Funding
Energy Company Obligation (ECO)
The UK government's 2008 Climate Change Act committed us as a nation to cut carbon emissions by at least 80% by 2050. The first phase is to reduce emissions by at least 34% by 2020. Both targets are against a 1990 baseline.

To help us achieve these cuts, the government has introduced various schemes that give financial support and incentives to encourage householders and businesses to use energy-efficient and low-carbon technologies.

The ECO for the big six energy suppliers was launched in early 2013. ECO funding was introduced to support households living in fuel poverty and help reduce the UK’s energy consumption.

ECO provides support to the poorest and most vulnerable households and for those who live in properties that are classified as hard to treat. These properties cannot achieve financial savings without an additional or different measure of support.

ECO works alongside the Green Deal to give householders support and funding for energy efficiency improvements in their homes. It is in three parts:

Home Heating Cost Reduction Obligation (HHCRO or affordable warmth)

To provide heating and insulation improvements for low-income and vulnerable households (Social housing tenants are not eligible for affordable warmth).

Carbon Saving Obligation

To provide funding to insulate solid-walled properties, and those with “hard-to-treat” cavity walls.

This is not means-tested but can be used in conjunction with the Green Deal. The aim is to provide enough support to make these relatively expensive measures cost-effective.

Carbon Saving Communities Obligation

To provide insulation measures to people living in the bottom 15% of the UK’s most deprived areas. It is expected that this element of ECO will particularly benefit the social housing sector.

Do you qualify for ECO Funding?

If you are a home owner or private tenant you could be eligible for energy efficiency improvements under ECO, if you are in receipt of any of the following benefits.

  • Child tax credit (with a household income of £15,860 or less)
  • Income related employment and support allowance
  • Income based job seeker’s allowance
  • Income support
  • State pension credit
  • Working tax credit (with a household income of £15,860 or less)

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