Households with a gross annual income of less than £31,000 are eligible via the ECO4 Route 1. This threshold will apply regardless of the property size, composition, or regional location.
This is reached by combining the gross annual income of all adults aged 18 or older living in the home permanently.
This also includes lodgers and relatives.
The following interpretations of income will be made: Gross annual income is all the money that the members of the household regularly earn and receive before taxes and other deductions, where applicable.
Regular Income Sources #
When applying for ECO4 via route 1 the following income sources are applicable:
- Earnings from employment and self-employment (this includes any furlough payment)
- Pension payments, including State Pension
- Interest earned on savings
- Capital gains from shares
- Dividend payments
- Benefits in Kind (employers benefits)
- Income from owned and rented properties
- Taxable and non-taxable benefits payments (including Child Benefit)
Regular Incomes Not Included #
- Inheritance payments
- Prizes received from premium bonds
- Gifted payments (e.g. Payments from family members)
- 25% tax-free pension lump sum payments
- Student loans or grants
- Transfer of money between personal accounts
- Casual or miscellaneous payments amounting to a total of less than £1,000 per year (e.g. Sale of personal items or chattel)
Evidencing your Income #
Any relevant income sources included in a household’s gross annual income should be evidenced. Suitable evidence types include:
- Tax returns which include self-assessment tax returns
- Payslips
- Pension statements
- Benefit statements
- P60 or P45 documentation
- P11D documentation
- L17 Statement of Earnings
- SA302 Letter
- A contract of employment which displays an annual salary figure
Provide Confirmation #
You will need to provide confirmation for the number of adult residents at the address. Suitable evidence you can use are as follow:
- Council tax letters
- Tenancy agreements
- Mortgage statements
- Electoral register statements
A combination of the following will prove the matching addresses for recipients:
- Utility bills
- Benefit letters
- Financial statements
- HRMC or DWP letters
The above lists are not exhaustive and other evidence types can be used if those listed are not available to you. To put your mind at ease, it is recommended that the evidence given is a combination of different types of documents to corroborate the household’s gross annual income.
A self-declaration given by someone from your household cannot be relied upon as standalone evidence of gross annual income.
Remember that all documentation must be dated no more than 12 months before the day on which the Declaration is signed. The most recently available version of each document should be used, when possible.
If no evidence is available from this period, it is recommended to use the most recent evidence available from before this period.
