Hundreds of thousands of households across the UK will get free home insulation, including loft and cavity wall insulation, under a three-year Government scheme announced today (November 28). The scheme, called ‘ECO+’, could knock around £310-a-year off energy bills for those eligible.
Unveiled by the Government's Business Secretary Grant Shapps, the scheme will run from April 2023 until March 2026. It will see free loft and cavity wall insulation being offered to eligible homes with a D or worse efficiency rating an average.
However, the Mirror has reported that the £1billion plan is thought to be worth a third of the £3bn called for by industry chiefs. Labour blasted it for helping a “tiny fraction” of those in the cost-of-living crisis.
What is ECO+?
ECO stands for Energy Company Obligation and involves energy suppliers helping you retrofit your home to make it more energy efficient. ECO has been running since 2013, with the existing ECO4 phase for social housing, low income or fuel-poor tenants.
The new phase of the scheme runs from April 2023 to March 2026. Part of Chancellor Jeremy Hunt's bid to cut Britain’s energy use 15 per cent by 2030, people in certain homes will be able to get loft insulation and cavity wall insulation.
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While topping up or installing insulation are among some of the cheapest home upgrades, the measures have a big effect. The Government claims it could save eligible households £310-a-year in bills.
Are you eligible?
The new phase was announced today and details are quite scant, however, the Government has laid out basic principles. For most of the help you’ll have to fulfil two criteria at the same time - your home must be in a “lower council tax band” and also have an EPC of D or worse. Lower bands are classed as A-D in England, A-E in Scotland, A-C in Wales.
The remaining 20 per cent of the help will be focused instead on the most vulnerable, including those on means-tested benefits or in fuel poverty, the Government said. It is not yet clear how this eligibility will be decided, with the details set to be thrashed out in a consultation starting today.
What could I get?
This is not a grant scheme so you won’t be given cash directly, and there is no set amount you’ll get. However, officials expect around 410,000 households to benefit from the scheme, which on average works out at just under £2,500 each.
Be aware, though, that for the 80 per cent of people in the ‘general eligibility’ group, they may have to pay some of the cost of pricier measures themselves. Suppliers will be “incentivised to achieve an average level of consumer contribution”, and “have flexibility to achieve this average by leveraging higher contributions from wealthier households and for more expensive measures”.
Reports had claimed people would also be offered smart energy controls like thermostatic radiator valves, but these are only being offered to the poorest 20 per cent of people if they are also getting insulation.
How do I apply?
People can contact their energy supplier or local authority to see if they are participating in the scheme. This is because it is an obligation on suppliers to administer, rather than a grant scheme. A new Gov.uk website will also provide information on eligibility.
Is this the same as the energy saving ad campaign?
No. Separately an £18million publicity blitz has been confirmed. This campaign is designed to urge people to turn down their boiler flow temperature from 75C to 60C - saving £160 a year off bills for a typical home. Families will also be urged to turn down radiators in empty rooms, and draught-proof windows and doors. Energy-saving tips will be available on the existing Government website - https://helpforhouseholds.campaign.gov.uk/
What has the response to the news been?
Business Secretary Mr Shapps said people would see the scheme "protecting the pounds in their pockets, and creating jobs across the country". Saving energy will cut costs to taxpayers, because the Government is propping up bills until 2024.
Chancellor Mr Hunt said: “It will help hundreds of thousands of people across the UK to better insulate their homes to reduce consumption, with the added benefit of saving families hundreds of pounds each year.” The new was not so enthusiastically met by the Shadow Climate Change Secretary Ed Miliband though who said: “This reheated announcement with no new resources, is far too little too late and will help only a tiny fraction of the millions of people facing a cost of living emergency this winter.
“Labour’s Warm Homes Plan would insulate up to two million homes a year, saving pensioners and families up to £1,000 off their energy bills. Rishi Sunak wants to crawl towards warmer homes and cheaper bills for our country. Labour will sprint for it.”
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