‘Boiler tax’ scrap scheme set for the chop after price rises

THE Energy Secretary is set to kill off a “boiler tax” requiring homeowners to pay to scrap their old appliances.

Boiler-makers that miss heat-pump installation targets were to be fined from April as part of a push for up to 600,000 devices a year by 2028. But manufacturers responded by raising their prices by up to £120 – passing the costs of the scheme to consumers.

No final decision has been made, but Claire Coutinho has held discussions with officials about scrapping the tax, The Times reported.

A government source was quoted as saying ministers were “looking again at the policy” and accusing boiler-manufacturers of imposing “indefensible price hikes”.

After ministers confirmed last year that the measures, known as the Clean Heat Market Mechanism (CHMM), would go ahead, Worcester Bosch announced the price of all its gas boilers would increase by £120, while Vaillant was preparing to charge £95 more. At the time, Ms Coutinho accused firms of “price gouging” and said there was no evidence they would not be able to hit their heat pump targets.

“We think it’s extremely unlikely that anybody will be fined,” she told LBC. “It’s something I’m going to look at very carefully and I’ll talk to anyone who I think is passing on an unfair cost to the consumer.”

Sources at the Department for Energy Security and Net Zero said Ms Coutinho’s priority was to help families to make environmentally friendly changes, instead of forcing them to do so.

Noting a backlash to more draconian net zero policies across Europe, a department source said they did not want to see the same thing happening in the UK and have people losing confidence in heat pumps. Rishi Sunak had been facing a backbench mutiny from Tory MPS, with as many as 50 members of the Net Zero Scrutiny Group having prepared to vote against the CHMM.

Craig Mackinlay, the chairman of the group, had called the levy “another blow to hard-working families”, while Sir Jacob Rees-mogg, a former energy secretary, warned it was an example of “green mania [that] will increase inflation and lower living standards”.

In December, 26 of Mr Sunak’s own MPS opposed quotas for electric vehicle sales, meaning they would have been voted down if it was not for the support of the Labour Party.

A Department for Energy Security spoeksman said: “We remain committed to our ambition of installing 600,000 heat pumps a year by 2028.”