UK energy supplier E.ON has pledged to knock £100 off energy bills as well as installing free home insulation for those on a low income, or claiming Pension Credit. The new scheme, launched this week, is open to anyone who fits these criteria – regardless of whether they are an E.ON customer.

E.ON’s offer, which includes the installation of free loft and cavity wall insulation, is open to anyone on an income of less than £16,190 and in receipt of Child Tax Credit, or claiming Pension Credit. The company estimates that over 700,000 UK households could benefit.

According to E.ON’s calculations, installing cavity wall and loft insulation can reduce your heating bills by as much as £390 a year (based on a 1940s three bed semi-detached home with a 10 year old gas boiler and a gas price of 3.73p/kWh). However, despite the evident benefits, a survey conducted by OnePoll in August 2011 showed that over half (57 percent) of the 2,000 UK residents questioned had no idea that such savings are possible.

Nigel Dewbery, from E.ON’s Energy Efficiency Team, said: “We're committed to helping the UK get energy fit, and this new offer allows us to reach some of the most vulnerable people in society with the three-fold benefit of free insulation, lower energy bills, plus a cheque for £100 to offer help in paying energy bills.”

“We hope to be inundated with requests from people wanting to take us up on this unique offer,” he continued.

Commenting on this news, Which? Energy Campaigns Manager Pete Moorey said: “Our affordable energy campaign has been calling on energy companies to do more to get insulation out to hard-pressed energy customers this winter, so this scheme must be welcomed.

“The offer of an extra £100 on top of free insulation will make this a particularly attractive deal for those people who qualify.”

The E.ON insulation deal is subject to a survey of the property to be insulated meaning that not all homes will be eligible. Exclusions include flats and maisonettes, housing association or council tenants and homes which already have more than 160mm of loft insulation.

E.ON estimates that once an application is approved insulation will be installed within three months. The £100 cheque will be issued within two months of installation.

All of the Big 6 energy suppliers are obliged to help reduce the amount of C02 emitted by households under a Government-backed scheme called the Carbon Emissions Reduction Target (CERT). 

As well as free or cheap insulation, which makes homes more energy efficient, many low income households are also eligible for a £120 payment – called Warm Home Discount – to help with energy bills.