Insulation Grants in the UK

For decades, the UK government has run programmes for increasing the energy efficiency of homes in the country. ECO is the latest scheme introduced by the government. It is designed to provide direct insulation grants to households. Find out everything which you should know about this scheme so that you can take full advantage of it.

ECO Basics

ECO stands for Energy Company Obligation. Under this obligation, the six major energy suppliers in the UK have to provide insulation grants to qualifying customer. The scheme was introduced in 2013. It has been estimated that the total granted amount will be around £1.3 billion pounds per year. The participating suppliers include British Gas, Eon, Scottish Power, SSE, EDF and NPower.

What You Get

The insulation grants provide free funding. You will be able to use the money directly without any obligation to repay it. These grants are designed to pay for loft insulation, cavity wall insulation, boiler repair and boiler replacement. With these improvements, you can cut your energy consumption by as much as 50%. This is because most of the heat which is produced in the house escapes through the loft and the walls while a house boiler can account for some 55% of a household’s energy bills.

The average cost of cavity wall insulation has been estimated to be around £415 for a single-family home. The loft insulation costs between £350 and £500 on average. A new boiler costs between £500 and £2,500, depending on its features and capacity. It is important to note that the grant which you will obtain may not cover the whole cost of the energy-efficient improvement. You may have to pay the remainder out of your pocket.


The ECO scheme is designed to provide financial support to low-income households and to households having higher cost of living due to specific circumstances. Individuals who receive Pension Credit or Child Tax Credit with relevant income below £15,860 are eligible to apply. The same applies to people who receive income-based job seeker’s allowance, income support or income-related employment and support allowance. In such cases, additional requirements have to be met as well. Individuals who receive Working Tax Credit with relevant income below £15,860 can apply as well provided that they meet additional requirements. Keep in mind that the requirements are subject to changes and may have some variations from one energy supplier to another.

When you apply for insulation grants in the UK, a representative of the supplier will contact you to inform you if you qualify and your home will be inspected for determining the precise grant size.