Who Qualifies for a Boiler Grant?

Heating homes in the UK has never been a costly affair. Almost every home, whether self-occupied or rented, has a boiler and a central heating system as an essential. But over the years, as energy prices have risen, heating a home has become more difficult for many homeowners. Replacement of ageing boilers is another concern, especially for low-income homes.

To handle this difficult situation, the Government of the UK, in collaboration with large energy companies and local authorities, has introduced a wide-ranging system of offering "Boiler Grants" under various heating upgrade schemes, such as the "Boiler Upgrade Scheme (BUS)" and "Energy Company Obligation (ECO4) Scheme". Boiler grant schemes aim to provide financial assistance to homeowners, while energy efficiency and carbon emissions reduction are also major considerations. Replacing boilers powered by fossil fuels (gas and oil) with environmentally friendly heat pumps is another major target of boiler grants. But the most relevant question is, who qualifies for a boiler grant?

Keep reading this blog to know all the basic things about a boiler grant, who is eligible for it, who is not, and how to apply for this grant.      

The Boiler Grant – An Overview

Technically, a boiler grant is a form of Government funding to help households replace their ageing, energy-inefficient heating systems with modern, energy-efficient or low-carbon options. Generally, this grant is non-repayable. The boiler grant usually covers the entire or partial cost of new installations on a case-by-case basis.

The amount of grant one can get on a per-property basis is as follows:

·         For replacement of old boiler with “air source heat pump” - £7,500.

·         For replacement of an ageing boiler with a “ground source heat pump”, such as water source heat pumps - £7,500.

·         For replacement of old boilers with new biomass boilers - £5,000.

·         No grant is available for “Hybrid Heat Pump Systems,” such as an air-source heat pump combined with a gas boiler.

Available Government Schemes for Boiler Grants

Mainly, three such schemes are currently available for Boiler Grants:

1.       Energy Company Obligation (ECO4) Scheme – It is the most popular and main boiler grant scheme. Although it is included in the Government Boiler Grant Schemes, it is mainly funded by large energy companies. This scheme is aimed at providing financial assistance to households that fall under the category of "fuel poverty". These are the households whose spending on heating is not proportional to their income. Under this scheme, the households can get subsidized or even free-of-cost boiler replacements.

2.       Boiler Upgrade Scheme (BUS) – This is entirely a government-funded scheme. The purpose is to encourage low-carbon heating technologies, like "heat pumps". Accordingly, this grant is available only to households planning to replace their current boilers with heat pumps. It is not available for the replacement of current boilers with new gas boilers.

3.       Warm Homes Grants – This scheme is a sub-branch of the main ECO4 scheme, but instead of being funded by large energy companies, it is managed by local councils. It is also intended to provide financial assistance to households experiencing fuel poverty. 

Who Qualifies for a Boiler Grant – Eligibility Criteria

Boiler grants are available if an applicant qualifies for both of the following conditions:

·         It is available to property owners, including those with business properties, second homes, or rental properties.

·         It is available for those property owners who intend to replace the current heating system being run on fossil fuels, such as oil, electricity, gas, or LPG (liquified petroleum gas).

Additionally, this grant is available to households that have already received funding to make their property more energy-efficient. For example, if the property owner has already availed funding for insulating their property, they are still eligible to get boiler grants if they qualify for the above-mentioned two conditions. Moreover, the person applying for a boiler grant must be living in the UK, i.e., England, Scotland, and Wales.

Which Properties Qualify for Boiler Grants

·         The property for which you are applying for a boiler grant must possess a valid “energy performance certificate (EPC)”. Remember, this certificate is only valid for 10 years. If it has expired, you need to get it renewed before applying for a boiler grant.

·         The property must be suitable for low low-carbon heating system.

·         The boiler grant is not available for self-build properties, social housing, or those properties where a government-funded grant is already availed. The boiler grant is also not available for those new build properties that are still not completed by the developers.

Eligibility Criteria for Getting a Grant For Biomass Boilers

·         You can apply for a Boiler Grant for Biomass Boilers if your property is in an area where gas is unavailable.

·         You can still get a grant for biomass boilers if your property is located in a rural area.

·         This grant will be available only for a boiler with a certificate confirming that its emissions are kept at the minimum possible level.

·         A grant for the installation of a biomass boiler is not available for self-build properties.

Benefits-Based Eligibility Criteria

If anyone in a household is getting any of the following qualifying benefits, they are also eligible for a boiler grant. However, this eligibility only qualifies for a boiler grant under ECO4 or other energy company-funded schemes:

·         Universal Credit (UC)

·         Income-based Jobseeker’s Allowance (JSA)

·         Income-Related Employment & Support Allowance (ESA)

·         Income Support (IS)

·         Pension Credit (Guarantee or Savings Credit)

·         Working Tax Credit (WTC)

·         Child Tax Credit (CTC)

·         Housing Benefit (HB)

·         Child Benefit (subject to income thresholds)

Income-Based Eligibility Criteria - Household Income Thresholds

Households not getting any of the above-mentioned benefits can still avail themselves of boiler grants under income-based eligibility criteria, depending on the following conditions:

1.       The boiler grant under this eligibility is based on a household income threshold of £31,000 or less per year.

2.       Council-run ECO4 Flex schemes provide boiler grants to households with low incomes or health vulnerabilities.

For Solo Parent Income Threshold is as follows:

·         With one Child - £19,800 – £27,500

·         With Two Children - £24,600 – £32,100

·         With Three Children - £29,400 – £36,900

For couples, the income threshold is as follows:

·         With one Child - £27,500 - £32,300

·         With Two Children - £32,100

·         With Three Children - £36,900

Additional Eligibility Requirements

·         An Energy Performance Certificate (EPC) should have a rating of D or lower to qualify for boiler grants under most of the schemes.

·         If your current boiler is older than 8 years, you are eligible for boiler grants.

·         If your existing boiler is faulty or energy inefficient, you may be eligible for boiler grants.

·         If any of the members of a household is having a long-term illness, such as respiratory or cardiac diseases, that household is also eligible for a boiler grant under local council schemes.

·         Households where some children, elderly members, or disabled persons live and are susceptible to cold conditions may also be eligible for boiler grants.

How To Apply for Boiler Grants

The process of applying for a boiler grant is straightforward. You need to follow the procedure outlined below:

·         Contact a certified installer and request a quote for the entire installation.

·         Consult the installer to confirm whether you and your property qualify for a boiler grant under any scheme.

·         Negotiate the quote terms with the installer to secure a better price.

·         Once a cost is agreed, the installer will apply for a suitable boiler grant for your property on your behalf.

·         The relevant authorities may contact you to verify whether the installer has your consent to apply for a boiler grant on your behalf.

·         They may also visit your property or call to confirm the installation details.

·         If everything is according to the set criteria, your boiler grant will be approved.

Conclusion

Replacing boilers older than 8 years is critical, as failure to do so can lead to significant maintenance or operating costs. Additionally, the older boilers are often energy inefficient, resulting in extra energy bills. Similarly, older boilers are a major contributor to overall carbon emissions.

Therefore, the government is encouraging households to replace older boilers with new ones, preferably using heat pumps instead of fossil-fuel boilers. The aim is to minimize carbon emissions and enhance energy efficiency. To achieve this goal, the Government has introduced Boiler Upgrade Schemes for which boiler grants are available for eligible households. While some grants are fully government-funded, others are also supported by energy companies. These grants are also available to property owners who are affected by fuel poverty. Before applying for the boiler grant, you must verify whether you qualify using the criteria outlined in this blog.