What Is ECO4 FLEX?
Local Authority FLEX is a referral system designed for households that may be experiencing fuel poverty but do not meet the eligibility criteria under ECO4.
Flexible eligibility empowers Local Authorities to refer private tenure households to energy suppliers and installers if they are deemed to have low income, be fuel poor, or vulnerable to the effects of living in a cold house.
To qualify, your Local Authority must be participating in ECO4 Flex.
It’s the responsibility of the installer to ascertain which scheme is appropriate for the household.
There are 4 different routes through which the household can be referred to receive FLEX funding, as detailed below.
Great British Insulation Scheme and ECO4 Local Authority Administration Guidance Read More
FLEX Route 1 – Household Income
Household Income: Households with a gross annual income of less than £31,000 (including overtime payments and interest earned on savings) qualify. This cap applies regardless of the property size, composition, or region and encompasses all sources of income, including both means-tested and non-means-tested benefits.
This income threshold considers the combined earnings of every individual aged 18 years or older residing at the address, including those receiving income from various sources such as lodgers and elderly relatives.
FLEX Route 2 – Proxy Targeting
Proxy Targeting Households that meet at least two of the following proxies. Proxies 1 & 3 cannot be used in combination with each other. Proxy 7 cannot be used in combination with proxy 5 or proxy 6.
Proxy 1
Homes in England located in Lower-layer Super Output Area (LSOA) 1-3 on the English Indices of Deprivation 2019, homes in Wales situated in LSOA 1-3 on the Welsh Index of Multiple Deprivation 2019, or homes in Scotland within “data zone” 1-3 on the Scottish Index of Multiple Deprivation 2020.
Proxy 2
A person living at the premises is entitled to a Council Tax reduction on the grounds of low-income.
Proxy 3
A person residing at the premises is deemed vulnerable to the cold according to Recommendation 2 of the National Institute for Health and Care Excellence (NICE) Guidance NG6, for a reason other than their lowincome 21.
Proxy 4
A child living at the premises is eligible for free school meals, due to low-income 22
Proxy 5
A person residing at the premises is supported by a scheme established by the Local Authority/District Authority (LA/DA), which is named and described within their Statement of Intent.
Note: Local Authorities wishing to utilize this proxy must specify the name of the LA-run scheme they intend to use, along with providing a brief description of how the scheme assists householders living on a low income and are vulnerable to the cold as per NICE Guideline NG6.
Proxy 6
A person residing at the premises has been referred to the Local Authority/District Authority (LA/DA) for assistance by their energy supplier, Citizens Advice, or Citizens Advice Scotland. This referral is made because the individual has been identified by the referrer as struggling to afford their gas or electricity bills.
Proxy 7
Households identified through energy supplier debt data. This pathway allows obligated suppliers to utilize their own debt data to identify either households without pre-payment meters (non-PPM) or households with pre-payment meters (PPM).
a) Non-PPM customers:
These are customers who have been in debt for more than 13 weeks ending with the day on which the declaration is made and are in a debt repayment plan with their energy supplier or repaying their fuel debt through 3rd party deductions.
b) PPM customers:
Suppliers may also identify PPM households who:
- Have either self-disconnected or received supplier Discretionary/Friendly credit within the last 13 weeks ending with the day on which the declaration is made; or
- Are in a debt repayment plan with their energy supplier; or
- Repaying their fuel debt through 3rd party deductions.
FLEX Route 3 – NHS Referrals
Households referred to the LA/DA as housing a person suffering from a severe or long-term ill-health condition which is adversely affected by living in a cold home.
The person’s severe or long-term health condition must be due to:
- A cardiovascular condition,
- A respiratory disease,
- Limited mobility, or
- Immunosuppression. The LA/DA must complete a declaration certifying that it has received a referral from one of the following:
- A person registered in the General Practitioner (GP) Register,
- A Scottish Health Board,
- A Welsh Health Board,
- An NHS Foundation Trust, or
- An NHS Trust.
FLEX Route 4 – Bespoke Targeting
Route 4 is exclusively for ECO4 Flex and does not apply to the Great British Insulation Scheme Flex. Suppliers and Local Authorities can submit a proposal via the Route 4 Bespoke Targeting Application form to the Department for Energy Security and Net Zero at beisecoteam@beis.gov.uk. This applies when they have identified new methods to identify low-income and vulnerable households. The application must receive approval from the Secretary of State for the Department for Energy Security and Net Zero or their representative.
Applications must demonstrate several factors, aside from residing in an owner-occupied property rated D, E, F, or G on the SAP band scale, or for homes in the private rented sector, rated E, F, or G. Applicants must also provide evidence that the proposed methodology is more effective at identifying households in fuel poverty compared to the criteria offered under Routes 1 and 2.
Applications should also demonstrate that assistance reaches the majority of households who are not in receipt of any means tested benefits that fall within the help to heat group benefits:
a) over 50% of the premises that meet the criteria are not occupied by a member of the help to heat group, and that
i) at least 75% of the premises that meet the criteria are owner occupied premises occupied by at least one person living in fuel poverty; or
ii) at least 90% of the premises that meet the criteria are private rented premises occupied by at least one person living in fuel poverty.
Owner-occupier D, E, F, and G and private rented sector E, F, and G properties may qualify for ECO4 Flex route 4, providing that the LA is consulted by the supplier prior to completed installation, and that their supporting supplier or LA application has been approved by the Secretary of State, (SoS).
Once the Department for Energy Security and Net Zero has approved an application a reference number will be provided, and this should be notified to Ofgem for all relevant projects. The 10% uplift is only awarded subject to all criteria and minimum requirement rules being met.