If it appears that a new boiler may not fit within your budget, don’t panic: there are grants and funding schemes available. 

Part of the government’s scheme to ensure warmer homes, cut carbon emissions, and support low-income households suffering from fuel poverty.

Schemes such as these are subject to change, so there is often a benefit to checking official websites for the latest information. For this reason, let’s explore the most current option available now:

1. Energy Company Obligation Scheme

This is an incentive by the government towards helping households become more energy-efficient. Big energy companies fund the ECO scheme with a focus on low carbon emissions and household needs.

ECO, formed in 2013, is already in its fourth phase, known as ECO4; it runs up to March 2026. This scheme funds all types of home improvements, involving cavity wall insulation, loft insulation, or even replacing an old boiler with a new one that is more energy-efficient for eligible households.

It is available throughout England, Scotland, and Wales. It’s helping to make life easier for those households struggling to keep warm and to manage their energy bills more effectively. 

Whether it’s a new boiler or better insulation, this ECO scheme helps you create a warmer, cosier home without the upfront cost.

Am I Eligible for the ECO4 Free Boiler Grant?

The ECO4 scheme is designed to support those households in need, but its criteria may be quite strict. It’s your energy supplier who confirms whether you qualify, but let’s just take a look at the major requirements:

Who qualifies?

• Homeowners or private tenants who have obtained permission from the landlord.
• Homes with an EPC rating of E, F, and G.
• Properties where a gas metre was installed prior to April 2022.
• The existing boiler is over 15 years old and non-condensing.

You may also be in receipt of certain government benefits like:

• Universal Credit (UC)
• Income Support (IS)
• Working Tax Credit (WTC)
• Child Tax Credit (CTC)
• Pension Guarantee Credit
• Pension Savings Credit

What about Local Authority Flex (LA Flex)?

Another avenue to enter the ECO4 scheme is through a route called Local Authority Flex, or LA Flex. This allows the councils and local authorities to relax the eligibility rules further so that more households could benefit.

You could have help through LA Flex if this applies in cases of energy costs, especially in situations like fuel poverty. 

It’s your chance to receive a grant either for a new boiler or energy-saving measures. Thus, one should always check with their local council whether this option is available in your area.

2. Boiler Upgrade Scheme

If you want to make this switch with a low-carbon heating system, then the Boiler Upgrade Scheme may be in order. It provides an upfront grant for replacing a crude oil or gas boiler with green heating systems like heat pumps and biomass boilers.

How much are you able to get?

• Anything as little as £7,500 is available to install an Air or ground source heat pump.
• Biomass boiler: £5,000.

To be eligible, you will need:

• EPC certificate, which is less than 10 years old, does not recommend loft or cavity wall insulation.
• An application through an MCS-accredited installer.

This has now been extended to 2028, so there is still plenty of time to decide if this is a viable option. Note: Hybrid systems such as heat pumps with backup gas boilers are excluded.

3. Affordable Warmth Obligation

It also funds the Affordable Warmth Obligation, part of the ECO scheme: for boilers and other energy-saving improvements that help households with the cost. The scheme in Wales is called Nest and is managed by British Gas.

To qualify, you’ll need to meet certain conditions.

• Owning your home or renting from a private landlord – but only with their consent.
• Living in a house that is expensive to heat and implicitly energy inefficient.
• Having low income, a specific benefit income, especially if someone in the household has a chronic illness.

The full list of eligibility criteria can be found on the Affordable Warmth Obligation page of the UK government’s website. Contact the scheme operator in your area for further information.

4. The Great British Insulation Scheme (ECO+)

The Great British Insulation Scheme, also known as ECO+, is a newer part of the ECO program, with the aim to help even more people and those who do not receive benefits until March 2026.

You might qualify if your home is EPC rated D or below and is in council tax bands A-D for England or A-E for Scotland and Wales. There are two types of support available:

• Insulation: One type of insulation will be provided to all qualified.
• Heating controls: You can also apply for heating controls under the low-income category, which makes the boilers cheaper to run.

Options to Rent a Boiler, Pay Monthly

If you are not eligible for a boiler grant or a free replacement, another possibility is to rent a boiler. It simply means that instead of upfront costs for the boiler or its installation you pay through monthly payments.

The shorter the contract, the larger the monthly payments are; longer ones spread out. Some firms allow you to pay a deposit upfront and, accordingly, reduce the monthly repayments of the loan.

Keep in mind:

• Check if your payments stay the same every month. See if they might increase later.
• Watch out for late payment penalties because those really can add up quickly.

If you intend to move out before the end of the contract period, you may be required to pay off the remaining balance in full.

This might be a good option if you can’t pay for everything upfront. But it is a long-term commitment and usually more costly overall than simply buying a boiler outright. Be sure to read the terms carefully before committing.

Of course, a good boiler is first in demand, especially during winter. And if you can’t afford to get a new one, you should consider the help of the ECO4 Free Boiler Grant.

The government designed this scheme to help low-income households. It pays the full price for a new boiler. It also covers the cost of installation.

See if you qualify today, and take the first step to a warmer, more energy-efficient home at no cost to you.