Government says boiler scrappage scheme will safeguard domestic heating industry

The Boiler Scrappage Scheme, which was first unveiled in the Chancellor's Pre Budget Report, means that up to 125,000 households in England with working ‘G-rated’ boilers can from today apply through the Energy Saving Trust for a voucher that will entitle them to £400 off the price of a new, modern A-rated boiler or a renewable heating system, such as a biomass boiler or a heat pump.

The scheme will work in a similar way to the Car Scrappage Scheme, first launched to bolster the beleaguered UK car manufacturing industry and encourage car owners to upgrade to greener vehicles. However, it is expected to be more effective in helping the the UK economic recovery than the Car Scrappage Scheme has been, because UK businesses will benefit rather than foreign-owned car manufacturers. The Government said it would help sustain work for 130,000 installers and over 25 UK-based boiler manufacturers.

In addition to helping the UK economy, the Government said the scheme would cut household energy bills by between £200 to £235 a year and save in the region of 140,000 tonnes of CO2 per year – equivalent to taking 45,000 cars off the road.

Officially launching the scheme today, Prime Minister Gordon Brown, said: “Today’s announcement will slash household energy bills and carbon emissions while providing an important boost for the British heating industry. The Government's new scrappage scheme will help to secure 250,000 jobs across the tens of thousands of small and medium businesses involved in boiler manufacture, sales and installation that form a vital component of Britain’s low carbon economy. The scheme shows how this Government continues to invest in the British industries and jobs of the future.”

The Heating and Hotwater Industry Council (HHIC), the UK domestic heating and hot water industry membership organisation, has welcomed the scheme saying it believes that the new scheme will bring new life into the domestic heating industry. It sees one of the main benefits of the consumer voucher scheme is its simplicity and availability to all manufacturers, merchants and installers, as it can be up and running within a few weeks.

Roger Webb, from the HHIC, said:”HHIC strongly welcomes the initiative to replace old inefficient boilers. We have been campaigning diligently for a long time and given the importance of meeting the Government's emission targets this will make a significant difference. Householders are naturally reluctant to replace a working boiler even though it is wasteful on energy and so an incentive to do this is vital. We are delighted that the Government is giving the green light to enable householders to replace an old inefficient boiler with a new energy efficient model and by doing so recognising that a new boiler can really improve energy efficiency."