Boiler grants: Everything you need to know

What are boiler grants?

In an effort to help any low-income households that are most at risk from fuel poverty and the rising cost of living, the UK government offers free boiler schemes and grants. These are designed to make it possible for eligible homeowners to get a new boiler installed, even if they don't have the funds to afford it.

In England, free boiler grants are funded by the Energy Company Obligation (ECO) scheme. This is an initiative organized and monitored by the government that requires big energy companies to take more responsibility for ending fuel poverty and cutting the country's carbon emissions. The aim is that by giving at-risk households access to full or partial funding from their energy supplier to make their homes more energy-efficient, their fuel consumption and bills will be reduced.

What boiler grants are available?

The list of available boiler grant schemes is changing all the time, with new offers and deals being added for eligible households, so it's important to double-check what's available before applying for a specific boiler scheme.

In this section of the guide, we'll walk you through the government boiler schemes and grants that are currently available in the UK* for eligible homeowners.

*Information correct as of 22/12/22. Schemes are subject to eligibility, terms and conditions.

ECO4 scheme

The government's ECO boiler grant scheme is the primary scheme in the UK. Launched in 2013, it is funded by some of the biggest energy suppliers in the UK including British Gas, Eon, EDF, Octopus, OVO, Bulb, and Scottish Power.

ECO stands for Energy Company Obligation to reflect the scheme's goal of making energy companies accountable for supporting low-income households.

The most recent update to this scheme is ECO4. This continues the government's effort to provide support for low-income households who wouldn't otherwise be able to afford to heat their homes or invest in an energy-efficient boiler.

It's important to note, though, that the ECO4 scheme does not provide funding to individual households eligible for support. Any payments are made directly to the company that will be installing your new boiler, replacement boiler, or insulation improvements.

Who is eligible for the ECO4 scheme?

To find out if you qualify for a free new boiler under the ECO4 scheme you'll need to fill in some details about your current living and financial situations online. There are certain criteria that you have to meet in order to be eligible for a free boiler, but the main requirement is that you are receiving some form of qualifying benefit from the government. These include:

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

As well as receiving income support from the government, the ECO4 boiler grant scheme stipulates that your property must have an energy rating of D, E, F, or G. This is because one of the main objectives behind ECO4 is to support low-income households to become more energy efficient and reduce their carbon footprint.

Your current boiler must also be at least 10 years old to qualify for a free replacement. If it's not more than 10 years old, the scheme assumes that it will be more cost-effective to repair your existing boiler rather than replace it.

Boiler Upgrade Scheme (BUS)

The Boiler Upgrade Scheme is designed to provide grant funding to cover part of the cost of replacing an oil boiler or gas boiler with a new, low-carbon heating system. This might be a heat pump or biomass boiler.

Under the Boiler Upgrade Scheme, you can get grants for:

• £7,500 towards an air source heat pump

• £7,500 towards a ground source heat pump (including water source heat pumps and those on shared ground loops)

• £5,000 towards a biomass boiler

Currently, the BUS is only available to people living in England and Wales, but residents of Scotland could be eligible for interest-free loans to help towards improving their home's energy efficiency. Also, to be eligible, you must be the owner of the property in question.

LA Flex funding

This stands for Local Authority Eligibility Flexibility and refers to the ability of councils and local authorities to widen the eligibility criteria for the ECO4 scheme to provide tailored energy efficiency support for residents of their constituencies. This is important because the cost of living is higher in certain areas of the UK, meaning fuel poverty is more acute.

The aim behind LA Flex is to broaden the reach of the support offered by large energy companies to lower-income households that aren't on any means-tested benefits but are still in fuel poverty or considered at additional risk from the cold. LA Flex can help households get a new boiler with a better energy-efficiency rating to help reduce energy bills.

Warmer Homes Scotland Scheme

Part of the Scottish government's Home Energy Efficiency Programmes (HEEPs), the Warmer Homes Scotland Scheme is designed to help struggling households heat their homes by funding boiler replacements and upgrades.

This scheme enables eligible homeowners to get a free boiler along with free central heating systems, loft insulation, cavity wall insulation, and systems for generating their own renewable energy.

Who is eligible for the Warmer Homes Scotland Scheme?

In order to meet the eligibility criteria for this scheme, homeowners must have lived in their property for at least 12 months and be able to provide proof that they are struggling to afford their energy bills.

You can use the self-assessment form on Home Energy Scotland's website to find out if you are eligible for energy-saving improvements.

NEST

NEST is the Welsh government's boiler grant scheme and is part of the wider Warm Homes scheme. It provides support for low-income families and people with certain health conditions to get replacement boilers and other energy-saving solutions.

Who is eligible for NEST?

As with the other government-funded boiler grant schemes, NEST is for people who are receiving certain low-income benefits such as universal credit.

NEST is also designed to help people who have health conditions that are made worse by the cold. These include circulatory, respiratory, and mental health conditions.

How do you apply for a free boiler grant?

The easiest way to apply for a free boiler scheme is via the dedicated website for the respective scheme or provider. Use the online application forms listed below to find out if you are eligible for a new boiler grant, help with installation costs, or boiler repair support.

• Apply for the ECO4 scheme
• Apply for the Boiler Upgrade scheme
• See if you are eligible for LA Flex funding
• Apply for the Warmer Homes Scotland scheme
• Apply for NEST

Or, for additional help and more information regarding boiler grants, reach out to the following scheme operators:

• England and Wales: Simple Energy Advice - 0800 444 202
• Scotland: Home Energy Scotland - 0808 808 2282

Alternatives to government boiler grants

If you aren't eligible for a government-funded boiler grant, there are other options available to you which could help with the costs of buying a new or replacement boiler.

Finance schemes such as boiler subscription services provide an easy, stress-free way  to avoid the high upfront cost attached to getting your current boiler replaced or buying a new boiler if you are moving home. You can get an inefficient boiler replaced with a new, more energy-efficient A-rated boiler that can help reduce your energy bills and carbon emissions without having to pay everything upfront.