Ivan: 0:04

Hello and welcome once more to the Bench Report, where we discuss recent debates from the benches of the UK Parliament. A new topic every episode. You're listening to Amy and Ivan.

Amy: 0:14

Today we're looking at the huge range of funding schemes available for um for domestic energy efficiency, things like heating and even power generation across the UK.

Ivan: 0:24

And it's a real mix, isn't it?

Amy: 0:25

It is. You have direct government grants, but also these, you know, legal obligations placed on the big energy suppliers. It's all aimed at helping eligible households.

Ivan: 0:34

Okay, so let's get straight to it. The most striking thing we found isn't actually how much money is available, it's how badly some of it is being spent. We're talking about, well, frankly, shocking installation failure rates.

Amy: 0:45

Which is a crucial point. Let's start with the big obligation schemes because that gives the context. The main one is the energy company obligation, or ECO4. That one runs until March 2026.

Ivan: 0:57

And its purpose is basically twofold: it's tackling fuel poverty and at the same time cutting carbon emissions.

Amy: 1:03

Exactly. It forces large suppliers to deliver and pay for measures. Insulation, new sheeting systems, even solar panels in some cases.

Ivan: 1:11

And who is eligible for this?

Amy: 1:13

It's primarily aimed at low-income households. So you'd need to be receiving certain benefits like universal credit or pension guarantee credit. And there's a property requirement.

Ivan: 1:23

Ah, so it's not just about income.

Amy: 1:24

Not at all. Homeowners need an energy performance certificate, an EPC, of D or below. For private renters, the bar is a bit lower at E or below. It's really targeting the least efficient homes.

Ivan: 1:37

Now, alongside that, there's the Great British Insulation Scheme or GBIS. How does that differ?

Amy: 1:43

GBIS sort of complements ECO4. It widens the net to include what's called a general group. These are households that are still in inefficient homes, EPC, D to G, but are in the lower council tax bans.

Ivan: 1:54

So not just those on benefits, and I understand it's more focused.

Amy: 1:57

Much more. While ECO4 can be a whole house retrofit, GBIS usually focuses on a single high impact measure. Think loft or cavity wall installation.

Ivan: 2:06

So that covers the obligations. Let's shift to the direct grants, starting with the boiler upgrade scheme, the BUS, for England and Wales. This is about upfront cash, isn't it?

Amy: 2:16

It is. It's for renewable heating systems. So if you live in a rural off-gas area, you could get up to 5,000 pounds for a biomass boiler.

Ivan: 2:24

And for heat pumps.

Amy: 2:26

For an air or ground source heat pump, the grant is even larger. It's up to 7,500 pounds, a really substantial contribution to the cost.

Ivan: 2:34

There's also a new scheme in England, the Warm Homes, local grant.

Amy: 2:38

That's right. It replaces the old home upgrade grant. It provides fully funded energy upgrades and low-carbon heating for low-income privately owned homes with those low EPC ratings D to G.

Ivan: 2:51

But there's a really interesting detail in there for private landlords.

Amy: 2:54

There is. A landlord gets their first property fully funded under the scheme, but for any other properties after that, they have to contribute 50% of the cost themselves.

Ivan: 3:03

So the system seems designed to stop big investors from using public money to just retrofit their entire portfolios.

Amy: 3:10

That appears to be the intent. And just quickly, for anyone who's already generating their own power, there's the smart export guarantee or SEG.

Ivan: 3:17

This isn't a grant, though. It's an obligation on suppliers to pay you for any excess renewable electricity you send back to the grid.

Amy: 3:24

And the key thing here is to shop around. The law says the payment just has to be more than zero, so tariffs vary wildly.

Ivan: 3:31

And before we get to the quality issues, it's worth a quick mention that Scotland, Wales, and Northern Ireland all have their own schemes. Warmer homes, Scotland, the NES scheme in Wales.

Amy: 3:42

And the affordable warmth scheme in Northern Ireland. So there is support available right across the UK.

Ivan: 3:47

Now let's circle back to that central problem: installation quality. Concerns were flagged in early 2025 about installations under ECO4 and GBIS causing damp and mold.

Amy: 3:59

And then an audit was published in November 2025. The results were um, well, they were pretty damning. Just how bad was it? For external wall insulation, a massive 92% of audited installations had at least one major technical noncompliance. 92.

Ivan: 4:14

That is an unbelievable figure. What about internal insulation?

Amy: 4:18

That was better, but still very poor. 27% of internal wall insulation installs had a major issue. And worse, some of these created actual health and safety risks for the residents.

Ivan: 4:29

So if you're affected by something like this, what's the route for getting it fixed?

Amy: 4:34

The consumer protection route is, first, through Trustmark, the scheme operator. If that doesn't work, you escalate it to the ombudsman. And that really brings us to the final thought. When you see numbers like 92% of external wall installation failing in audit, you have to ask a question. Perhaps the biggest policy challenge isn't just about finding the money for these STEAMs. Maybe it's about building a system with robust oversight and quality standards that can actually guarantee every single installation is done right.

Ivan: 5:04

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