ECO4 scheme starts with changes to benefit eligibility

The fourth phase of the Energy Company Obligation begins on 1 April 2022, removing several disability benefits from automatic eligibility and requiring claimants to receive another qualifying benefit.

The fourth phase of the Energy Company Obligation, known as ECO4, is due to start on 1 April 2022, according to Entitledto, an independent benefits information service1. Under the changes, households that include someone claiming a disability benefit will no longer automatically meet the eligibility rules for heating grants1.

Entitledto states that the government was consulting on changes to the eligibility criteria for ECO4 at the time of publication1. It reports that after April 2022, claimants will need to be in receipt of another benefit to qualify1.

The disability benefits being removed from automatic eligibility in April 2022 are1:

Benefit removed from automatic eligibility
Armed Forces Independence Payment
Attendance Allowance
Carer's Allowance
Constant Attendance Allowance
Disability Living Allowance
Industrial Injuries Disablement Benefit
Personal Independence Payment
Severe Disablement Allowance
War Pensions Mobility Supplement

The benefits that remain eligible for the ECO scheme from April 2022 are1:

Benefit eligible under ECO4
Income based Jobseekers Allowance
Income related Employment & Support Allowance
Income Support
Pension Credit
Housing Benefit
Working Tax Credit
Child Tax Credit
Universal Credit

Entitledto also states that households qualify if they claim Child Benefit and have an income below a threshold, with the amount varying according to the number of children1.

"After April 2022 you will need to be in receipt of another benefit to qualify (see list below)."
Entitledto1

To receive an ECO grant, a registered installer must survey the home to check that all necessary criteria are met, double checking which benefits are received and confirming whether the applicant is a private tenant or owns their own home1. Applicants will also be asked about energy efficiency in the home and possibly for details about their Energy Performance Certificate1.

Why it matters for households

From 1 April 2022, households where the only qualifying benefit is one of the nine disability benefits listed above will no longer meet the automatic eligibility rules for ECO4 heating grants1. This affects people claiming Attendance Allowance, Carer's Allowance, Disability Living Allowance, Personal Independence Payment and the other benefits removed from the list, unless they also receive one of the benefits that remain eligible, such as Universal Credit, Pension Credit or Housing Benefit1. Households claiming Child Benefit with an income below a threshold continue to qualify, with the threshold depending on the number of children1. Entitledto notes that readers affected by the change are shown its page because of the information they have entered1.

What happens next

The government was consulting on changes to the eligibility criteria for ECO4 at the time the information was published1. ECO4 is due to start on 1 April 20221. Further details of the outcome of that consultation have not been reported in the information available. Households can read more about benefits and how they interact with heating grant eligibility.

Sources1 cited
  1. Heating grants and standards for private tenants - Entitledto entitledto.co.uk