According to the latest Boiler Guide press release, reinstating the Boiler Scrappage Scheme in England will help homeowners cut their fuel bills.

Boiler Guide is backing the Heating and Hotwater Industry Council (HHIC) who are calling on the Government to reinstate the boiler scrappage scheme in England, which last year saw more than 118,000 old and energy inefficient boilers scrapped in favour of new A-rated energy efficient models.

The incentive proved a runaway success last year, encouraging 61% of homeowners to replace their old boiler as a direct result of the scheme, enabling them to make their homes more energy efficient, saving money and reducing greenhouse gas emissions in the process.

Of the boilers replaced, 51% of them were over 25 years old and with energy bills at an all-time high, the need to become more energy efficient is growing in awareness amongst homeowners. Reintroducing the boiler scrappage scheme would be a productive way to help householders in their battle to save money as energy bills continue to rise.

Swapping an old inefficient boiler for a new boiler will help homeowners to save an average of £290 annually on their central heating bills. But there are many advantages to the boiler scrappage scheme, not least:

• It provides a financial incentive, encouraging homeowners to trade in their old boilers for newer energy efficient models
• Installing a new energy efficient boiler will save energy and reduce energy bills
• It will help to achieve cuts in greenhouse gas emissions
• The scheme raises money for the Treasury
• It helps to protect jobs and encourage growth in the UK’s domestic heating and hot water industry

David Holmes, founder of Boiler Guide says: “Saving energy means saving money and one very effective way to do that is to replace your old energy-sapping boiler for a brand new energy efficient model.

“Unfortunately during these increasing tough economic times, many homeowners simply cannot afford the initial upfront costs needed to install a new boiler. And that’s why schemes like this are worth their weight in gold.

“The merits of the boiler scrappage scheme have already been proven and given that the scheme continues to run successfully in Scotland, it’s high time the scheme was reinstated in England.”

As the UK’s leading online resource of boiler and central heating installers, whether your boiler needs repairing or if you’re looking to install a brand new boiler, Boiler Guide is the go to place to help you source boiler quotes from recommended installers and heating engineers.

For more industry news and views, or to find an engineer in your area visit www.boilerguide.co.uk

British Gas, one of the UK’s leading energy suppliers, has relaunched its boiler scrappage scheme.

Homeowners in England, Wales and Scotland will be able to make use of the scheme, which enables households to replace energy inefficient boilers with a new Worcester Bosch appliance. Rated ‘A’ for efficiency, the Worcester Bosch central heating boiler can save households substantial money on heating bills each year.

Unfortunately, the cost of installing a new boiler dissuades many homeowners from replacing old appliances, which may be costing tens if not hundreds of pounds per year in excess energy bills. The British Gas boiler scrappage scheme aims to solve this problem by offering customers a discount off any new Worcester boiler when they trade in their old boiler. By arranging a quote before 30th June 2011, you’ll be able to get a £400 discount off any model from their Worcester range, or £200 off other boiler models.

Referring to a similar scheme run previously by the UK and Scottish governments, a spokesperson for British Gas said: “The government scheme proved very popular, but a cap on the number of available vouchers meant that thousands of households across the country missed out”.

The spokesperson added that the British Gas scheme would “ensure that some of the 3.5m households estimated to still be heated by inefficient boilers have another opportunity to benefit”.

The extent to which an old boiler can affect heating bills is not all that clear, as various factors must be considered, but it is commonly accepted that up to 25 per cent of a household’s annual energy consumption is wasted.

Charlie Brown of British Gas explained: “An inefficient boiler is one of the biggest sources of wasted energy and money in the home. It’s really important to ensure that your boiler is in a good condition and working efficiently during the warmer months so that there are no nasty surprises when temperatures drop”.

The cost benefits of replacing energy inefficient boilers remains a matter of controversy. Whilst British Gas offers £400 towards the cost of a replacement boiler, customers tend to pay out far more – thousands of pounds in some cases – on new installations. If an energy inefficient boiler costs a household an additional £100 per year, a replacement under the boiler scrappage scheme might not save money for many years, by which time the new condensing boiler might just require its own replacement.

People in Scotland will once again be able to take up the offer of cash funding to help replace old boilers thanks to the re-launching of the Scottish Boiler Scrappage Scheme.

The Scottish Boiler Scrappage Scheme will once again be open for applications at 12.30pm on Tuesday February 1, 2011. The incentive aims to address the needs of some of the 250,000 homes in Scotland that are estimated to have boilers of the least efficient type.

By replacing boilers of low efficiency (70 per cent or under) the Scottish government is working to reduce the country’s CO₂ emissions.

Funding of £1million will be put towards the scrappage scheme, which is available to home owners/occupiers in Scotland. The money will be used to meet the cost of replacing inefficient boilers with new more efficient alternatives. A sum of £400 will be offered towards the cost of an upgrade.

Having your boiler upgraded will not only result in lower central heating costs but also reduced CO₂ emissions.

To be eligible for the scheme, you must:

• Obtain a quote for your boiler replacement.
• Apply for a voucher online or by telephone on 0800 512 012 from 12.30pm on February 1, 2011.
• Arrange the installation of your new boiler by March 25, 2011.
• Pay for the boiler and installation work up-front.
• Claim back the £400 by sending the completed voucher and invoice back to the Energy Saving Trust by March 25, 2011.

The credit crunch and subsequent recession, which is by no means over, have affected most types of business in the UK. The housing market suffered particularly badly, not least because the global financial collapse emanated from sub-prime mortgage lending in the US. Amid the economic turmoil, however, the UK’s domestic heating industry has shown encouraging signs of recovery.

According to the UK Domestic Central Heating Market Development, a survey published by MBD, the central heating business has enjoyed several successive years of annual growth. Although the UK’s domestic central heating sector has contracted by 8 per cent from 2006, a one per cent rise was recorded in 2008, 2009 and 2010. The MBD report predicts that the industry would have grown to a value of £1.63 billion by the end of this year.

Whilst news of the central heating sector’s recovery is undoubtedly promising, expectations ought to be managed carefully ahead of 2011. A downturn in the heating market had been anticipated by industry experts but a prolonged slump was largely averted, at least according to the MBD publication, by an increased demand for energy efficient products and services.

Projects devised by the former Labour Government, such as the immensely popular boiler scrappage scheme, helped to bolster the industry. It is unclear what impact the coalition Government will have on the domestic heating industry, however, amid widespread public spending cuts, the availability of grants and loans is at very best unlikely to increase under the current administration.

The MBD report has adopted a positive outlook, however, by predicting a sustained growth in the sector. The report estimates that the UK’s domestic heating industry will reach a value of around £2.05 billion by 2015, with annual growth in the region of 3 per cent and 6 per cent. The sale of boilers in the UK is also expected to increase. The MBD report anticipates annual growth to range from 4 per cent and 7 per cent over the coming years, with overall growth over the five year period ending 2015 expected to reach 30 per cent – a rise that would value the boiler sales sector at £1.05 billion.

As of the 1st October 2010, Part L of the Building Regulations is set to change in a bid to improve the energy efficiency of new homes in the UK. Over recent years, considerable attention has been paid to the efficiency of central heating boilers in order to meet the Government’s carbon emission targets. Schemes such as the boiler scrappage scheme, which was introduced earlier this year, have encouraged homeowners to replace their old energy inefficient boilers with SEDBUK Band A alternatives, however, as a result of the changes to the Building Regulations, use of the SEDBUK rating is set to be discontinued.

In implementation of the Energy using Products Directive (EuP), the Domestic Building Service Compliance Guide that accompanies Part L advises that SEDBUK Bands A and B will be dropped from the 1st October 2010 in favour of percentile efficiency ratings.

The move is significant in that only two types of minimum efficiency ratings can be used once the changes come into force: 90 per cent on the SEDBUK 2005 list or 88 per cent on the SEDBUK 2009 list.

The principal difference between the SEDBUK 2005 and 2009 lists is that the latter incorporates summer and winter seasonal efficiency rather than being calculated at one point in the year.

Consequently, the 2009 list reduces the overall efficiency rating of a boiler by as much as 2 per cent; therefore, a Band A boiler may be 90.1 per cent efficient under SEDBUK 2005 or 88.1 per cent under SEDBUK 2009. SEDBUK 2005 acts as the default list where 2009 is not stated by the boiler manufacturer.

Switching from SEDBUK Band A or Band B to a minimum energy efficiency percentage may appear to be a cosmetic change to Part L of the Building Regulations, but it is expected to simplify the advertising of such ratings by bringing them in line with those used for fridges and washing machines.

In effect, all boilers, as of the 1st October 2010, must be at least 90 per cent (SEDBUK 2005) or 88 per cent (SEDBUK 2009) efficient, however, SEDBUK Band B (2005) boilers can still be installed in properties where building work began before the 1st October or where a contract for work has already been agreed, providing that the installations are completed by 6th April 2011.

In a separate change, domestic hot water storage vessels will be subject to efficiency improvements of at least 10 per cent in order to reduce standing losses and associated carbon emissions.

Following the relative success of the UK Government’s Boiler Scrappage Scheme, which benefited homes throughout England , the Scottish Government has announced plans of its own scheme to replace old, energy inefficient boilers with more environmentally friendly condensing boilers.

Up to 5,000 eligible households in Scotland will be able to receive £400 towards the cost of upgrading their existing boilers. The Scottish Boiler Scrappage Scheme is to be managed through Energy Saving Scotland and vouchers will be made available as of May 24th 2010, which gives just enough time for households to register their interest.

The environmental benefits of upgrading inefficient boilers have been widely publicised in England, where the UK Government’s scheme recently came to an end. Energy Saving Scotland, which is an agency of the Scottish Government, believes that up to 5,000 tonnes of carbon emissions can be prevented each year through the boiler scrappage scheme, for which households can apply online or over the phone.

In order to put these savings in perspective, 5,000 tonnes of carbon dioxide is the approximate equivalent of heating 7,000,000 baths or removing 1,700 cars from Scottish roads. In short, the Scottish Government’s Boiler Scrappage Scheme could have a relatively small but nonetheless significant impact on carbon emissions in the country.

Furthermore, reducing carbon emissions is not the only benefit of replacing old boilers for more energy efficient alternatives; according to various sources, an environmentally friendly boiler can result in annual bill savings of almost £200, which is hardly insignificant in the current economic climate.

Scotland’s Housing and Communities Minister, Alex Neil, said: “Scotland is seen around the world as a champion for low-carbon living. A vital part of this is helping people to live in greener homes”. Mr Neil added that greener homes are also cheaper to run, before concluding: “Through the boiler scrappage scheme we will help people replace rickety old boilers for new energy saving models and importantly, put money back in the pockets of householders. At the same time we are providing an economic stimulus for the heating industry, supporting jobs and helping it get through this financially difficult time”.

Since its launch in January this year, the UK Government’s Boiler Scrappage Scheme for England has received mixed reviews. Green energy campaigners have, generally speaking, been in favour of the scheme, which enabled eligible households in the UK to receive a £400 voucher to put towards replacing their energy inefficient G-rated boilers with considerably more efficient A-rated systems.

The £400 voucher was matched by the leading energy companies, including British Gas Boilers, who offered to fix and install the new A-rated boilers provided they were purchased through the company. The combined saving generated by the Boiler Scrappage Scheme and energy partner deals totalled £800, which caught the attention of many households.

The Boiler Scrappage Scheme was also hit by a series of delays, which meant many customers had to wait weeks to receive their vouchers. Nevertheless, it is widely accepted that upgrading a central heating system from a G-rated boiler to an A-rated boiler can save over £200 on annual energy bills, so a short delay in receiving the voucher is unlikely to have affected many households in the long-term. Regardless of the merits of the scheme, one thing is now clear: the Boiler Scrappage Scheme is over, as all 125,000 vouchers have been taken by households across England.

Speaking about the scheme’s closure, Energy and Climate Change Minister, Lord Hunt, announced: “The scheme’s been a great success and is already helping people cut down on their fuel bills. An ‘A-rated’ energy-efficient boiler can help save around £200 a year off fuel bills and reduce emissions. 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”. Despite its relative success – in terms of being ‘sold out’ within three months and helping to reduce greenhouse gas emissions – the Department of Energy and Climate Change has stressed that it has no plans to introduce a similar scheme in the near future.

The Department of Energy and Climate Change announced yesterday 54,578 vouchers under the Boiler Scrappage Scheme had been issued to households within the first six weeks of the project. In total, 125,000 vouchers were made available under the scheme, which is ultimately designed to reduce carbon emissions caused by the energy inefficient G-rated boilers thought to be installed throughout many households in the UK. Therefore, a little over 70,000 vouchers remain available under the Boiler Scrappage Scheme, which is worth around £28 million.

The level of interest attracted from households interested in availing of the scheme had initially surprised the Energy Saving Trust, which is responsible for administering the scheme. It was reported several weeks ago that the scheme’s popularity was such that thousands of applicants were forced to endure lengthy delays as a result of strained operations and limited resources at the Energy Saving Trust, which claimed to have received an average of 5,000 calls a day – almost 400,000 in total – at each of its regional advice centres. Clearly, the volume of interest in the Boiler Scrappage Scheme far outweighs its capacity to accommodate all potential applicants, however, the Energy Saving Trust has since doubled its staff numbers to more effectively cope with viable candidates. Ultimately, the news that over a third of all vouchers have been issued to households within the scheme’s first 6 weeks will be seen as a measure of its success.

Director of the Heating and Hotwater Industry Council, Roger Webb, agreed that: “The boiler scrappage scheme has injected new life into the domestic heating market. Installers are thrilled both existing and new customers are realising the benefits of this scheme and actually acting on the chance to replace their G-rated boilers. Normally a boiler purchase is a distress buy but customers are receiving their voucher and actually scheduling in an installation”. One reason for the unexpectedly high popularity of the Boiler Scrappage Scheme (at least at this early stage) is that all of the leading energy companies have moved to match the £400 on offer under the scheme, so total savings towards a more energy efficient boiler are now as high as £800.

Since the UK Government announced its Boiler Scrappage Scheme, which provides homeowners with £400 vouchers (one per household) to replace their existing G-rated boilers with A-rated alternatives, the plan has attracted praise and criticism in equal measure.

On the one hand, the Boiler Scrappage Scheme has been lauded as the answer to the nation’s domestic energy efficiency problems (at least where homeowners and central heating systems are involved) whilst, on the other, the scheme has been derided as too costly, impractical and largely pointless. Although opinion is usually divided on any measure introduced by an incumbent government, the Boiler Scrappage Scheme is coming under increased fire as its finer points are picked apart and analysed in detail. Therefore, it comes as quite a disappointment to the Government the scheme is now beset by extensive delays.

The organisation responsible for the administration of the Boiler Scrappage Scheme, The Energy Saving Trust, claimed last week its operations have been overwhelmed by an unexpectedly high demand from homeowners who wish to avail of the scheme. As of Monday last week, the trust had received some 160,000 calls in response to the scheme, which had been converted to approximately 36,000 applications. Unfortunately, there are only 125,000 vouchers available under the Boiler Scrappage Scheme, so it is somewhat obvious the trust would have been hit by a deluge of calls and applications in its earliest operative months. Nevertheless, whilst the Energy Saving Trust failed to anticipate such high demand, it has already implemented measures to ensure its backlog of applications is cleared.

A Spokesman for the Energy Saving Trust said: “People applying now should expect to receive their vouchers within 10 days. People who called earlier have not been forgotten about. The call centres are working their way through logged calls in chronological order”. The trust has also stated it has doubled the number of staff in its call centre to cope with the increased demand. Fraser Winterbottom, Chief Operating Officer, Energy Saving Trust, added the trust was some “three or four days behind” schedule, but would soon return to normal service.

The UK Government’s Boiler Scrappage scheme was released under the guise of helping to improve energy efficiency in the home. Although there is no evidence to suggest the scheme is unable to achieve this aim, there are growing concerns that, aside from assisting the environment and lowering energy bills (at least to a certain extent), the scheme will fail to attract interest from the majority of financially ‘poor’ households.

In fact, according to one of Britain’s best known plumbers, Charlie Mullins of Pimlico Plumbers, the Boiler Scrappage scheme is likely to prove more costly over time, which is especially critical for the country’s less wealthy customers.

Approximately 125,000 were thought to be able to take part in the Boiler Scrappage scheme, which offers customers a cash incentive of £400 for replacing their older, less efficient central heating boilers (it must be G-rated – i.e. has a pilot light) with more modern and energy efficient varieties (specifically, the condensing boiler). Unfortunately, replacing conventional boiler systems with condensing boilers can sometimes prove problematic in so much as they often need to be located in a different area of the home due to regulation changes and or physical differences in plumbing requirements. This process can prove to be a logistical nightmare in many cases and usually involves greater installation costs. As such, the £400 voucher to replace an old but functional boiler at a cost ranging between £1,000 and £2,500 already constitutes a poor financial incentive to make the change.

Another concern raised by the scheme, which has so far attracted interest from 16,000 or so households in the country, is the newer, more energy efficient condensing boilers are not as reliable as the outmoded conventional models. According to Charlie Mullins, older boilers would typically last up to 15 years or longer before requiring repair or replacement. In the case of new condensing boilers, however, Mullins argues his plumbers often find themselves replacing newer models after just 3 to 6 years. As reported in the Guardian, Mullins argued that the scheme could prove to be “financial madness” for many homeowners.