Everything you need to know about the ECO3 Scheme

ECO3 is an initiative proposed by the UK government which stands for “Energy Company Obligation” and it sets out to help homeowners better insulate their homes for free. The ECO3 scheme targets specific homeowners who are either living in fuel poverty, are low-income households or vulnerable households. This scheme sets out to provide more energy efficient homes across Britain, helping homeowners live in more comfortable places, save money on their energy bills, and reduce their carbon footprint.

This scheme started in 2013 and by September 2018, there have been over 2.4 million improvements in an average of 1.9 million homes. After the initiative began in 2013, by 2017 the government changed it to ECO2, focusing on supporting low-income households and fuel poor households. However, it still focused 30% of the scheme on all households to aid in reducing carbon emissions, known as the Carbon Emissions Reduction Obligation (CERO). Now, the UK government are solely focusing ECO3 on the Affordable Wealth scheme, which aims to provide support for low-income, vulnerable and fuel poor households. You can read more about the implementation and details of ECO3 here.

The UK government has its sights on replacing old or outdated electric storage heaters completely free of charge. There are no hidden payments, grants or anything that the homeowner has to worry about with the ECO3 scheme. You can learn more about how you apply for ECO3 here. It is important to acknowledge that the ECO3 initiative will be running until March 2022, so it is necessary to submit applications before the deadline.

What is Fuel Poverty?

The terms “fuel poverty” or similarly, “fuel poor” categorises households that have required fuel costs above the national median level. Additionally, if households were to spend money on their energy bills and fuel costs, they would be left with an income below the official poverty line.

Therefore, the ECO3 scheme supports and aims to aid households with people who fall under the term of fuel poverty or fuel poor.

Who is the ECO3 Scheme for?

In addition to low-income households and people considered in fuel poverty, the ECO3 scheme is also targeting vulnerable people, so who falls into this category?

  • Armed Forces Independent Payments
  • Child Benefits
  • Child Tax Credits
  • Disability Living Allowance (or severe disablement allowance)
  • Income Related Employment
  • Income Related Jobseekers Allowance (JSA)
  • Pension Guarantee Credit
  • Personal Independence Payment Carer's Allowance
  • Support Allowance (ESA)
  • Universal Credit
  • Working Tax Credits

What are the Key Details of the ECO3 Scheme?

  • ECO3 is 100% free
  • It ends in March 2022
  • It helps you to save money on energy bills
  • You pay absolutely nothing
  • You can apply in 2 minutes
  • It is a UK government scheme
  • There are no obligations
  • It helps you reduce your carbon footprint