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Pre-Budget report: Govt to fund 125,000 new boilers

Chancellor of the Exchequer Alistair Darling has today announced a new scrappage scheme that will see the government help up to 125,000 households replace their inefficient boilers.

The Chancellor’s pre-budget report has pledged a £400 incentive to households who buy a new boiler or renewable heat unit to replace a working G-rated boiler.

The Government has said it will work with industry to launch the scheme at the earliest opportunity in 2010.

Mr Darling also announced an extension of the Warm Front scheme, covering an additional 75,000 households in the UK as well as an additional £200 million, from April, to help with energy efficiency measures.

The total funding for the Warm Front and the Greener Boiler Incentive is £215m in 2010-11 including Barnett consequentials for non-reprioritised funding. 

In his pre-budget report speech Mr Darling said: “Each inefficient boiler adds over £200 to household bills and one tonne of carbon to the atmosphere a year.

“Building on our successful car scrappage scheme, I will help up to 125,000 homes replace the most inefficient boilers with new models.”

In his response to Mr. Darling’s speech Liberal Democrat treasury spokesman Vince Cable described the pre-budget report as “good for bingo and boilers.”