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GB News
GB News
2 Mar 2024


NextImg:Boiler tax set to be axed 'for at least a year' under new watered-down plans

The Government is expected to scrap their so-called boiler tax for "at least a year", in an announcement coming as soon as next week.

Under the Clean Heat Market Mechanism, a fine of £3,000 was set to be levied against suppliers if they missed a target of selling one heat pump for every 24 gas boilers.

The scheme, which is meant to drive the take-up of heat pumps by four per cent, was due to start in April, however, the Department for Energy Security and Net Zero (DESNZ) is now expected to delay the start-date by a year.

Claire Coutinho, the Energy Secretary, will not be proceeding with the policy, which would see the price of boilers increase by up to £120.

The plans, which had been criticised as a form of "government coercion", have now been watered down and will no longer come into effect from April.

The 2024-2025 year will now be seen as a "monitoring year" where the Government tracks sales of heat pumps in relation to boilers.

The move is likely to come as good news to Conservative MPs, who had slammed the scheme.

Lord David Frost said: "Good news if confirmed. A very sensible stop on a wholly irrational policy. Well done to Claire Coutinho for sticking to her guns and facing down the opposition."