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Heating industry urges government to scrap “Boiler Tax” to ease cost of living crisis

The UK heating industry is calling on the Government to scrap the Clean Heat Market Mechanism (CHMM), widely dubbed the “Boiler Tax,” in light of the Prime Minister’s pledge to tackle the cost of living crisis.

Mike Foster, chief executive of the EUA

Mike Foster, chief executive of the UK’s leading heating trade body (EUA), has written to Energy Secretary Ed Miliband urging him to take decisive action by ending the CHMM at the close of this financial year. The policy, introduced under Boris Johnson’s government, imposes fines on boiler manufacturers who fail to meet heat pump sales targets—a measure that has backfired, increasing costs for consumers without boosting demand for heat pumps.

“Energy bills are central to how households feel about their finances, and while the Government’s £150 bill reduction is welcome, the cost of heating a home isn’t just about what flows through the meter—it includes appliance costs too,” said Foster. “The CHMM adds £27 to the cost of replacing a boiler, rising to £36 if planned legislative changes go ahead. This is a needless burden on 1.5 million households every year.”

Foster argues that the policy has failed to stimulate heat pump uptake, leaving manufacturers with warehouses full of unsold stock while passing fines down the supply chain to consumers. “Scrapping the Boiler Tax would send a clear signal that the Government is serious about easing the cost of living,” he added.

The heating industry stands ready to work with ministers on alternative strategies to increase demand for low-carbon heating solutions without penalising consumers.

13 January 2026

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