Thousands are missing out on £2,500 free grant to improve energy efficiency in homes – and it will help lower bills too
THOUSANDS of households are missing out on free cash to help improve their home’s energy efficiency.
The Energy Company Obligation is a government scheme to help hard-up households upgrade their property.
A free gas boiler is one of the upgrades available for those who otherwise would not be able to cover the cost.
A new boiler costs an average of between £1,000 and £3,500, according to British Gas estimates, depending on the model.
Replacing your old boiler with a new energy-efficient one could save you hundreds a year on bills too.
Boilers that are 10 years or older are much more likely to be inefficient, according to energy comparison site Bionic.
Old boilers are only 60% efficient, which means 40% of energy needed to run them is wasted.
This means you’re unnecessarily driving up your energy bills.
According to British Gas estimates, you can save as much as £840 by replacing your old boiler with an energy-efficient one.
You might qualify for the help if you live in private housing and get one of the following benefits:
- Child Tax Credit
- Working Tax Credit
- Universal Credit
- Pension Guarantee Credit
- Pension Savings Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Benefit
- Housing Benefit
If you own your home, it must have an energy efficiency rating of D, E, F or G.
Whereas if you rent from a private landlord, the house must have an energy efficiency rating of E, F or G.
You can check the energy rating of your home using the following tool on the government website: https://www.gov.uk/find-energy-certificate.
There is no cap on funding that households can get for a new boiler.
It means that you could get a grant to cover the total cost of a replacement boiler.
The scheme also offers help with covering the cost of other energy efficient measures, like insulation and heat pumps.
To apply for the scheme you can contact your local authority or your energy supplier – see which ones are part of it below.
- British Gas
- E (Gas & Electricity)
- E.ON
- Ecotricity
- EDF
- Octopus Energy
- Outfox the Market
- OVO
- Scottish Power
- So Energy
- Utility Warehouse
- Utilita
MORE HELP
It’s not the only scheme that can help you cover the cost of making your home efficient.
The Boiler Upgrade Scheme offers households grants up to £7,500 to install heat pumps in their homes.
They are better for the environment than boilers and can save you money on your energy bills.
Previously, households needed to have loft or cavity wall insulation installed in their property to be eligible for the scheme.
But earlier this year the Government changed the qualifying criteria which means it’s now not mandatory.
The Government has said the change to the scheme could save households around £2,500 in total, and it means they no longer need to have insulation installed before applying.
Heat pumps work by shifting heat from the ground or air into your home.
The cost of installing a heat pump can vary from between £2,000 to £15,000, according to Checkatrade.
To get the help you must:
- live in England or Wales
- own the property you’re applying for
- be using the grant money to replace a fossil fuel heating system (such as oil, gas, electric or liquefied petroleum gas)
- have a valid Energy Performance Certificate (EPC)
You can apply for one of the grants by first contacting a MCS certified installer to get a quote.
What is a heat pump?
A heat pump is a type of renewable energy technology that enables you to heat your home in an environmentally friendly way.
They deliver heat at a lower temperature than gas and oil boilers so they have to be run for much longer periods at a time.
There are also ground source heat pumps that take the heat from underground by pumping water through it in pipes.
Heat pumps take the available heat from the ground or air and increase it to a higher temperature using a compressor.
It then transfers the heat to the heating system in your home.
The pump uses electricity to run but it takes less energy than the heat it produces, making it an efficient way to warm your home.
They should tell you if you are eligible for one of the grants.
You can find a list of MCS-certified installers by going on the msccertified.com website.
Once you’ve agreed a quote with the installer, they will apply for the grant on your behalf.
The value of the grant is then deducted off the cost of installation, which of course means you might have to pay out some money towards the cost of having one installed.
So, for example, if you are applying for an air source heat pump and it costs £12,500 in stall, you would have to pay £5,000.
CASH BACK FOR BOILERS
Meanwhile thousands of households could be owed up to £120 tax refund if they bought a new boiler this year.
Many of the UK’s top manufacturers hiked the prices of the gadgets in anticipation of the Clean Heat Market Mechanism (CHMM).
The scheme was supposed to come into effect in April to help reach environmental targets.
It would have seen boiler firms fined if they did not sell a certain number of heat pumps each year compared to boiler sales.
Major manufacturers raised the prices of gas boilers by £12 ahead of the change to cover any future fines.
If you bought a new boiler between January 1 2024 and March 21 2024, you may have had up to £120 (excluding VAT) added to the cost, according to MoneySavingExpert.
You are entitled to a refund but the amount you can get varies from supplier to supplier.
- Baxi boiler: £120 but you must have bought it between January 1 – March 18, 2024
- Ideal boiler: £110 but you must have bought it between January 1 -March 15, 2024
- Glow Worm boiler: £95 but must have been bought between January 1 – March 19, 2024
- Worcester Bosch: £120 but must have been bought between January 1 – March 15, 2024
It has been estimated that over 400,000 new boilers were sold over this time period, so it is worth checking to see if you are entitled to the rebate.
But it is important to note that not everyone would have had the levy added to the cost of their new boiler.
What energy bill help is available?
THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
This is because boiler manufacturers don’t typically sell directly to the customer, but instead to outside parties such as plumbers.
So it may have been the case that they were taxed and not you.
It’s been advised that you check the invoice for your new boiler and see whether it makes any reference to the tax levy.
Even if it does not mention it the charge may have still been made so it is worth calling up your installer and asking them.
According to MSE, boiler manufacturers involved have said they have refunded their customers.
Meanwhile, Wolsely and City Plumbing, two of the biggest UK distributors of boilers, said they “have received the manufacturers’ refund and have passed this on to their customers”.
It is important to remember that you are only entitled to a refund if the charge was added to the cost of your new boiler during the specific time period.