Boiler Scrappage Scheme

Boiler scrappage scheme Pre Budget Report

The following is the extract of the Pre Budget Report update to Parliament on the proposed terms of the Boiler scrappage scheme and is reproduced from the UK Parliament library publication.

Introduction

In the Pre-Budget Report, 9 December 2009, 1 the Chancellor announced the introduction of a boiler scrappage scheme, properly called the Greener Boiler Incentive scheme.

The Pre-Budget Report states:
Installing an efficient heating system can be another cost-effective way to cut household energy bills and carbon emissions, as domestic heating accounts for 13 per cent of UK greenhouse gas emissions. Replacing an older boiler with the latest efficient models can reduce a household’s energy bill by around £230 a year. The PreBudget Report announces a £400 incentive to help up to 125,000 households upgrade their boiler, available to those who buy a new boiler or renewable heat unit to replace a working G-rated boiler. The Government will work with industry to launch the scheme at the earliest opportunity in 2010. 2

In his statement to the House of Commons, the Chancellor explained that inefficient domestic boilers add over 1 tonne of carbon to the atmosphere each year. He added that the new boiler incentive would “build on the successful car scrappage scheme.”

These statements indicate that the scheme is likely to operate like the car scrappage scheme.

The Pre-Budget Report failed to provide details of how individuals could apply, when the scheme would start, or whether it will be extended once the budget allocation of £50m runs out.

It appeared that residential households and privately-rented homes would be the main beneficiaries and that it would not be means-tested. It was reported that consultations were underway with the boiler industry.

Initiation of the scheme

On 5 January 2010 the Government initiated the boiler scrappage scheme for England. Decisions on the implementation of similar schemes in Scotland, Wales and Northern Ireland are the responsibility of their Governments and Assemblies.

A press notice set out further details about the scheme:

The Government’s Boiler Scrappage Scheme has already triggered some companies to complement, and in some cases match, the offer and it is expected others will follow suit. This will extend the scheme to many more householders and safeguard work for the heating industry. People are advised to shop around to find the best deal which suits them before applying to the Scheme.

The Government’s Boiler Scrappage Scheme will:
-Help sustain work for the 130,000 installers and over 25 UK-based boiler manufacturers throughout the economic recovery.
-Save money. A household’s energy bill could be cut by between £200 to £235 a year.
-Save carbon. Replacing 125,000 G rated boilers should save in the region of 140,000tCO2 per year, equivalent to taking 45,000 cars off the road.

How to apply

From 5 January 2010 householders in England with G-rated boilers, or worse, can apply through the Energy Savings Trust for a voucher which will entitle them to £400 off the price of a new, modern, A-rated boiler or a renewable heating system like a biomass boiler or a heat pump:

To apply online visit the Energy Saving Trust (EST) website.

For constituents not online, further information can be sought from the EST helpline, the “Act on CO2 advice line” x0800 512 012. To avoid being held in a queue, it is wise to telephone early in the day just after 9am.

It is a good idea to apply as soon as soon as possible because the scheme is likely to be oversubscribed as there are thought to be more than 4m boilers in the UK that would qualify.

You can find out the efficiency rating of your boiler by looking at its label, visiting www.sedbuk com, which has a database of information on most boilers in the UK, or as part of the application process online.

The cost of a new energy-efficient boiler is likely to be about £2,000 or more. Installation costs would be additional. Some properties may need significant extra pipe work and radiator improvements which could increase the usual costs significantly. The EST online application webpage gives more information:

Who is eligible for the scheme?

The scheme is open to 125,000 householders in England living in an owned or privately rented home.

Please note:
i) If you are a householder (including tenants) under 60 you can only apply for the scheme if the boiler you are scrapping is in working order and is the main boiler used to heat the home.
ii) If you are a householder (including tenants) and 60 or over you can apply for the scheme regardless of whether the boiler you are scrapping is in working order. However, it still needs to be the main boiler used to heat the home.

Only householders and landlords who privately own and rent dwellings are eligible to apply for a voucher. Boiler installers and manufacturers, local authority registered social landlords, and housing associations are not eligible to apply

Why isn’t this scheme running in Wales, Scotland and Northern Ireland?

The devolution of power to Wales, Scotland and Northern Ireland means that their assemblies and governments will take decisions on whether they want similar schemes.

How can you tell if your boiler is G-rated?

A good quick test for gas boilers is to see if it has a permanent pilot light -if it has then it is very likely to be a G-rated boiler. If it is gas fired and over fifteen years old it is likely to be eligible. If it is oil fired and over twenty five years old, it is likely to be eligible.

For a better idea, why not see if your boiler make and model is listed as G-rated or worse by looking at the boiler efficiency database.

Alternatively, you can ask your nominated installer to assist you in determining whether your boiler is eligible.

Want to register an interest in the boiler scrappage scheme?

If you believe that your home has a G-rated or worse boiler and wish to register an interest in the scheme to receive a £400 cashback voucher towards the cost of upgrading to an A-rated boiler, then arrange for your nominated installer to visit, provide you with a quote and have the following information to hand
i) Your full name.
ii) The address of the property you wish to claim the voucher for.
iii) The make and name of the boiler being scrapped.
iv) The company name, address and contact details of the installer carrying out the work.
v) The type of replacement boiler to be installed e.g. gas, biomass.
vi) Confirmation that you have received a quote or visit from the installer to carry out the work.

Once you have this information please click here or alternatively call our ACT ON CO2 advice line on 0800 512 012.

This note sets out information about the boiler scrappage scheme (Greener Boiler Incentive) announced in the Pre-Budget Report 9 December 2009, and how to apply from 5 January 2010 for those living in England.

This information is provided to Members of Parliament in support of their parliamentary duties and is not intended to address the specific circumstances of any particular individual. It should not be relied upon as being up to date; the law or policies may have changed since it was last updated; and it should not be relied upon as legal or professional advice or as a substitute for it. A suitably qualified professional should be consulted if specific advice or information is required. This information is provided subject to our general terms and conditions which are available online or may be provided on request in hard copy. Authors are available to discuss the content of this briefing with Members and their staff, but not with the general public.

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