The Affordable Warmth Scheme is part of the Government’s ECO (Energy Company Obligation) initiative. It provides grants to low income households so that they can improve the energy efficiency of their homes.
This is achieved by awarding boiler grants and storage heater grants to householders who have faulty central heating boilers or faulty electric storage heaters, AND who receive certain means-tested State Benefits or Tax Credits.
The Energy Companies Obligation was introduced to help reduce energy consumption for qualifying householders who are living in fuel poverty.
Affordable Warmth Scheme funding starts in the form of a levy on everyone’s electricity bill and the money collected is directed in to an ECO Fund. This money is distributed in the form of ECO Grants to accredited installation companies once they have completed the boiler or storage heater installation.
Boiler Grant Qualifying Criteria was simplified on the 1st April 2017 so that more households can take advantage of the ECO Scheme.
The Government has indicated that this new ECO Scheme will run for a transitional period of 18 months. This will provide time to consult on the details of a Fuel Poverty Scheme intended to run for a further 4 years.