Universal Credit Grants: A little known silver lining for free insulation & heating

Last updated: August 17, 2024

The number of people applying for Universal Credit grants surged to record levels during the pandemic and the numbers are set to rise further with current economic uncertainty.

In addition to a loss of income, households could also be facing a rise in energy bills due to more time spent at home and cold weather approaching. Many will be coming to grips with the benefits system for the first time and starting to understand the rules, regulations and complexities around making a claim.

However, there is a little known silver lining for these claimants. Anyone who has claimed Universal Credit successfully will also be eligible for home improvements under the Government’s Energy Company Obligation (ECO) scheme.

This current scheme, called ECO4, targets people that have high energy costs comparative to household income. The scheme has a list of ‘qualifying benefits’ for eligibility. Universal Credit is on that list.

Understanding Universal Credit grants

According to Ofgem (who administer the ECO scheme), claimants will have a period of 12 months after their last Universal Credit award to receive a grant.

So, if say you were awarded your Universal Credit in April but you got a job last week and came off Universal Credit today (for example), you still have a significant period of time (a year) to apply for a grant and get your heating or insulation installed, as you would still be classed as eligible even when you return to work. While you can wait to apply, we’d recommend applying sooner rather than later as funding rules can change at any time.

Even if you have returned to work or are planning to return to work, you will still be eligible, providing you have had at least one award for Universal Credit.

And it isn’t just Universal Credit recipients who are eligible for grants. Also on the ‘qualifying benefits’ list are the following benefits:

Child Benefit*
Child Tax Credit
Housing Benefit
Income Support
Pension Credit (Guarantee)
Pension Credit (Savings Credit)
Employment and support allowance (income-related)

Jobseeker’s allowance (Income-based)
Income Support
Universal credit
Working tax credit

You could also qualify through the vulnerable route if you claim the following benefits:

Armed Forces Independence Payment
Attendance Allowance
Carer’s Allowance
Constant Attendance Allowance
Disability Living Allowance
Industrial injuries disablement benefit
Mobility supplement
Personal independence payment
Severe disablement allowance
War Pension Mobility Supplement

If you have a health condition or are vulnerable to the cold you can also apply for funding.

Note if Child Benefit is the only qualifying benefit you receive, you will also need to meet additional income rules detailed here.

Apply for a grant

Check eligibility for grants

Fill in the short form to see if you are eligible for Government grants.

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What grants are available?

There are a range of energy-efficiency measures that can be installed under the Energy Company Obligation (ECO) scheme, including boiler upgrades, home insulation and heating upgrades. The Scheme is funded by the major energy companies and if you claim benefits, you are entitled to this funding.

Boiler Upgrade or Replacement

Included as a measure in the scheme for homeowners where the existing boiler is 'non-condensing'.

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Electric Heating Upgrade

Included as a measure where existing heating is electric.

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First Time Central Heating (FTCH)

Included in the scheme for properties that have never had central heating.

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Insulation

A range of insulation options are included in the scheme including cavity wall insulation, loft insulation, room in roof insulation and solid wall insulation

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How much could you get?

The amount of funding available depends on a range of factors, including property type, your existing heating, wall type and potential energy savings from proposed work.

The first step in working out what you could get is to check your eligibility online. There’s a quick form on the Energy Saving Genie site where you can enter your details to see if you are eligible.

If you meet the criteria, you can choose to apply and once the application has been submitted, your application will be passed to a Registered Installer.

The Registered Installer will arrange a free survey of your property. You can choose to proceed ASAP with a survey taking place following strict health and safety guidelines.

Once the survey has taken place, the surveyor will report back to the Registered Installer, who will talk you through the grants that are available towards energy-efficiency measures at your property.

Apply

The application process is easy and will take 2 mins.

Free survey

If you are eligible, a free survey will be booked.

Installation

Installation at a time that suits by a Registered Installer.

The grant is paid directly to the installer and they are awarded on annual bill savings (ABS) scores. The least efficient properties with EPC rating of E, F or G tend to get the most funding. But even if your home isn’t inefficient, it is worth applying as you could still receive a significant grant towards home improvements.

So, if you are one of the many million Universal Credit claimants, you can start the process of applying for a home improvement grant that will knock £££s of your energy bills for years to come.

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