Department of Energy and Climate Change
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Boiler scrappage to benefit jobs, climate and bills

Boiler scrappage to benefit jobs, climate and bills

News Release issued by the COI News Distribution Service on 05 January 2010

Prime Minister Gordon Brown and Energy and Climate Change Secretary Ed Miliband will today kick start a national scheme to upgrade household heating systems to cut carbon, save money on fuel bills and sustain work for the heating industry.

Prime Minister Gordon Brown and Energy and Climate Change Secretary Ed Miliband will today kick start a national scheme to upgrade household heating systems to cut carbon, save money on fuel bills and sustain work for the heating industry.

Up to 125,000 households in England with working “G-rated” boilers can from today apply through the Energy Saving 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.

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

The Prime Minister 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.”

Ed Miliband said:

“The Boiler Scrappage Scheme will save around £200 off heating bills per year for families that are replacing their old boilers, and in total will save the same amount of carbon equivalent to taking around 45,000 cars off the road.

“The Scheme will add to the existing package of Government measures to help householders be smarter about the energy they use, leading to permanently reduced fuel bills and cutting emissions.”

Fraser Winterbottom, Chief Operating Officer, Energy Saving Trust said:

"We know that people will act on larger energy efficiency measures like replacing boilers when they are both good for the environment and cost effective for them. They also need to be able to trust the claims that are made around energy efficiency measures. The Energy Saving Trust is impartial, can provide this assurance, and can provide information to help people assess whether their boilers are eligible. If you have access to the internet you can go on line to check whether your boiler is G rated or if you prefer, our expert nationwide advice centre staff are also available to advise you over the phone. We are here to help."

Roger Webb from the Heating and Hot Water Industry Council, the trade association for the Heating industry 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. The scheme is good on many levels because householders could see a large reduction in their energy bills, the major carbon savings resulting from replacing inefficient products will help climate change and finally for UK Industry and employment because most boilers installed are actually manufactured in the UK.”

Notes to Editors

1. To find out more about the Government’s Boiler Scrappage Scheme and to register, contact the Energy Saving Trust by visiting www.est.org.uk or calling the advice line on 0800 512 012

2. The Boiler Scrappage Scheme joins the package of Government measures to improve household energy efficiency. These include CERT, an obligation placed on energy suppliers to offer energy efficiency measures to households; the Warm Front scheme, targeted at pensioners and those on qualifying disability or income related benefits, to provide heating and insulation measures which could reduce fuel bills; Decent Homes, a programme to improve the energy efficiency of social housing; CESP, the community energy savings programme funded by an obligation on energy suppliers and electricity generators; and Pay As You Save trials, which are currently being piloted in five areas to test out new ways to finance whole house energy makeovers. In conjunction with the rollout of smart meters and the introduction of cashback for the generation of renewable heat and electricity, Government is helping householders be smarter with their energy use.

3. According to the HHIC, the average cost of a boiler and installation is around £2500.

4. The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change. We are pushing hard internationally for ambitious effective and fair action to avert the most dangerous impacts. Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty.

Contacts:

Department of Energy and Climate Change
nds.decc@coi.gsi.gov.uk

Philippa Heap
Phone: 0300 068 5218
philippa.heap@decc.gsi.gov.uk

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