As you get older and find yourself on a fixed or limited income, an unplanned expense such as replacing your boiler could have disastrous consequences for your budget. Knowing that there is help available in the form of discounts, payment schemes or boiler grants for pensioners can make it easier to pay for an essential item like a boiler and will take away some of the stress associated with this kind of purchase.
Energy Company Obligation (ECO) replaces Warm Front
Those on low incomes and pensioners were previously able to take advantage of the Warm Front scheme which offered replacement boiler grants of up to £3,000 to pay for new boilers. This scheme has now ended.
The government now has a new scheme known as the Energy Company Obligation (ECO) which requires energy companies to make a contribution toward energy saving measures for their customers. In the past other similar schemes have focused on insulation and led to a number of deals including free insulation especially for those on low incomes. This commitment is now available for pensioners who need a new boiler. It can be used in conjunction with the Green Deal to subsidise the cost of your boiler.
The Green Deal is a loan which covers the costs of these types of home improvements, such as the cost of boilers which are replacements, but is usually only available if the improvement will pay for itself in reduced energy bills. The ECO grant can be used in circumstances where the cost of replacement boilers is higher than the improvement on your energy costs as a result, so you must take time to understand how to choose a boiler and other relevant factors.
Who can get a free boiler grant?
- Those receiving pension credit qualify automatically for a boiler grant
- Working tax credits and over 60 years old
- Your boiler must also be more than 10 years old
Even if you don’t receive pension credit, you could still qualify if you receive other types of benefits such as income support, job seekers allowance, working tax credit (if you are aged over 60), pension premium or a disability allowance. Your income and other circumstances will also be taken into account.