Homeowners spared price rise as boiler tax shelved

HOMEOWNERS will no longer pay up to £120 in extra charges for their boiler after manufacturers reversed their decision to raise prices.

Boiler makers had expected to face extra fines under planned sale quotas for heat pumps, which were dubbed a “boiler tax”, and raised prices accordingly. Ministers shelved the plans under which companies would have been fined £3,000 every time they failed to fulfil a heat pump installation beyond a certain quota, until after the election following a backlash from Conservative MPS.

But extra costs will no longer be passed to consumers now that Claire Coutinho, the Energy Secretary, has confirmed the plans would be pushed back by a year until April 2025 and applied pressure on them to scrap the extra charges.

Worcester Bosch had previously announced the price of new gas boilers would increase by £120, while Vaillant was prepared to increase its prices by £95.

Baxi, one of Britain’s biggest boiler makers, will remove its £120 surcharge “as soon as possible” and return cash it had already collected, while other manufacturers are now set to follow suit.

It is understood boiler makers are set to reimburse their customers, while the Competition and Markets Authority confirmed it would consider a request from the energy department to review the heating appliance market.

Insisting that the public must not “needlessly hit in the pocket in the name of net zero”, Ms Coutinho said: “Unjustified price rises by some manufacturers for gas boilers were punishing ordinary people. Four big boiler companies dominate 90 per cent of the market and it was clear to me their sudden, sharp price rises were a concern. That is why I have called on the market watchdog to review the industry.

“I welcome the confirmation that it will consider this request, to ensure prices stay down and competition up.”