The government published its response to the ECO+ consultation on 27 April 2023, confirming the scheme's design and renaming it the Great British Insulation Scheme. The National Insulation Association, an industry body, summarised the outcome, stating that "ECO+ has been renamed as The Great British Insulation Scheme to help with consumer awareness"1.
The scheme will target two groups. The general group covers homes with an EPC rating of D to G within Council Tax bands A to D in England and A to E in Scotland and Wales; eligibility in Wales was widened from bands A to C as consulted on1. The low-income group covers homes rated D to G and broadly mirrors the household eligibility rules of ECO4, being on means-tested benefits or living in the least efficient social housing1. At least 20 per cent of each supplier's annual phase target must go to the low-income group, and households treated through a flexible eligibility route can make up to 80 per cent of that minimum1.
| Nation | General group Council Tax bands |
|---|---|
| England | A to D |
| Scotland | A to E |
| Wales | A to E |
Suppliers must meet at least 90 per cent of each annual phase target within that year, with any shortfall made up by scheme end, and there are no constraints on exceeding annual targets1. Ofgem is the scheme administrator1. Each household in the general group can receive only one measure, while owner-occupied low-income households are eligible for heating controls in addition to an insulation measure1. All measures must be delivered in accordance with PAS 20351. The government assumes general group households will collectively contribute £80 million towards insulation measures, equivalent to 10 per cent of the £800 million budget earmarked for that group1.
The response also set out amendments to ECO4, including reverting the definition of a renewable heating system to the ECO3 wording of "wholly or partly", allowing solar PV alongside electric storage heaters and electric heating systems1. Coal, oil, LPG and biofuels remain excluded fuels1. SAP10 and RdSAP10 assessments will be used for evidencing instead of SAP2012 and RdSAP20121.
"The general group will consist of those living in homes with an EPC rating D-G and within Council Tax bands A-D in England and A-E in Scotland and Wales"
Why it matters for households
The scheme is funded through energy bills: an allowance for it has been included by Ofgem in the default tariff cap, the price cap, from April 2023 onwards1. For a household, the practical effect is that eligibility for insulation and glazing grants now turns on a combination of EPC rating and Council Tax band, rather than the previous ECO+ proposals. Private rented households rated D or E are eligible in both groups, while those rated F or G are excluded unless exempt from the relevant regulations; private rented households in the general group can only receive higher-cost insulation measures, excluding loft or cavity wall insulation1. In Scotland and Wales, low-income off-gas rural households receive a 20 per cent uplift to each measure's score, while in England the Home Upgrade Grant covers that group and has ringfenced 60 per cent of funding for rural local authorities1. The scheme focuses solely on insulation and heating controls, with no requirement to improve a property by a set number of EPC bands1. How far any single home can improve its energy independence therefore depends on which measure it receives and its starting rating.
What happens next
The government said it will lay affirmative regulations in Parliament, expected to come into force later in 2023, and that the policy is subject to Parliamentary approval1. A self-referral service is planned for summer 2023 as part of GOV.UK1. Ofgem will publish separate guidance for local authorities, the devolved administrations and suppliers, and the government said it will publish the Final Impact Assessment in spring 20231. Suppliers may begin delivering measures ahead of the legislation coming into force from the date of publication1.