Funding Available from GOV.UK

What is the Carbon Saving Obligation?

The Carbon Saving Obligation is a scheme that was introduced by the government with ECO4 funding. Its aim is to help provide low-income households with funding to cover the cost of hard-to-treat cavity wall insulation and solid walls. The Carbon Saving Obligation scheme is also sometimes referred to as the Carbon Emissions Reduction Obligation (CERO) as it has evolved since 2018.

Various energy companies have signed up for the scheme to help vulnerable, low-income households with fuel poverty as well as to do their part in helping to reduce carbon emissions across the country. The energy efficiency measures that could be installed by the energy companies (like energy saving heating systems), can help those with high heating bills to reduce their costs and function more effectively than their previous heating to ensure their homes are kept suitably warm, especially in the winter months.

The Carbon Saving Community Obligation (CSCO)

There is a community aspect to the Carbon Saving Obligation scheme because it is designed to help lower the entire UK’s carbon footprint in the green deal. The funding offers several different types of insulation measures mainly for low-income families including:

By providing these free grants for low-income families and other eligible households, whether they are homeowners or privately renting tenants, the government’s ECO4 plan and Carbon Saving Obligation can reduce our carbon footprint for a brighter future for our planet. Also, at this difficult time of rising living costs, the money that can be saved on energy bills for homes with these new efficient measures will be invaluable.

carbon saving obligation scheme

Are you eligible for funding through the Carbon Saving Obligation?

Due to the Carbon Saving Obligation being a subsection of the ECO (Energy Company Obligation) scheme, if you already meet the criteria and are eligible for ECO4, you will be accepted for this funding. The eligibility criteria for grants include:

  • Owning your own home or being a privately renting tenant
  • Having a home that emits a large amount of carbon and is inefficient to heat
  • Have a low income and/or be receiving an income-related benefit from the government

What benefits are eligible for funding?

  • Child Tax Credits (CTC)
  • Housing Benefit (new under ECO4)
  • Income-based Jobseekers Allowance (JSA)
  • Income-related Employment Support Allowance (ESA)
  • Income Support (IS)
  • Child Benefits
  • Pension Credit Guarantee Credit
  • Pension Credit Savings Credit (new under ECO4)
  • Universal Credit (UC)
  • Warm Home Discount Scheme Rebate
  • Working Tax Credit (WTC)

Can you still apply for funding even if you weren’t part of the ECO3 scheme?

If you meet the criteria you can apply for ECO at any point the scheme is in. Currently, we are in the ECO4 phase of the carbon saving obligation and carbon emissions reduction obligation that replaced ECO3 which closed at the end of March 2022. Even if you were not aware of this green deal scheme before, you don’t have to miss out. If you qualify for funding you can apply when you want before the closing date of this phase of the scheme.

Why should you apply for Carbon Saving Obligation funding?

A lot of the housing stock in the UK is fairly old, meaning the cavity walls or solid walls are more difficult to treat, or loft insulation can no longer hold up to the department of energy district heating systems’ standard. The funding from the government through the Carbon Saving Obligation is specifically targeted at properties with this issue. If your home has this problem, below are just a few reasons why you should check if you are entitled to a free insulation grant:

  • More energy efficient
  • Less expensive to keep your home heated
  • Less expensive to insulate

Contact us today to see if you are eligible for funding through the Carbon Saving Obligation and ECO4. 

In this Article

Picture of Oliver Creevy

Oliver Creevy

Ollie has been writing content in the home improvement sector for over 3 years and over the last 18 months has really specialised in Government grants, researching the different funding available to UK citizens. Ollie is well placed to provide households with access to the right advice when it comes to improving the energy efficiency of your home. With knowledge of the various grant schemes past and present, including Boiler Upgrade Scheme, ECO4, LAD Scheme, Green Homes Grant and more, his knowledge will be invaluable to those looking for ways to reduce their energy bills and reduce their carbon footprint through eco home improvement measures such as solar panels, insulation & heat pumps.

Free Funding to Install Home Insulation