Boiler grants scheme extend for two years

15th Jan 2014

Back in December the Government confirmed that it was to extend the Energy Company Obligation (ECO), a scheme where energy companies provide households with efficient boiler replacements to bring down energy bills and meet carbon reduction targets. 

Low income and vulnerable households who qualify for the scheme will benefit from a free boiler grant to supply and install an A-rated energy efficient condensing boiler. To qualify for a boiler grant you have to be in receipt of specific benefits, including pensioners on Pension Credit.

The other benefit criteria are:

  • Working Tax Credit (£15,860 or less annual household income)
  • Child Tax Credit (£15,860 or less annual household income)
  • Income Support
  • Income-based Job Seeker’s Allowance
  • Income-related Employment Support Allowance

For people in receipt of Income Support, Income-based Job Seeker’s Allowance and Income-related Employment Support Allowance, to qualify for a boiler grant extra conditions apply. Qualifying households must also have an existing boiler which meets the scheme’s criteria.

Originally set to end in March 2015, larger energy supplies like the ‘Big Six’ now have until March 2017 (although this period has been extended into 2018, but is now very limited) to fulfill their legal obligations. ECO is funded through levies on consumer energy bills. Extending the scheme will lead to an annual saving of around £35 on the average household bill, the Government has estimated.

Worth around £540 million, ECO helps in the region of 230,000 households per year. As part of their carbon reduction targets, energy firms must also provide cavity wall and loft insulation to help bring down customers’ bills.

If you think you might be eligible for a brand new replacement boiler, visit and submit your details.

Read more about free boilers and the Energy Company Obligation.

*Update February 2014: although touted as a scheme to replace boilers for free when it was originally launched in January 2013, due to funding cuts more people are being asked to make a contribution towards their new boiler. The boiler grant will meet some of the cost and the householder will need to make up the shortfall.