Industry has welcomed the ECO extension after fears it would be scrapped altogether.

Following up on the annual Budget in March, George Osborne announced that government will roll back green levies – including reducing the cost of the Energy Companies Obligation (ECO) – which will save people around £50 off their energy bills.

Ideal Boilers' marketing director James Parkinson said: “It's good the government is taking action to tackle rising fuel prices, and we welcome the news that the Energy Company Obligation has been extended.”

“The industry was fearful that the government would scrap ECO, which helps people in fuel poverty who need energy-efficient improvements the most. Instead the scheme has been changed so the energy companies now have until 2017 to meet their obligation.”

“The priority for us is to see stable business opportunities for our installer customers, and people managing their energy bills and living comfortably. Extending ECO provides this stability, as the scheme will be helping those living in fuel poverty for a number of years.”

“In the UK there are far too many people struggling to pay their energy bills, and it’s something the industry needs to work hard to sort out. So it’s good to see £50 shaved off energy bills, while the future of the ECO is assured.”