Months of campaigning by Mick Williams and the heating industry, was followed up with days of speculation before the Chancellor of the Exchequer Alistair Darling announced the introduction of a boiler scrappage scheme. Mark Kelly, CEO of the Baxi Group UK, looks at the proposed “Greener Boiler Incentive” and its implications for the UK heating market, installers and homeowners.
It is well documented that back in 2005, domestic carbon dioxide emissions accounted for 27% of the UK’s total emissions. The introduction of the Code for Sustainable Homes has promoted sustainability in the new build sector, while the Decent Homes programme has assisted social housing. However, it is the existing, private housing stock where the most important carbon savings could be made.

According to the recent English House Conditions survey, there are nearly 15 million non-condensing boilers still in use in the UK, of which around 4.2 million are permanent pilot boilers (SEDBUK Band G). Anything that will encourage homeowners to upgrade to SEDBUK band A boilers will reduce their carbon footprints as well as helping them to lower their fuel bills.

That’s why the boiler scrappage scheme is such a great idea. In his Pre-Budget report, Alistair Darling allocated £200 million to improve energy efficiency and tackle fuel poverty, by offering £400 for up to 125,000 households to upgrade their old boilers and provide extra resources for Warm Front to help 75,000 of the most vulnerable households with heating and insulation.

Although homeowners are entitled to approximately £50 CERT funding towards replacing Band G boilers, the grant barely covers the cost of the energy performance certificate (EPC), required if a dwelling is to be rented or sold, and is not enough of an incentive to get them to replace the boiler.

Mick Williams, MD of Williams & Co, a plumbers’ merchant in the south of England, got the idea for the boiler scheme when the Government announced that it was introducing a car scrappage scheme to kick-start the ailing automotive market. He started off by mentioning his idea in his blog, then someone suggested it would be worth setting up a petition on the Number 10 website. We at Baxi Group got involved when he started posting information on Twitter. Then the campaign really started to get going and he got the backing of some leading industry names, as well as some key political figures. To date there are more than 2000? names on the petition.

Mick explains: “Getting rid of some of the most inefficient boilers in homes would have a beneficial effect on the environment, and would help to alleviate fuel poverty in some of the country’s most vulnerable households, by helping them save up to £235 per annum on energy bills.

“Applying for the grant needs to be kept simple, and £400 needs to be paid direct to the householder, rather than to a large contractor. This will guarantee they’ll get a competitive quote, making the grant good for them and good for installers. And with around 70 per cent of boilers being manufactured in the UK, it will also be a boost for the home heating industry.”

It’s great to see the government.