New evidence requirements for the Child Benefit route into the Energy Company Obligation (ECO4) scheme take effect from 1 April 2023, according to Ofgem's ECO4 delivery guidance published on 3 February 20231. The guidance, version 1.1, sets out how suppliers and the wider supply chain deliver measures that count towards the ECO target1.
The revision covers more than the Child Benefit route. Ofgem states that the v1.1 update relates to "further clarification on Solar PV, Child Benefit and LA Flex suitable evidence, hybrid heat pumps and electric heating systems"1. The document is one of a set covering delivery, supplier administration, local authority administration, new measures and products, and monitoring1.
"These new evidence requirements come in from 1 April 2023."
The ECO4 scheme runs from the commencement of the ECO4 Order on 27 July 2022 to 31 March 2026, and focuses on low income and vulnerable households and improving the least energy efficient homes1. Eligibility for the scheme depends on meeting the private, premises, domestic and occupant requirements set out in the guidance1. The benefits that qualify for ECO4 funding include the Child Benefit route, which is subject to income thresholds set out in the guidance1.
The guidance also sets out how premises are treated for eligibility. Properties with a Lifetime Mortgage through an Equity Release scheme are treated in the same way as a standard mortgage, while Home Reversion Plan cases are considered individually to determine whether they are owner-occupied or private rented sector1. A property occupied by way of liferent meets the definition of owner-occupied premises in the ECO4 Order1. Care homes and student halls of residence are not eligible as they are commercial properties, but houses in multiple occupation can be treated as part of ECO4 if at least one household occupying the HMO is eligible for ECO support1.
Rural and off-gas delivery carries different treatment by nation. Projects delivered in rural off-gas properties in Wales and Scotland receive an uplift of 35 per cent, while in England an uplift for off-gas premises does not apply because those homes are expected to receive support under the Home Upgrade Grant1. In Wales, Rural Urban Indicator Codes D1, D2, E1, E2, F1 and F2 qualify as rural areas1.
Why it matters for households
The Child Benefit route is one of the ways a household can qualify for ECO4 eligibility without receiving a means-tested benefit, so the evidence a household can present matters to whether a project proceeds. From 1 April 2023 the paperwork accepted under that route changes, which affects what an installer or supplier can rely on when assessing a home1.
The guidance also confirms which properties can receive measures at all. Suppliers can only deliver measures, except for repairs, to pre-existing buildings erected before 1 April 2022, or to premises first occupied as domestic premises before the day the installation was completed1. A new build extension is defined as an extension completed on or after 1 April 20221. Premises must be used by occupants for living in on more than a short-term basis, meaning more than three months1.
For homes in Wales and Scotland that are off the gas grid and rural, the 35 per cent uplift changes the economics of a project for the supplier, while equivalent English homes are directed towards the Home Upgrade Grant instead1. The guidance also notes that suppliers may transfer measures to another obligated supplier if all measures linked in a project are transferred together1.
What happens next
The new evidence requirements apply from 1 April 20231. The ECO4 obligation period runs to 31 March 20261. No further changes to the Child Benefit evidence route beyond that date are set out in the guidance1.
Sources1 cited
- ECO4 delivery guidance, ofgem.gov.uk