Boiler tax delay ‘will not help climate change battle’

This month’s delay on the so-called “boiler tax” is a step backwards by the government in its battle against climate change, says a top Midlands green energy expert.

Ron Fox, of Noreus Ltd, was commenting on ministers’ decision to put back its decision to fine boiler manufacturers who do not reach heat pump sales targets from April 1 this year to April next year.

The move is designed to encourage households away from traditional gas boilers and towards greener heating methods.

“This will not help the UK meet its net zero emissions targets and will leave the country paying more for its energy,” said Ron, of Noreus Ltd on the University of Keele Science Innovation Park (www.noreus.co.uk).

But the government said it has relaxed the rules on insulation, making it easier and cheaper for householders to qualify for a £7,500 heat pump grant because cavity wall and loft insulation will no longer be mandatory.

It said pushing this decision back a year to April 2025 will give the industry more time to get ready.

The rule changes, which will happen in the coming months, mean certain households will not have to pay a lump sum for installing insulation to qualify for the grant, the Department for Energy Security and Net Zero said, which could save upfront costs of £2,500.

Instead, any costs of installing insulation can be spread out over a longer time. Homes still need to have appropriate insulation to save on energy bills, although some households can get free or cheaper insulation through the Great British Insulation Scheme.

The Clean Heat Market Mechanism (CHMM) due to have been introduced this month would have meant that boiler manufacturers would have had to match, or substitute, 4 per cent of their boiler sales with heat pumps, or face a £3,000 fine for each missed installation.

However, in anticipation of fines, boiler manufacturers have been pushing up the price of gas boilers by up to £120.

“These price rises are unnecessary and could net the firms millions of pounds,” added Ron. He pointed out that the market is already there for heat pumps. When the government increased its grant support last October from £5,000 to £7,500, there were 2,247 applications for air source heat pumps in February this year, up by 77 per cent on February 2022.

However, this is dwarfed by the number of gas boilers still being fitted which average 125,000 a month.

This month the Energy Secretary Claire Coutinho called for the Competition and Markets Authority to investigate the boiler market, of which four big manufacturers – Worcester Bosch, Vaillant, Baxi and Ideal – control 90 per cent of the market.

The Clean Heat Market Mechanism aims to roll out 600,000 heat pumps a year by 2028.

Experts see the policy as essential to tackle emissions from the UK’s carbon intensive homes, which account for 15 per cent of greenhouse gases nationwide.

Current grants are available for £7,500 towards an air source heat pump; £7,500 towards a ground source heat pump (including water source heat pumps and those on shared ground loops) and £5,000 towards a biomass boiler. For more details go to www.gov.uk

If you want any advice about installing heat pumps, contact Ron on 01782 756995 or go to www.noreus.co.uk

Caption: Costly delay – this month’s new heat pump sales targets are ‘a step backwards’.