No more boiler scrappage vouchers says Lord Hunt

No more boiler scrappage vouchers says Lord Hunt

The UK government has refused to fund an extension of the boiler scrappage scheme, having given out all 125,000 vouchers for householders to replace G-rated or worse boilers.

The onus is now on industry to discount prices for work, because no more funding will be made available by government for the scheme.

The government was offering up to 125,000 households £400 towards the cost of upgrading their boiler (if G-rated or worse) to a high efficiency A-rated boiler or renewable heating technology.The scheme closed to new applications at 2pm on Friday, March 26.

On March 16, 35,390 boilers had been installed using the vouchers. It has cost the government £50 million to fund the scrappage scheme, launched in January 2010.

There are currently around 3.5 million homes in England with the very least efficient type of boiler (G-rated or worse).

Despite extension calls from boiler maker Worcester Bosch and others in the industry, Chancellor Alistair Darling's budget did not include more funding for an extension of the popular boiler scrappage scheme.

"The scheme was always intended to be a limited sum of money to kick start the industry and raise awareness of energy efficiency", said a spokesman for scheme operator Energy Saving Trust. He added: "We understand some companies will continue to offer reductions on new boiler installation, after the closure of the scheme."

"The scheme has also provided a much needed boost to England's plumbers and boiler manufacturers, helping to sustain work for the 130,000 installers and up to 25 UK-based boiler manufacturers throughout the economic recovery" said Lord Hunt, Energy and climate change minister.

Some energy suppliers have said they will continue to run their own promotional schemes. Over the past two months, the major energy firms which sell and install boilers (British Gas, E.On, npower and Scottish & Southern) have matched the government's offer and some boiler manufacturers are also offering deals.

"We hope that the industry will continue to offer incentives for households to upgrade their boilers, as there are still many of the worst performing boilers out there", said Fraser Winterbottom, chief operating officer for the Energy Saving Trust.