Changes in the ECO5 Energy Savings Scheme


Written by Keith Fowler

May 23, 2024

The UK’s Energy Company Obligation (ECO) scheme helps people save money on energy bills and makes homes more energy-efficient. As we move from ECO4 to ECO5, it’s important to understand the possible changes in who can get help from this scheme. Here’s a simple explanation of what might change.

What is the ECO5 Scheme?

The ECO5 scheme continues the government’s efforts to help low-income households save money on energy bills and improve energy efficiency. Like the previous ECO schemes, ECO5 Scheme will provide grants for home insulation, efficient heating systems, and other energy-saving measures to help reduce carbon emissions and save energy.

government grant uk

government grant uk

Possible Changes in Who Can Get Help

  1. More Households Can Qualify ECO5 grant is expected to include more households, reaching more low-income families who need help making their homes more energy-efficient. This means that families who previously didn’t qualify for assistance because their income was slightly above the cut-off might now be eligible. Expanding the criteria can make a big difference for many families who struggle to afford necessary home improvements. The goal is to ensure that more people who face high energy bills can benefit from the scheme, leading to warmer homes and lower costs for more families.
  2. Middle-Income Households Might Qualify ECO5 might also help middle-income households who, even though they earn a bit more, still find it hard to pay their high energy bills. These families might not qualify as low-income but still experience financial pressure from expensive energy costs. By including these households, ECO5 aims to support a broader range of people. This change can help reduce the energy burden on middle-income families, ensuring they have access to energy-efficient improvements that can save them money in the long run.
  3. Focus on Vulnerable Groups ECO5 grant might put more focus on helping specific vulnerable groups, like the elderly, families with young children, and people with health issues made worse by cold homes. These groups are often most affected by high energy costs and poor living conditions. By targeting these groups, ECO5 can provide tailored support to those who need it most. This approach helps ensure that the benefits of the scheme reach the people who are most vulnerable to the effects of fuel poverty, improving their living conditions and health outcomes.
  4. Flexibility for Different Areas The scheme could become more flexible, allowing local councils to decide who needs help based on local conditions. Fuel poverty is not the same everywhere; some areas have higher rates of energy inefficiency and poverty. By giving local councils more control, ECO5 can better address the specific needs of different communities. This geographic flexibility means that areas with the greatest need can receive more targeted assistance, making the scheme more effective overall.
  5. Easier Application Process ECO5 scheme might make it easier to apply for help, reducing the amount of paperwork and making the process simpler for households. A complicated application process can discourage people from seeking the help they need. By streamlining the process, ECO5 aims to make it more accessible. This could involve online applications, fewer required documents, or faster approval times. An easier application process means more eligible households can apply and benefit from the scheme without unnecessary delays or frustration.
  6. Support for Renewable Energy Solutions ECO5 funding could also include more support for renewable energy solutions like solar panels or heat pumps. By encouraging the use of renewable energy, the scheme can help households reduce their reliance on fossil fuels and lower their energy bills in the long term. This change would also contribute to broader environmental goals by reducing carbon emissions. Supporting renewable energy solutions can make homes more sustainable and future-proof against rising energy costs.
uk family

uk family

Main Goals of ECO5

  • Reduce carbon emissions by making homes more energy-efficient.
  • Help low-income households save money on energy bills.
  • Improve the overall energy efficiency of homes in the UK.

By achieving these goals, ECO5 Scheme not only helps individual households but also benefits the environment and the economy.

home insulation grant

home insulation grant

Wrapping up the ECO5 potential changes

The ECO5 scheme is a big step forward in the UK’s efforts to reduce fuel poverty and improve energy efficiency. The potential changes show a commitment to making the scheme more inclusive and helpful. As the final details of ECO5 are announced, it’s important for eligible households to stay informed and take advantage of the support available.

Keith Fowler

Keith Fowler

About the author

Keith is your go-to expert for making sense of household bills and finding ways to live more energy-efficiently. He combines practical advice with easy-to-follow tips on managing bills, saving on energy costs, and navigating government grants. Keith believes everyone can achieve a balance between saving money and living sustainably, without needing to be an expert.

Bills overpaid

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