The Great British Insulation Scheme, previously consulted on as ECO+, will apply a 20% rural off-gas uplift in Scotland and Wales for the low-income group across all measure types, the government confirmed in its response to consultation published in March 20231. The scheme runs from 2023 to 2026 and applies in England, Scotland and Wales1.
The uplift is lower than the 35% that applies under ECO4, the current supplier obligation. The government response states the decision in a single line:
"In summary, a 20% rural off-gas uplift will apply in Scotland and Wales for the low-income group within the Scheme across all measure types."
The scheme targets 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. The low-income group covers homes with an EPC rating of D to G that broadly mirror the household eligibility requirements of ECO4, meaning households on means-tested benefits or living in the least efficient social housing1. At least 20% of each supplier's annual phase target must be delivered to the low-income group1.
Eligibility in Wales was widened from Council Tax bands A to C as consulted on to bands A to E, which the government said would "better align the proportion of eligible homes in each nation"1. The government also decided not to permit Route 4 as an option for the scheme's local authority and supplier flex1.
| Element | England | Scotland | Wales |
|---|---|---|---|
| General group Council Tax bands | A to D | A to E | A to E |
| Rural off-gas uplift, low-income group | Not stated | 20% | 20% |
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 fall by around £300 to £400 a year on average1. A minimum of 20% of support through the scheme is to go to low-income and vulnerable households, which the government said amounts to 5.9% of the scheme's £1bn budget, or £59m1.
Why it matters for households
For a rural home off the gas grid, the uplift raises the amount of support a supplier can claim for delivering a measure, which affects what work is worth doing in harder-to-treat properties. At 20% rather than 35%, the incentive to deliver in rural Scotland and Wales is smaller than under ECO4, and the government has not reported a separate figure for rural off-gas homes in England. The uplift applies only to the low-income group, so households qualifying through the general group do not attract it1.
The scheme sits alongside ECO4 and other support, and the differences between nations in Council Tax band eligibility mean two similar homes either side of a border can face different routes into funded insulation. The wider context is set out in Why Home Energy Grants Differ Across the Four Nations and Home Energy in Scotland, Wales and Northern Ireland. For Scotland specifically, the separate Home Energy Scotland rural uplift operates on its own terms.
What happens next
The government said it would lay affirmative regulations in Parliament, expected to come into force later in 2023, and that suppliers could begin delivering measures from the date of the response's publication1. A self-referral service was planned for launch on GOV.UK in summer 20231. The government also said it would not allow acceptance of measures delivered ahead of publication of the response1.
Sources1 cited
- Great British Insulation Scheme (2023-2026) and Amendments to ECO4 regulations: government response, assets.publishing.service.gov.uk