By Sknews 
Income rules determine who receives help for replacing old boilers or installing low-carbon heating. This article explains in plain English how these income thresholds are calculated and why they’re important.
This article uses official statistics and recent guidelines to ensure that you are getting the most accurate information. When possible, I use government and industry resources.
What the schemes are and why income matters
The Boiler Upgrading Scheme (BUS) and ECO4 (Energy Company Obligation) are the two most common grants that people have heard of. ECO4 funds energy efficiency upgrades and targets households with low incomes and vulnerability.
The boiler upgrade scheme provides capital grants to heat pumps and biomass boilers in order to promote low-carbon heating. Both schemes are designed to help those who need it most. Income is one of the key tests.
Two ways are employed to determine income thresholds. First, they are used to identify households with low incomes that should be given priority.
They can also be combined with rules based on benefits (such as receiving certain welfare payments) to confirm your eligibility. This means that a householder’s household income or taxable income can directly affect whether they qualify for a grant.
Typical income thresholds you will see
The thresholds are slightly different for each installer, scheme, and guide. Recent guides often use PS23,000 or PS31,000 for the household income threshold, depending on local flexibility rules and if additional circumstances are applicable.
These figures are not universal laws, but they serve as benchmarks that suppliers and installers use when assessing claims. Check the scheme page, or with your installer, to find out the exact local threshold.
Why a small change in income can change eligibility
Income tests often have sharp thresholds. A household may be deemed “ineligible” if it earns slightly more than the limit. A small income difference could mean that two homes with similar needs are treated differently.
These thresholds are used by policymakers to allocate limited funds towards the most vulnerable. Some installers and local authorities use discretionary rules in order to avoid the worst effects. However, this is not always guaranteed.
The income is often considered along with other factors, such as the age of the boiler and the energy performance certificate rating (EPC) of the property.
For ECO4, homes with low EPC scores and those on benefits are usually given priority. Even if you earn more than a certain threshold, receiving certain benefits and living in an inefficient house could make you eligible.
Who is most likely to benefit from income-based rules
The schemes are designed to assist people who may be at risk of fuel insecurity. Fuel poverty is a problem for millions of UK households. Official figures show that one in ten English households was fuel poor over the past few years.
Many households are forced to seek help because of rising energy costs and poor home efficiency. Income rules concentrate assistance where the problems are greatest.
Practical impact: an example
Imagine two homes that have the same boiler and EPC rating. The household A receives a qualifying allowance and a combined income totalling £22,000. Household B earns £24,000 but does not receive a qualifying benefit.
According to typical thresholds, Household A could receive a free replacement or a full grant. Household B may be told that they are ineligible or receive a smaller subsidy.
This difference could be crucial, as a new boiler or heat pump can reduce bills by hundreds per year.
Some schemes offer a “local authority flexibility” which allows councils to expand eligibility within their own area.
This flexibility can be useful for households such as Household B if local planners determine that the need is great. Ask your council or ECO4-registered installers if LA-Flex is used in your area.
How installers and partners help with income checks
Installers and a trusted partner act as a bridge between the applicant and the funding. They check eligibility, provide advice on the evidence required (payslips and benefit letters, EPCs) and submit applications to local authority or supplier funds.
A partner with experience can help make the process easier and quicker. Berks Insulation, for example, is a trusted partner. They can help households with eligibility checks and paperwork and offer free heating upgrades through the Eco4 scheme.
Berks Insulation, a reputable company that installs boilers and other heating systems, can help you determine if you qualify for the “Free Boiler Scheme” or ECO4 grants. They can also guide you through the entire process, from the survey to the installation.
Evidence and statistics that show the need
Official fuel poverty statistics show that millions of households are still struggling to heat their homes. Recent official estimates place the number of fuel-poor households in England at around 2.7 million.
This scale is why income thresholds are used: funds are limited and need to be directed where they will have the greatest impact on reducing hardship.
According to independent research and reports from charities, many households spend a large portion of their incomes on energy. This reinforces the need for targeted grants.
Steps you can take if you think you may qualify
First, check benefit status. Often, being on certain benefits makes it easier to pass the eligibility test. Get a quick energy check on your property. An EPC that is below band D can often help you get a grant. Contact an ECO4 installer or local council for LA-Flex regulations in your area.
Ask for assistance in gathering documents. Installers who are trusted can confirm if your household income falls below a local threshold, or if other routes are applicable. Visit the GOV.UK official pages for details on the Boiler Upgrade Scheme or the ECO4 Guidance.
Common questions and clear answers
Can I apply for a grant if I am a tenant? In many cases, tenants are eligible for assistance, but the landlord’s permission is required. Eligibility checks will still be conducted. Will my slightly higher income always prevent me from getting a loan? Not always.
Local flex rules and benefit receipt can affect outcomes. Does the Boiler Upgrading Scheme have the same effect as ECO4? No. BUS is a fixed-grant program that supports low-carbon heating (heat pumps/biomass).
ECO4 focuses primarily on energy efficiency and heating for low-income households. Check the official websites and talk to an installer you trust.
Final thoughts
Income thresholds can be a useful tool for focusing limited funds to households who need them the most. It can seem strict, and even a small difference in income can be significant. There are local options, and the discretion of installers can often help.
Work with an official partner and follow their advice to ensure you are in the right position. Berks Insulation, for example, can help you with a personalized service. They will run an eligibility check and assist in the application process for ECO4 grants and other related grants. This includes those available through the Free Boiler Scheme. The right advice could mean the difference between a costly old boiler and a free or heavily subventioned heating upgrade.