Is the Free Boiler Scheme Really Free? Breaking Down the Costs and Funding

Is the Free Boiler Scheme Really Free? Breaking Down the Costs and Funding

What Is the Free Boiler Scheme?

The Free Boiler Scheme is part of the UK Government’s broader energy-efficiency strategy, especially under the Energy Company Obligation (ECO4) and the Boiler Upgrade Scheme. It’s designed to help low-income and vulnerable households replace old, inefficient, or broken boilers with new energy-efficient models.

Under the scheme, many eligible households can get:

• A brand new A-rated boiler

• Free installation by approved professionals

• Heating controls and safety checks

Some residents in regions such as Wales may also qualify for region-specific support.

Who Pays for the Scheme?

Despite being called “free,” the funding doesn’t magically appear. Here’s how it works:

• Energy companies are legally obligated (via the ECO4 scheme) to reduce carbon emissions and help low-income households.

• These companies fund the boiler installations for eligible households.

• The cost is indirectly spread across energy customers' bills in the form of a green levy — meaning everyone contributes a small amount.

So while applicants don’t pay directly, the scheme is ultimately funded by a collective effort through utility providers.

Who’s Eligible for a Free Boiler?

Eligibility is determined by a combination of property type, existing boiler condition, and household circumstances. Generally, you may qualify if:

• Your current boiler is non-condensing, old, or faulty.

• You receive a qualifying benefit, such as Universal Credit, Pension Credit, or Child Tax Credit.

• Your home has a low Energy Performance Certificate (EPC) rating — typically E, F, or G.

• You’re a homeowner (or a tenant with landlord permission).

• You meet Local Authority Flexible Eligibility (LA Flex) criteria, which may cover low-income households not on benefits but with health conditions or high energy bills.

For a complete breakdown, check out this article on what boiler grants are and how to qualify in 2025.

What’s Actually Covered — and What’s Not?

Here’s where the word "free" becomes more complex. While many applicants receive full funding, others may encounter partial costs depending on their home setup and funding availability.

Typically Covered:

• Supply of an A-rated boiler

• Full professional installation

• Basic heating controls (e.g. thermostats, timers)

• Disposal of the old boiler

• Any safety testing required

⚠️ Not Always Covered:

• Extensive pipework or system upgrades

• Asbestos removal (if found during assessment)

• Conversions (e.g. back boiler to combi systems)

• Wall removals or major plumbing changes

In some cases, homeowners may be asked for a “top-up fee” — usually between £100–£500 — if the grant funding doesn’t cover all necessary work. However, most people qualifying under strict criteria won’t need to pay anything.

You can also apply directly for a boiler replacement grant to check your eligibility and get a clearer idea of what’s covered.

Step-by-Step: How the Scheme Works

If you’re thinking of applying, here’s how the process usually flows:

1. Initial Application:
   Apply online through a trusted installer or provider. You'll answer some basic questions about your household, income, and current heating system.

2. Survey Appointment:
   A qualified assessor visits your property to carry out a technical survey. They’ll check your current boiler, insulation levels, and energy rating.

3. Funding Decision:
   If you qualify, you’ll be informed whether your installation will be fully funded or whether a contribution may be required based on specific circumstances.

4. Installation Day:
   Certified engineers complete the boiler replacement — often within a day.

5. Aftercare & Certification:
   You’ll receive documentation confirming compliance with safety and energy efficiency regulations.

What Are the Benefits?

Even if the scheme isn't entirely cost-free in all situations, it still offers significant advantages:

• Lower energy bills — new boilers are up to 90% efficient

• Enhanced home comfort

• Reduced carbon footprint

• Increased property value

• Improved safety — especially when replacing outdated or faulty systems

According to EDF Energy, upgrading to a modern boiler can save up to £300 annually in energy bills, depending on your current setup.

Is It Worth It?

If you meet the eligibility criteria, applying for the scheme is a smart financial and environmental decision. While some applicants may need to cover minor expenses, the vast majority benefit from substantial savings on equipment and labour.

What makes it even more appealing is the added insulation or ventilation upgrades that may be required by funding bodies — making your home even more energy-efficient as part of a whole-house improvement.