the programme to date. People are replacing efficient gas boilers after approximately three to eight years, well before the end of their expected 12-year lifespan. Therefore, ECO4 will encourage the repair of energy-efficient heating systems whenever possible. Broken heating systems that cannot be repaired are replaceable via the Broken Heating Cap, which brings us to our next point.

Putting in place greener heating systems

ECO4 focuses on replacing outdated boilers with eco-friendly alternatives. To ensure that the UK reaches its goal of net zero by 2050, the ECO3 programme excluded coal-fueled heating systems. ECO4 will maintain this rule by adding oil- and LPG-fueled heating systems to the exclusion list.

Instead, the government will encourage individuals to replace their boilers with heat pumps and biomass boilers. Additionally, ECO4 will continue to install solar photovoltaics in all electrically heated homes. But only if a biomass machine or District Heat Network is ruled out.

Who qualifies for ECO4?

The ECO4 programme aims to assist the least energy-efficient homes in the country, with a particular emphasis on low-income and vulnerable households. One of the primary criteria for determining ECO4 eligibility is whether the applicant receives any of the following benefits:

  • Income-based Unemployment Benefit (JSA)
  • Allowance for Employment and Support based on Income (ESA)
  • Income Support (IS)
  • Pension Credit Protection
  • Working Income Tax Credit (WTC)
  • Child Income Tax Credits (CTC)
  • Universal Benefits (UC)
  • Housing Assistance
  • Retirement Savings Credit

In addition, the government should ensure that all recipients of additional Department of Work and Pensions benefits have access to ECO4, regardless of whether they receive Universal Credit. This new grant phase will support inadequate social and privately rented housing and owner-occupied homes, which will be the primary focus (if the landlord permits).