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What is ECO4

Beginning in March 2022, the Energy Compliance Obligation (ECO) is in its fourth phase. From then until 2026, it will be in operation. What are the main objective of ECO4? The scheme’s principal aim is to strengthen the least energy efficient housing stock occupied by low-income and vulnerable households, allowing us to get closer to our statutory goal of upgrading as many fuel-poor dwellings as practically possible to EPC band C by 2030, with a band D interim goal by 2025. Modification being considered in ECO4

What is the energy Obligation

ECO is a government-funded initiative that aims to improve energy efficiency in households across the United Kingdom. Energy companies must comply with this responsibility by implementing energy efficiency measures in households across England, Scotland, and Wales. The present ECO plan will expire on March 31, 2022. This consultation is for the next ECO, which will run from April 1, 2022, through March 31, 2026.

ECO Benefits

There are some modifications being considered in ECO4 right now:

  • Changes to the benefits that are eligible (removing a number of disability benefits)
  • The number of measures to be included in the Local Authority Flexible Energy
  • Program has been chosen to be reduced (up to 50 percent of measures can be installed
  • under council rules whereas it was previously capped at 25 percent)
  • It has been suggested that additional standards be added to the Energy Performance Certificate (EPC).
  • The elimination of the boiler from the plan
  • Qualifying benefits proposed of ECO4

You will qualify if you are on are in receipt of one of the following benefits.

    • Income Based Jobseekers Allowance (JSA)
    • Income Related Employment & Support Allowance (ESA)
    • Income Support (IS)
    • Pension Credit Guarantee
    • Working Tax Credit (WTC)
    • Child Tax Credits (CTC)
    • Universal Credit (UC)
    • Housing Benefit (a new benefit making people eligible for ECO4)
    • Pension Credit Savings (another new eligible benefits for ECO4)

For ECO4, the following benefits will be removed from the eligibility list:

  • Armed Forces Independence Payment
  • Attendance Allowance
  • Career’s Allowance
  • Constant Attendance Allowance
  • Disability Living Allowance (DLA)
  • Industrial Injuries Disablement Benefit
  • Personal Independence Payment (PIP)
  • Severe Disablement Allowance
  • War Pensions Mobility Supplement

Meeting the ECO4 ‘minimum requirement’

Works on properties participating in the plan may be subject to a minimum level of improvement as determined by the SAP score on EPCs (Energy Performance Certificate). The improvements needed will be determined by their EPC (Energy Performance Certificate) rating at the start. Package measures will be deflated for properties that do not satisfy the Minimum Requirement (i.e. the needed EPC rise). For homes in the E, F, or G EPC categories, there will be certain exceptions to the Minimum Requirement. Exemptions to the MRs We acknowledge that, for various reasons, not all eligible houses will be able to meet the MRs. As a result, we recommend allowing MR exemptions for all Band E, F, and G characteristics under specific instances.

The proposed exemptions are:

  • Where the property is a listed building
  • Where the property is in a conservation area (and failed to gain planning permission)
  • Where the property houses a protected species that would be materially affected by one or more installations (most likely – though not necessarily –bats)
  • Where local environmental conditions mean some measures can never be appropriately installed (for example regular exposure to driving rain)
  • Where the structure or fabric of the building or access constraints prevents installation of some measures – e.g., a narrow passageway that cannot accommodate scaffolding for external wall insulation or a wall type that is not suitable for cavity or solid wall insulation; and, Where it would otherwise be unlawful – e.g., where planning permission has been refused.

EC04 cost assumptions

In ECO4, we assumed that third-party contributions to SWI would be 75%. Local governments and devolved administrations, in line with evidence, are the primary contributors. However, because the number of ECO eligible E, F, and G families in need of SWI will be much larger in 2022 than in ECO3, and there may be fewer instances of regional co-funding in England and Wales, we recommend that the projected third-party contribution for SWI be reduced to 0% from 2022.