In order to qualify for ECO4 and Free Boiler funding, you must match certain criteria. Firstly, you must be a Home Owner, with a 7+ year old boiler (or other heating source). The ECO scheme uses Government credit and benefit recipients to identify the most at risk homes of becoming “fuel poor”. This means that to qualify for the main scheme you must also be in receipt of one of the following:
• Income Based Job Seekers Allowance (JSA) 
• Income related Employment & Support Allowance (ESA)
• Income Support (IS)
• Pension Credit Guarantee Credit
• Working Tax Credit (WTC)
• Child Tax Credits (CTC)
• Universal Credit (UC)
• Housing Benefit (new eligible benefit under ECO4)
• Pension Credit Savings Credit (new eligible benefit under ECO4)

Funding for your Home Energy Improvements is paid for by the Leading Energy Companies such as British Gas, SSE, Scottish Power, N-Power and so on. They have a quota to fill for improving the energy performance of UK Homes and can face large fines if they miss their targets. The aim is to reduce how much fuel UK households use on average. To improve this they aim to make generating heat cheaper (with new boilers), and maintaining heat easier (with insulation).

The money for these improvements comes from the profits of companies everyone is contributing to monthly, in our energy bills. It doesn’t come from the Government the same way that things like Universal Credit does. 

Yes, the Energy Company Obligation was a section of the “The Electricity and Gas (Energy Company Obligation) Order” in 2012 that was passed by the UK Government. Since then, various forms of ECO schemes have been in effect, and it’s currently in it’s fourth iteration.

Most people apply for the Free Boiler and typically also Cavity Wall Insulation. Other measures available in the scheme are:
External Wall Insulation
Room in Roof Insulation
Loft Insulation
Under Floor Insulation
Air Source Heat Pumps
Ground Source Heat Pumps
Electric Storage Heaters
And Solar Panels

This largely depends on your boiler, specifically the efficiency rating when it was new, and the age of it. Over 7 years a boiler that was 80% efficient when bought, will no longer be 80% efficient. For a detached 3-bed, you can save up to £365 a year just by switching your boiler to an A Rated new boiler.

It can be surprising how much money you can save with a selection of insulation and a new A Rated Boiler. 

Having Loft Insulation can save you up to £240 a year.

Cavity Wall Insulation can save you up to £275 a year.

External Wall Insulation can save you up to £455 a year.

Internal Wall Insulation can save you up to £455 a year.

Underfloor Insulation can save you up to £95 a year.

*Based off a detached 3 bed house.