The free boiler scheme was launched in January 2013 to help improve the energy efficiency of UK homes, reduce the energy consumption and to provide grants to low-income households.
The scheme is part of ECO (Energy Company Obligation) which was passed in parliament in 2012 and this will run until 2018 (but this could change and be extended). It has a total budget of over £1 billion each year and is primarily funded by the big six utility companies.
ECO is now made up of 2 obligations Carbon Efficiency Reduction Obligation and Home Heating Carbon Reduction Obligation or more commonly called the Affordable Warmth Scheme. Funding for the free boiler scheme comes under the Affordable Warmth Scheme.