From April 1st 2010 British Gas are offering a £200 discount off a new boiler plus one year’s free HomeCare 200 boiler insurance worth £204. Purchases made prior to 30th May 2010 will also be offered interest free credit for a year.

Recently published figures from the Energy Savings Trust (EST) showed that as of 16th March 2010, 118,785 Government vouchers had been allocated with 35,390 A-rated boilers being installed. Since then the full allocation of vouchers has been taken up by homeowners.

However, whilst the Government’s discount is no longer available, energy firms are still offering their own incentives on new boilers.

Boiler Scrappage Schemes for Wales and Scotland are also about to get going, with the Welsh scheme to start on the April 6th 2010 by offering a £500 discount,whilst the Scottish Government has pledged £2m towards Boiler Scrappage Schemes through its Energy Assistance Package scheme.

125,000 households have taken advantage of the scheme, which offered homeowners a £400 discount off the cost of a new A-rated boiler when they traded in the old G-rated one.

Energy minister Lord Hunt said: “The scheme’s been a great success and is already helping people cut down on their fuel bills. An ‘A-rated’ energy efficient boiler can help save around £200 a year off fuel bills and reduce emissions. 

“The scheme has also provided a much needed boost to England’s plumbers and boiler manufacturers, helping to sustain work for the 130,000 installers and up to 25 UK-based boiler manufacturers throughout the economic recovery.”

Environment, sustainability and housing minister Jane Davidson said that the scheme will come into force on April 1st 2010, with £2.5m allocated to the scheme allowing up to 5,000 homes to benefit.

The scheme will reward households with a £500 voucher towards the cost of a new A-rated boiler when they replace their old G-Rated one. The switch can also save households up to £235 a year in energy costs as well as reducing greenhouse gas emissions.

Consumer watchdogs have claimed that the scheme would not help the long term sick, young families and the disabled, but Ms Davidson also announced “an additional £1.4 million to tackle fuel poverty through our Home Energy Efficiency Scheme during the next financial year.

“This additional funding underlines the Assembly Government’s ongoing commitment to tackling fuel poverty and reducing greenhouse gas emissions in Wales.”

Vale of Clwyd Labour AM Ann Jones said: “This boiler scrappage scheme will save hundreds of pounds for many householders who are currently suffering from fuel poverty.”

Some 54,758 vouchers which give households a £400 discount off a new A-Rated boiler when they trade in their old G-Rated boiler have been claimed, with approximately 70,000 still available.

The scheme has been made even more attractive by some larger energy companies such as British Gas offering an addition £400 cut on top of that given by the Government. 

The EST has said they have so far received c.400,000 calls about the scheme meaning a take up rate of 14%. The South East and North West have been the biggest take-up with 9,387 and 8,186 respectively.

However, with potentially 3.5m households eligible for the scheme and over 100,000 plumbing and heating engineers in the UK, the Association of Plumbing and Heating have said the scheme “fell short” of helping those in the industry.

So far there has been no hint that the boiler scrappage scheme will be extended, and with the number of vouchers available tumbling and savings of over £200 per year to be made by switching to an A-Rated boiler, it’s advisable to move quickly if you plan on taking advantage of the scheme.

Pressure had been on the Scottish Government for some time to introduce a similar scrappage scheme to the one which has run so successfully in England since the beginning of 2010. Yesterday’s announcement marks a victory for boiler scrappage campaigners, who have included small businesses and opposition politicians.

Whilst the finer details of the scheme are yet to be made available, Salmond has promised that the Scottish Government is committing in full the £2 million Barnett ‘consequentials’ received as a result of UK Government expenditure on its boiler scrappage scheme.

The scheme forms part of the Scottish Energy Efficiency Action Plan which is due to be published in the spring. If the scheme follows the format of the one in place in England then up to 5,000 households could receive a £400 discount towards the cost of a new A-Rated boiler when scrapping their existing G-Rated boiler, providing it is in working order.

The Boiler Scrappage Scheme which is already running in England and is being administered by the Energy Savings Trust has had over 200,000 enquiries since its launch in January.

CBI Director-General, Richard Lambert believes both businesses and homeowners alike require the relevant energy-efficiency education and incentives in order to implement energy saving measures so to create a national ’sea change’ in the usage of energy. Lambert continued “… we need easy-to-access support and incentives to encourage improved insulation in homes and offices, a switch to more fuel-efficient cars, and other energy savings steps.”

The recently announced Boiler Scrappage Scheme is one incentive initiative, providing homeowners in England and Wales the opportunity to scrap and replace their old G-rated boilers for new energy efficient boilers.

Following on from nPower, British Gas have also announced their own Boiler Scrappage Scheme by offering additional savings on new A-rated energy-efficient boilers, which includes 1 year’s free HomeCare 200™ -
British Gas’s emergency breakdown service covering existing radiators and pipework.

The Scottish Federation of Small Businesses (FSB) believes the scheme would be both beneficial to their economy, while contributing to their own energy efficient measures. Together with the FSB, the Scottish Labour Party and ‘Green’ campaigners are calling for a Scottish Boiler Scrappage Scheme.

The Chancellor Darling announced up to £400 grants for c.125,000 households in England and Wales for scrapping and replacing their old and existing G-rated boilers for new energy efficient models.

A spokesman for the FSB was recently quoted; “The ‘greener boiler’ incentive is good news for the environment and the householder but it also has the scope to provide work for local businesses, whether as prime or subcontractors.”

A Scottish Government spokesman has confirmed they are in consultations regarding energy efficiency action plans including an incentive to replace old, inefficient boilers.

The Boiler Scrappage Team would be surprised if Scotland didn’t follow Westminster’s Pre-Budget lead, as there would be a ‘Green’ disconnect within the United Kingdom, which would probably be frowned upon by the rest of Europe.

Furthermore, there is also discussion concerning a retrospective rebate in the event of a homeowner recently replacing their G-rated boiler. The Government could provide a pleasant surprise to homeowners located in England, who have recently ripped-out their old G-rated boiler unit and installed a new energy efficient model. Details are to be announced very shortly.

The Government’s objective is to provide homeowners the opportunity to reduce CO2 emissions and improve the efficiencies of certain domestic appliances. It has been currently estimated 125,000 households are eligible for the Boiler Scrappage Scheme.

The Government has stated in it’s pre-budget report that it intends to officially launch the Boiler Scrappage Scheme at the earliest possible date;
7.36 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 Pre-Budget 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.

As from Monday 14th December, Npower have said they will offer £400 off a new boiler when homeowners replace one that is more than 10 years old, with the only stipulation being that the new boiler is bought from and installed by Npower. Homeowners do not have to be existing Npower customers to qualify.

The incentive is in addition to that proposed by the Government meaning customers could potentially secure a total of £800 off their new boiler.

The process of the scheme announced by the Government, where households in England will be able to claim up to £400 if they replace their G-rated boiler with an energy-efficient one or with another renewable technology, has yet to be announced.

A Treasury spokesman said: “If the scheme is based on the car scrappage scheme, we hope claiming the incentive would be handled by the retailer“.

The scheme will begin in the new year and will run until the £50m funding has run out.

Full details have yet to emerge about exactly how the scheme will operate, but with an estimated £4.5m boilers in the UK being G rated, it may help to start researching your new boiler now as the £50m put aside by the Government means only 125,000 households can benefit.

The consumer reviews company Which? have a Boilers Buying Guide providing detailed reviews on 53 of the most popular central heating boilers on the market today.

Energy comparison website uSwitch calculates that a modern efficient boiler can save up to £235 a year on heating bills, meaning a new boiler along with the boiler scrappage incentive could soon pay for itself!