The government's ECO Plus scheme has been rebranded and delayed until summer 2023. It will now focus on helping households with funding for new insulation, which could lower energy bills by £300-400 a year
Government announces plans to launch Great British Insulation Scheme(Image credit: Getty)
The government has announced plans to rebrand the ECO Plus scheme as the Great British Insulation Scheme and delay its launch until summer 2023.
The Great British Insulation Scheme is an energy efficiency programme that aims to expand support for upgrading homes beyond low-income and vulnerable households. The ECO Plus scheme was initially planned to launch in April 2023 but the announcement that it was being replaced was revealed instead.
The initiative is designed to help millions of homeowners who do not currently receive government support for home upgrades. The new name is intended to improve consumer awareness and better explain the available energy efficiency support.
The aim is to reduce fuel poverty in Britain by making homes more energy efficient and help save money on people's heating bills. Here's everything you need to know.
What is ECO Plus, now known as the Great British Insulation scheme?
The Great British Insulation Scheme will extend the support currently offered by the existing Energy Company Obligation, which offers financial support to low-income and vulnerable households to improve the energy efficiency of their homes.
At least 20% of the funding provided by the Scheme will be allocated to support low-income and vulnerable households, who may not be eligible for assistance under the ECO4 scheme due to the physical characteristics of their properties.
The Great British Insulation Scheme will operate until 2026, in conjunction with ECO4, the Home Upgrade Grant, and the Social Housing Decarbonisation Fund, providing comprehensive support to those who are least able to make their homes more energy efficient.
It is hoped the scheme will contribute towards the government's goal of reducing total UK energy demand by 15% from 2021 levels by 2030 and is the first initiative launched by the Department for Energy Security and Net Zero.
Lord Callanan, Parliamentary Under Secretary of State for Energy Efficiency and Green Finance, said "The Energy Company Obligation (ECO) is one of the government’s most successful schemes for improving domestic energy efficiency. It obligates the larger energy suppliers to deliver bill savings for households by installing energy efficiency measures."
"The latest iteration, ECO4, is expected to deliver energy efficiency measures to an estimated 450,000 low-income and vulnerable households."
Which improvements will be available?
It has been announced that loft and cavity wall insulation funding will be available.
How much funding could I receive?
The government has estimated that homeowners who receive insulation upgrades can expect to save around £300-400 annually on their energy bills.
The scheme may cover the entire cost of the insulation, or homeowners may be required to contribute to the cost, depending on the type of insulation and any property-related issues.
The government have also released estimates for the average installation costs by house type for people to see how much the installation should cost.
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Government estimates for average easy-to-treat cavity wall insulation installation costs used in the modelling by house type (2022 prices)
Build Type
Average cost based on consultation assumptions (£)
Average cost based on updated assumptions (£)
Bungalow
940
1530
Detached
1,390
2,140
Semi-detached
1,040
1,570
End of terrace
950
1,550
Mid-terrace
920
1,000
Purpose built low-rise flat
790
980
Purpose built high-rise flat
800
1,030
Converted and non-residential
830
980
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Government estimates for average loft top-up insulation installation costs used in the modelling by house type (2022 prices)
Build type
Average cost based on consultation assumptions (£)
Average cost based on updated assumptions (£)
Bungalow
970
1,320
Detached
1,300
1,040
Semi-detached
950
990
End of terrace
890
940
Mid-terrace
850
860
Purpose built low-rise flat
820
860
Purpose built high-rise flat
890
900
Converted and non-residential
860
870
How long will the Great British Insulation Scheme last?
The Eco Plus scheme, now rebranded as the Great British Insulation Scheme, will run for three years from summer 2023 to March 2026.
Which homes will be eligible?
The Great British Insulation Scheme aims to provide greater assistance to low-income households with homes with an Energy Performance Certificate rating of D or lower, as well as those in the lower Council Tax bands (A-D in England and A-E in Scotland and Wales).
It is estimated that ECO4 is expected to deliver energy efficiency measures to an estimated 300,000 low-income and vulnerable households.
The scheme will be delivered by approximately 2,000 installers each year in the final two years across Great Britain.
After the scheme's introduction, households can check their eligibility through GOV.UK or a participating energy supplier or local authority. If a household qualifies, they will be contacted to schedule a home survey and arrange any necessary installation.
The government has confirmed that 80% of the funding will be made available to help those not currently eligible for existing insulation grants.
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Jack has worked in journalism for 11 years and is the News Editor for Homebuilding & Renovating, a role he has had since 2019. He strives to break the most relevant and beneficial stories for self builders, extenders and renovators, including the latest news on the construction materials shortage and hydrogen heating. In 2021 he appeared on BBC's The World at One to discuss the government's planning reforms.
He enjoys testing new tools and gadgets, and having bought his first home in 2013, he has renovated every room and recently finished a garden renovation.
