Some 125,000 households in England with working “G-rated” boilers can now apply through the Energy Saving Trust for a voucher giving them £400 off the price of an “A-rated” boiler or a renewable heating system.
Prime Minister Gordon Brown launched the government's boiler scrappage scheme on January 5, in a bid to upgrade household heating systems, cut carbon, fuel bills and create work for the heating industry.

Vouchers worth £400 will be issued to householders from January 18 by the Energy Saving Trust (EST) which is administering the scheme. The grant will be available on a ‘first come, first served’ basis.

Once eligibility is confirmed, the EST will issue a voucher which is valid for 12 weeks. When work is completed and paid for by the householder, they must send the installer’s invoice and the voucher to the EST, who will reimburse £400 to the householder.

Vouchers can be redeemed against a boiler from manufacturer which is for A-rated or equivalent gas, oil or LPG boilers, boilers with a Passive Flue Heat Recovery Device, Micro CHP units or Microgeneration Certification Scheme-registered biomass boilers and heat pumps. Solar thermal is also eligible if combined with an eligible boiler replacement.

Installation of a gas or oil boiler must be carried out by an installer registered with a competent person's scheme (such as GasSafe or OFTEC). Installation of a microgeneration technology must be carried out by a person qualified under the Microgeneration Certification Scheme.

The government said the incentive will sustain work for the 130,000 installers and more than 25 UK-based boiler manufacturers throughout the recession.

Speaking on January 5, 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 boiler scrappage scheme has already triggered some companies to match the government's offer and it is expected others will follow suit. British Gas, the biggest UK installer of boilers, is planning to match the government's £400 discount.

According to the Heating and Hotwater Industry Council (HHIC), there are approximately 4.5 million SEDBUK Band G rated boilers still in use in the UK, each working at less than 70% efficiency.

Roger Webb from the HHIC, the trade association for the Heating industry said: “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.”

The government's intention to launch a boiler scrappage scheme in England was reported on www.heatingandventilating.net, prior to the announcement by Chancellor Alaistair Darling in his pre-budget report.

The government estimates that replacing 125,000 G-rated boilers will save about 140,000 tonnes of CO2 emissions a year. The scheme is open to householders in England only who live in an owned or privately rented home. The government estimates a household's energy bill could be cut by up to £235 a year.

For more details visit the Energy Saving Trust website www.energysavingtrust.org.uk or call the advice line on 0800 512 012