Boiler scrappage scheme: How to benefit

By SIMON LAMBERT, THIS IS MONEY PUBLISHER
Updated: 12:05 EST, 13 January 2010

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A boiler scrappage scheme giving households a £400 incentive to install a new heating system, which can potentially be doubled to £800, is launched today.

Boiler scrappage scheme: But not all households will benefit from £400 payments

An estimated 125,000 households with G-rated boilers will be able to get a £400 voucher from the Government towards having a new boiler installed.

But this will exclude many more than can actually qualify, as there are 3.5m households with G-Rated boilers in England.

›› The catch: Scrappage covers just 4% of 'worst' boilers

Already energy giants British Gas and Npower have said that they will match the payment, giving households £800 off the cost of a new boiler.

The vouchers from the Energy Saving Trust will be issued from 18 January, earlier than had been predicted after the announcement of the scheme in December's Pre-Budget Report.

Who can take part?

Compared to the popular car scrappage scheme the number of people who can benefit from the payments is limited.

Only those with the least efficient G-rated boilers will qualify for the scheme. These will typically be at least 15 years old and must be replaced with the most energy efficient A-rated new boilers.

How will it work?

First find found out if your boiler qualifies for replacement, visit the Energy Saving Trust website for advice on this.

Then get a quote for a new one from a qualified installer. Ideally, you should get more than one quote, after all you will be paying the majority so getting the best deal is vital. A new boiler costs about £2,500 installed, according to heating industry experts.

Provide the Energy Saving Trust with details of your old boiler and the installer of he new one. The EST will want proof the installer has visited your home and given a proper quote for the work.

Once everything is in place, a voucher worth £400 can be issued from 18 January. Once the work has been done you should get a £400 rebate within 25 working days after the EST gets the invoice and the voucher.

Why replace your boiler?

The Government claims the £50m scheme will save as much carbon as taking 45,000 cars off the roads and will also cut a household's energy bill by up to £235 a year.

For households that need a boiler replacing this provides a good money-off incentive. The Government will give you £400 and energy giants installation arms will match this providing an £800 saving.

What do I need to watch out for?

Beware simply signing up to an eye-catching energy giant deal. The big energy companies' installation arms can charge far more for work than a local independent firm. Make sure you compare quotes and get the best deal. You will be paying the majority of the bill after all.

When you get a quote for a new boiler ensure that the engineer checks the entire system. You do not want to end up with a further expensive bill for replacing other parts of your heating system due to having a new boiler. Get a full and final price for all work needed.

Choose a good new boiler. The Energy Saving Trust website has tips on how to get the best new fuel efficient boilers. Consumer group Which? also has comprehensive tests of boilers, with reviews of all their features.

How can you tell if your boiler is G-rated?

The Energy Saving Trust says: 'A good quick test for gas boilers is to see if it has a permanent pilot light - if it has then it is very likely to be a G-rated boiler. If it is gas fired and over 15 years old, it is likely to be eligible. If it is oil fired and over 25 years old, it is likely to be eligible.

For more advice see its boiler scrappage scheme page

How to cut your energy bills

Energy suppliers may have begun cutting their gas and electricity charges - but some are still a lot cheaper than others. These links should help... special report 'Is it worth switching?' and try our fuel bills calculator