Articles for the ‘information’ Category
The Boiler Scrappage Scheme has been very popular with 44% of the vouchers offering money off the cost of a new replacement boiler have been claimed as of the middle of February. A total of 54,758 vouchers that give a cashback of £400 off the cost of replacing an old boiler with a new efficient one have been claimed by the public, with only 70,000 still available before the funds are exausted.
According to the UK government, the scheme is helping many households cut their energy bills, reducing CO2 emissions and supporting thousands of jobs as the boiler installation industry receives a stimulus.
Operating in England, people who own their homes or landlords who rent their homes are eligible for the Boiler Scrappage Scheme, but social landlords, housing associations and boiler installers are not directly eligible.
It is estimated that there are about 3.5 million homes in England with the least efficient types of boiler, rated G on the SEDBUK scale.
The Energy Saving Trust who operate the scheme for the government, said it had received 400,000 calls about the scheme and from these early enquiries approximately 14% of these has translated to those taking up the offer and being issued vouchers.
Geographically the largest take-up has been in the south east of England, where 9,387 vouchers have been issued to homeowners. This was closely followed by the north west (8,186), with the smallest take-up in the north east England (3,412).
There is an opportunity for homeowners who do not qualify, say their boiler is F rated or better as many of the larger energy companies have chosen to match the £400 cut with a £400 discount of their own leading to some attractive boiler installation offers.
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The first Boiler Scrappage Scheme cashback vouchers were due to be issued on January 18th. Yesterday the first vouchers were due to be issued by the Energy Savings Trust to homeowners who had successfully applied for the Scheme when it was announced .
The cashback vouchers provide a refund of £400 against the cost of installation of a modern energy efficient boiler and were targeted to be issued about 10 days after receipt of an application. The cashback vouchers are valid for twelve weeks from the issue date and need to be encashed against a new energy efficient gas boiler, oil or LPG units In addition boilers with a Passive Flue Heat Recovery Device, Micro CHP units or Micro generation Certification Scheme-registered biomass boilers and heat pumps also qualify for the scheme. Solar
Receipt of the voucher is a call to action for the home owner. The limited validity of the vouchers means that upon receipt of the voucher homeowners need to get hold of their selected gas installer to start installation. The installation needs also to proceed at a brisk rate as the £400 discount cannot be claimed until the boiler installation work has been finished and payment has been made in full the full amount to the appointed installer.
To manage the limited fund for this initiative the Energy Savings Trust intends to monitor the validity of the vouchers and If a voucher is not redeemed within the 12 week validity period they will cancel the voucher and reapportion the financial support to a new applicant.
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The potential development of a £4 million Welsh Boiler Scrappage Scheme has moved forward with an announcement by Environment minister Jane Davidson. The budget is being established by the UK Treasury and the Welsh Assembly Cabinet will be able to decide how this money is allocated.
There has been recent comment in Scotland concerning the development of a scheme following the announcement by the Chancellor Alistair Darling of an English Boiler Scrappage Scheme. Communities Minister Alex Neil recently insisted last week that the Scottish Government had not ruled out introducing their own boiler scrappage scheme.
Responding to similar concerns in Wales Mrs Davidson said that the Welsh Assembly Government “is considering introducing a similar scheme in Wales, and we are currently working up a series of proposals taking into consideration the impact on those in fuel poverty, the relative carbon savings and value for money.”
Noting the limited funding she also noted that “If a boiler scrappage scheme is introduced to Wales, there is likely to be more emphasis on targeting fuel poor households.”
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The recent cold weather and economic strains have led to significant interest in the recently launched Boiler Scrappage Scheme. A downside of the enhanced popularity is that the Energy Savings Trust (EST) has declared that the £50m funding in the scheme could be depleted as early as March 2010 due to high visibility of the scheme during the first few days of January since its launch on the 5th.
The Energy Savings Trust had received over 70,000 telephone calls in the first 5 days since the scheme inaugurated, as householders looking to reduce their energy costs moved quickly to guarantee they are one of the forecast 125,000 who could profit from the £400 Government cashback.
The Energy Savings Trust acknowledged the immense degree of involvement by the public could lead to the financial support reaching its limit by March 2010. Notwithstanding this A representative of the DECC stated: “The scheme’s been very popular. We’re very happy with the take up. There are vouchers available and people should apply for the scheme”.
Applicants should note that the vouchers are only valid for 12 weeks during which the installation needs to be completed, paid for and the cash back application submitted. If householders delay the voucher could expire with no gurantee that they will be able to reapply and receive a replacement valid voucher.
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The Boiler Scrappage Scheme announced by the UK Government does not apply to Wales, Northern Ireland and Scotland and this has caused some concern in those regions.
The Energy Savings Trust has reported that “While around 125,000 English households are set to benefit, it has now been claimed that as many as 12,000 Scots will miss out due to Hollyrood’s reluctance to sign up to the scheme.”
It is claimed that the Scottish government needs to follow the example set south of the border and give households in Scotland a financial incentive to upgrade their boilers.
Under the new initiative in England, consumers will be given £400 towards a new energy efficient boiler in exchange for their old G-rated ones which are very inefficient. The improved efficiency will lower CO2 emissions and enable households them to save as much as £200 a year on heating bills. (Editors note: visitors using our Boiler Efficiency Database can also read information on the typical savings they could receive if they replaced their current boiler with the latest SEDBUK A rated boilers )
Prompted into action by the media coverage a spokesman for the MSP Scottish government stated: “We are consulting on an Energy Efficiency Action Plan for Scotland, and welcome views on any Scottish energy-saving scheme including potential incentives to replace boilers.”
In these difficult economic times the existence of the scheme is sensitive as in addition to the energy saving benefits, it is estimated that the scrappage scheme will support around 250,000 jobs in small and medium-sized businesses across the UK.
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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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The boiler scrappage scheme has been announced by Chancellor Alistair Darling. This important energy efficiency initiative has resulted in a boiler scrappage scheme that will pay people £400 to replace their old boilers with new, more energy efficient ones.
The Chancellor stated that “Each inefficient boiler adds over £200 to household bills and one tonne of carbon to the atmosphere,” . It can therefore be seen that the scheme will be good for the environment in addition to helping to save householders money on their heating bills each year.
From April 2010, some £200m would be added to help with energy efficiency to cut carbon emissions from homes and is part of a range of energy efficiency initiatives which include plans to create jobs in the “low-carbon sector” and to encourage electric motoring.
“Tackling climate change will bring new opportunities for new low-carbon industries,” Mr Darling said, insisting that investment to create “high-skilled, high-paid jobs” in this area would be “crucial to our future prosperity”.
The main thrust of these initiatives and the boiler scrappage scheme is to develop Energy efficient homes across the nation.
Investment in a low-emissions future for the UK would thus be split between new technology investments and improvements to existing homes. Mr Darling stated “As well as investing in clean and low-carbon technologies, we must become more energy efficient, to cut emissions as well as household bills,a quarter of all the country’s emissions come from households.”
The boiler scrappage scheme he introduced will “help up to 125,000 homes replace the most inefficient boilers with new models”. The announcement has been warmly received by the energy industry and Phil Bentley, managing director of British Gas, commented that “this is a welcome step towards replacing Britain’s four million old, inefficient boilers”.
Additional media comment included the consultancy Deloitte who observed “home owners and the environment [would] benefit greatly from the scheme”. “Domestic heating in the UK is a significant source of emissions, with boilers accounting for approximately 60% of these emissions.”
There are bonuses for househoilds who make rapid strides towards energy efficiency and home enegry generation. “From April, people with a home wind turbine or solar panels who plug their excess power into the national grid will receive on average £900 a year,” Mr Darling said. “I intend to make this tax free.”
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