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Last edited 06 Jan 2023
ECO+ scheme announcement and consultation
On 28 November 2022, Business and Energy Secretary Grant Shapps launched a government push to help millions of people across the country bring down their energy costs. This is part of plans to deliver a new energy demand reduction target which was announced in the Autumn Statement, reducing energy demand by 15% by 2030.
Under the plans announced, the new ECO+ scheme will extend support to those not currently benefitting from any other government support to upgrade thier homes. In addition to the existing £6.6 billion ‘Help to Heat’ energy schemes this new £1 billion funding will ensure hundreds of thousands more households benefit from new home insulation and with that, lower bills.
Of the £1 billion funding available through the new ECO+ scheme, around 80% will be made available for those households who are in some of the least energy-efficient homes in the country – that is, those with an EPC rating of D or below – and in the lower Council Tax bands.
This is on top of £6.6 billion of existing spend in this parliament through Help to Heat schemes including the Social Housing Decarbonisation Fund, Home Upgrade Grant and Local Authority Delivery Scheme.
The UK Government intends to lay necessary legislation for the scheme to launch in spring 20223 and run until March 2026. However, the government also plans to work with energy suppliers to explore the potential for some earlier delivery in 2023. The consultation will ran from 28 November to 23 December 2022.
The existing ECO scheme (known as ECO4) is targeted at those who need support most; those in social housing, on a low-income or fuel poor. However, with the significant increase in energy bills, the government intends that up to 80% of ECO+ will help a wider customer base who are currently not eligible for support under existing government-backed energy efficiency schemes.
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