Boiler scrappage to save 250,000 jobs
The Prime Minister Gordon Brown and Energy and Climate Change Secretary Ed Miliband claim that the boiler scrappage scheme will benefit 130,000 heating installers and more than 25 UK-based boiler manufacturers. It will eventually prove beneficial to over a quarter of a million people employed by heating-related businesses, they added.
They announced that up to 125,000 households in England with working “G-rated” boilers could apply through the Energy Saving Trust for a voucher, which will entitle them to £400 off the price of a new, condensing “A-rated” boiler or a renewable heating system such as a biomass boiler or a heat pump.
Energy companies, including British Gas and npower, have said they will match the grant so offering the householder a potential total of £800 off the price of the installation. Added to the estimated annual fuel bill saving of between £200 to £235 a year, many industry observers hoped this would kickstart the depressed domestic heating market.
If 125,000 G rated boilers are replaced, the Government estimates it will save around 140,000t of CO2 per year - equivalent to taking 45,000 cars off the road.
“[The scrappage scheme] will slash household energy bills and carbon emissions while providing an important boost for the British heating industry," said Gordon Brown. "It will also 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.”
Fraser Winterbottom, Chief Operating Officer, Energy Saving Trust added that people were more likely to take action 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," he added. "The Energy Saving Trust is impartial, can provide this assurance, and can provide information to help people assess whether their boilers are eligible."
According to the Heating and Hot Water Industry Council, the average cost of a boiler and installation is around £2,500. Chief executive Roger Webb said the scheme should persuade many householders to make the investment in upgrading their heating.
"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," he said. "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."
For more information visit the Energy Saving Trust website advice line on 0800 512 012.