The government has published its response to the consultation on the Great British Insulation Scheme, previously consulted on as ECO+, setting out how the scheme will operate from 2023 to 2026 alongside ECO4. The response confirms that in-fill will be implemented as consulted, but without the function enabling blending between ECO4 and the Scheme1.
In-fill allows measures to be installed in a property that has already had work done under another scheme. The government's decision means a home cannot have measures blended across ECO4 and the Great British Insulation Scheme in the way the consultation had envisaged. The response states:
"We have decided to implement the in-fill proposals as consulted, but without the function enabling blending between ECO4 and the Scheme."
The Scheme will target two groups. The general group covers homes with an EPC rating of D to G in Council Tax bands A to D in England and A to E in Scotland and Wales. Eligibility in Wales was expanded from bands A to C as consulted on1. The low-income group broadly mirrors ECO4 eligibility, being households on means tested benefits or living in the least efficient social housing, with an EPC rating of D to G1. At least 20% of each supplier's annual phase target must be delivered to the low-income group1.
| Nation | General group Council Tax bands |
|---|---|
| England | A to D |
| Scotland | A to E |
| Wales | A to E |
The government estimates the Scheme will make around 300,000 homes more energy efficient, primarily through insulation measures such as cavity wall insulation, and that households receiving insulation upgrades will see bills reduce by around £300 to £400 on average per year1. A minimum of 20% of support will go to low-income and vulnerable households1. The Scheme has a £1bn budget, and the response states that a 20% rural off-gas uplift will apply in Scotland and Wales for the low-income group across all measure types1.
The government also decided not to permit Route 4 as an option for GB Insulation Scheme Flex1. A self-referral service is planned for summer 2023 as part of GOV.UK1. Affirmative regulations are expected to be laid in Parliament and to come into force later in 20231.
Why it matters for households
For a household that has already had work under ECO4, the absence of blending means the two schemes cannot be combined on the same property in the way the consultation proposed. In-fill itself remains available as consulted, so a home can still have further measures installed where it qualifies, but the route for mixing funding across the two schemes is not being enabled1.
The Council Tax band and EPC conditions determine which group a home falls into, and therefore what support may be available. Homes in the general group are those in the specified bands with an EPC of D or below, while the low-income group follows ECO4's benefit-based criteria1. The 20% minimum for the low-income group means a set share of each supplier's annual target is reserved for those households1.
The estimated bill reduction of around £300 to £400 a year applies to those receiving insulation upgrades, and the government describes the figure as a range reflecting uncertainty in gas prices for domestic consumers1. The scheme is intended to complement ECO4 and other support, including the Home Upgrade Grant and the Social Housing Decarbonisation Fund1. How the two schemes interact for a specific property has not been reported beyond the decision on blending.
What happens next
The government expects to lay affirmative regulations in Parliament, coming into force later in 2023, and plans to launch a self-referral service on GOV.UK in summer 20231. Suppliers may begin delivering measures ahead of the legislation coming into force from the date the response was published1.
Sources1 cited
- Great British Insulation Scheme (2023-2026) and Amendments to ECO4 regulations: government response, assets.publishing.service.gov.uk