A Guide To Central Heating Grants

The First Time Central Heating Grant is part of the Energy Company Obligation (ECO) scheme. It is available in England, Scotland, and Wales and provides eligible homeowners with a new and efficient central heating system.

To be eligible, you must receive certain benefits. These range from:

• Pension Credit
• Child Tax Credit
• Child Benefit
• Working Tax Credit
• Income Support or Universal Credit
• Income-based Job Seeker’s Allowance
• Income-related Employment Support Allowances

In addition to these criteria, you can only receive a first-time central heating grant if your home has never had central heating (including renewable central heating), or a connection to a district heating system.

According to Ofgem, only homes that are currently using one of the following heating systems are eligible for the grant:

• Electric room heater
• Gas room heater
• Gas fire with back boiler
• Solid fossil fuel with back boiler
• Direct electric underfloor or ceiling heating (not connected to an electric boiler)
• Bottled LPG room heating
• Solid fossil fuel room heaters
• Wood/biomass room heating
• Oil room heating
• No heating at all

The finer details can be found in the tables below:

Yes, you can be eligible for free central heating if the property’s EPC rating is E, F, or G. It’s important to note though that although property EPC ratings may be low enough to be considered, those who rent their property from the local council, housing association or those in shared ownership homes, unfortunately, won’t qualify for the free central heating scheme.

If you are aged 60 or over and already claim working tax credits, you could be eligible for a central heating grant. As a point of clarification, if you only receive a pension, you will only be eligible for a grant if you also receive pension credit on top of your regular state pension.

Unfortunately, as with all free grants and schemes, not everyone who meets the eligibility criteria will receive a grant for first-time central heating.

The reasons for this can be varied, but the main contenders can be because:

• Each company decides how they want to meet its obligations under the ECO, meaning some may have fewer grants available than other providers
• Some companies offer central heating grants, whilst others offer replacement boilers, solar panels, or insulation, essentially reducing the number of free first-time central heating grants as they are fulfilling their requirements in alternative ways
• Each provider decides how much funding they want to dedicate to central heating, thus reducing the number of grants available
• Some providers may choose to cover the full cost of a new central heating system, whilst others may only offer a discount – this is always best to find out before proceeding if you are eligible and approved for a grant, as you may end up paying out more than expected
• Not all energy companies participate in the scheme (we will cover the full list of providers later in this article)
• Even if the energy provider thinks you meet the benefits criteria, they may require a home survey before installing the heating system, which may end up rendering your eligibility void in person, although on paper it may seem like you are a perfect match

You can read more about the application process here. If your energy company can’t offer you a first-time central heating grant, they may still be able to offer a discount or grants towards other measures like loft insulation or cavity wall insulation, so it’s always worth enquiring to see if there are any other solutions available to you.

As we’ve already stated, not all energy suppliers provide the same services or grants. The companies participating in the ECO scheme are as follows:

• British Gas
• Bulb
• E (Gas and Electricity) Ltd
• E.ON Energy including Npower
• Ecotricity
• EDF Energy
• Octopus Energy
• Outfox the Market
• OVO (Including SSE Energy Services)
• Scottish Power
• Shell Energy (formerly First Utility and formerly Hudson)
• So Energy
• The Co-operative Energy
• The Utility Warehouse
• Utilita Energy Ltd

For more information on these companies, including their contact information and ways in which to get in touch with the suppliers, please see Ofgem’s dedicated page.

You don’t need to apply through your own energy provider for a free central heating grant unless you want to. This can be useful for those who are being supplied by someone who isn’t part of the scheme, as you can simply pick a supplier from the list to contact instead.

Your home may be required to have a level of insulation to be eligible for the grant, although this is reviewed on a case-by-case basis, and your chosen supplier will be able to advise you on this.

As we’ve mentioned earlier, this can be one of the failings of in-person checks which may mean you aren’t eligible for the grant, in which case you should seek out alternative grants and schemes to find a benefit that fits your exact situation.

The steps to applying for a first-time central heating grant are relatively simple:

• First, you need to contact your chosen energy supplier and answer questions about your eligibility, including any benefits you may receive and the type of property you live in – so it’s best to have all this information to hand as they will ask for it
• You may need to provide supporting documentation (e.g., benefits letters, a copy of your EPC rating) as part of the application process
• If the energy company thinks you could be eligible, they will pass your details to a registered installer. Since 2020, the installer must be TrustMark approved—make sure to check their credentials before agreeing to any work
• The installer may ask to schedule a home inspection, to check whether your property is suitable for a first-time central heating grant
• After completing their assessment, you will be informed of how much of the grant you can claim

The application process usually takes around 10 weeks, depending on the number of applications and the time of year. For instance, it will be a busier period in colder months than it would be in the warmer seasons, so it’s best to reach out as early as possible to secure the grant and your central heating in time for when you need it.

According to Ofgem, the ECO4 Order began on the 27th of July 2022, and will cover a four-year period until 31 March 2026.

There are circumstances where you can still apply for other grants if you don’t receive any of the required benefits. For instance, these situations could be if you don’t claim benefits but your household income is less than £30,000, if you have high energy bills, or if you live in a property with an EPC rating of D, E, F, or G, which may mean that you might qualify for funding through your local authority, instead.

Depending on the energy company, you may only receive funding for a part of the cost of installing a new central heating system. More commonly, you may be required to pay for part of the installation costs, which is something to bear in mind.

Under the ECO scheme, the UK’s ‘big six’ energy companies provide some of the most vulnerable people in society with brand-new boilers for no cost. You might not consider yourself ‘vulnerable’, but if you have a low income, are a pensioner or receive one or more income-related benefits, you might be able to qualify for this grant.

• Benefits – If you receive a child tax credit, income-based jobseekers allowance, income-related employment support allowance, income support, pension credit or universal credit, you could qualify. In addition, if your household income is less than £16,010 and you receive a working tax credit as a result, you also might be able to get a free boiler.
• Homeowners and Tenants – Regardless of whether you rent or own your home, you could still get a free boiler grant. Tenants need to rent privately and will need to seek, and show evidence of, their landlord’s permission. Meanwhile, any house association tenant who owns over 50 per cent of their home can also apply.
• Boilers – There are several criteria that boilers have to fall into if you’re to get a grant for a replacement. Firstly, boilers must be over five years old. If they’re graded at an energy-efficient rating between C and G, they’ll qualify but A- and B-graded appliances can be considered too if they’re faulty. A boiler should also be under 86 per cent efficient. For more information on free boiler grants, see our dedicated page.

In many cases, you might find that though you’re financially unable to buy a new boiler, you don’t qualify for a grant either. This can be extremely distressing, especially if you’re trying to keep your family warm in the middle of winter – however, there are some alternate options available.

Boiler finance has been created for this very demand, offering you a way to get a new boiler installed for a small monthly payment. In many cases, repayments can be as little as £20 per month, especially if the loan is spread over a five or ten-year period.

The main thing is not to worry when your boiler breaks. If after initial inspection it does need replacing, it’s worth researching potential grant availability, and if you don’t qualify consider finance instead – just make sure to be mindful of any interest charges.

Depending on the size of your house, the cost for central heating installation will differ, as you’ll need more radiators in a four-bed detached house as you would in a two-bed bungalow, for example.

To install central heating in a one-bed bungalow with five radiators and a 24kW boiler is estimated to cost £2,300 to £2,500, while a two-bed bungalow with six radiators and a 24kW boiler is estimated to cost £3,000 to £3,500 to have central heating installed – full information on central heating installation can be found on our dedicated page.

There are a variety of means to reduce energy bills, increase energy efficiency and access free support and help for those without the means to fund their own heating. For example, the winter fuel payment shaves a few hundred pounds off your winter fuel bill, whilst free loft insulation means you won’t need to have your heating on as much.

There are also a few schemes offered by local councils to help with external wall insulation too. In addition, if you receive benefits, are an old-age pensioner or have a low household income, you might be able to get a brand-new boiler for free, too.