The Department for Work and Pensions benefits data matching facility will close for Energy Company Obligation (ECO3) eligibility matching on 31 March 2022, the National Insulation Association has reported, citing an update from the Department for Business, Energy and Industrial Strategy1.
The association said it is unlikely that BEIS will be able to reopen the facility until the ECO4 statutory instrument comes into force1. No date for that instrument is given in the update.
Parties participating in ECO can still check eligible households up to 31 March 2022, and can still check eligibility through alternative forms of benefit evidence after the facility closes1. Eligibility under Local Authority Flexibility does not rely on data matching, so targeting under LA Flex is not affected by the closure1.
"The Department for Work and Pensions (DWP) benefits data matching facility will close for ECO3 eligibility matching on 31st March 2022."
The practical effect of the change depends on how a household's eligibility is evidenced. The table below sets out what the update says about each route.
| Route | Position after 31 March 2022 |
|---|---|
| DWP benefits data matching for ECO3 | Closed; unlikely to reopen until the ECO4 statutory instrument comes into force1 |
| Alternative forms of benefit evidence | Still available to ECO parties1 |
| LA Flex targeting | Unaffected, as it does not rely on data matching1 |
Why it matters for households
ECO is the obligation on energy suppliers to fund energy efficiency improvements in qualifying homes, and eligibility has generally been established by matching a household against DWP benefits records. The closure of that matching route means the fastest way of confirming eligibility under ECO3 ends on 31 March 20221. For a household whose eligibility was to be confirmed by that check, the route available afterwards is alternative benefit evidence, which the update says ECO parties can still use1. What that evidence consists of, and how long it takes to assemble, is not set out in the update.
For a home's energy independence, the consequence is timing rather than entitlement. The qualifying benefits themselves are not changed by this update, and the update does not say that any household loses eligibility. It says the checking mechanism closes, and that LA Flex, which local authorities use to target households in their areas, continues unaffected1. Households in areas covered by an LA Flex statement are therefore not exposed to the closure in the way that benefit-matched households are.
The update does not state how many households or installations are affected, and no figure for the number of checks made through the facility has been reported1.
What happens next
The update gives one dated step: the facility closes on 31 March 20221. Reopening is expected only when the ECO4 statutory instrument comes into force, and no date for that is given1. The rules that will apply under ECO4, including which benefits qualify and what property conditions apply, are set out in the ECO4 eligibility guide. The wider set of grant schemes available for home energy improvements is covered in the grants and schemes hub.