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Industry body urges action to support manufacturing jobs, cut energy bills, help save the planet and raise cash for the Government.
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SBGI, the energy industry body is supporting its division the Heating and Hotwater Industry Council (HHIC) by calling on the Chancellor, George Osborne to reinstate a Boiler Scrappage Scheme in England to provide a boost to the economy.
The scheme could raise revenue for the Treasury yet at the same time help people cut their fuel bills by nearly £300 a year. The HHIC is urging the Chancellor to include such a measure in his Pre Budget report due on November 29th.
The scheme is tried and tested, having been previously used in 2010 and is still running in Scotland.
The English scheme finished the same year. The SBGI wrote to the Chancellor last week pointing out the many benefits of the scheme, which include:-
Safeguarding the 150,000 jobs in the sector
Household bills reduced on average by £290 a year as a result of having a more efficient boiler
Each boiler with heating controls replaced saves 1.5 tonnes of carbon dioxide
Every £1 invested by the Government in money off the cost of a boiler raises
£1.25 in extra VAT for the Treasury Easy to administer with a tried and tested system
SBGI Chief Executive Mike Foster said:"Given the state of our economy, the Boiler Scrappage Scheme is a real no-brainer. It raises money for the Treasury, whilst cutting energy bills paid by hard-pressed homeowners. The money consumers save on their gas bills, nearly £300 a year, further boosts their spending on other goods and services. At the same time British jobs are protected in the industry and greenhouse gas emissions are cut too. It‟s a win-win situation."
"The Chancellor can give our industry a boost by announcing the Boiler Scrappage Scheme will be reinstated in England later this month. He has that power and he should use it to help people cut their fuel bills, protect jobs, save the planet and make money as well. What other policy does of all these things?"
Neil Schofield, Head of External and Governmental Affairs for leading manufacturer Worcester Bosch added: "The previous scheme proved to be highly successful because it was so simple. There is no need to reinvent the wheel and as one of this country‟s leading suppliers, we want the Coalition Government to learn the lessons of the boiler scrappage scheme and bring it back as soon as possible".
Notes:
Key results from the 1st Boiler Scrappage scheme 2009-2010
111,618 Boilers were "scrapped‟
£34m of bill savings annually
£60m in additional VAT tax receipts
61% would not have replaced their old boiler if it had not been for the scheme
77% who claimed a voucher fitted additional energy efficiency measures
51% of boilers replaced were over 25 years old (much worse than band G) The carbon saved is the equivalent of every car in the country being idle for 4 months
92% of installation companies benefitted in all parts of the country
How the Scheme was designed and operated
The scheme involved several administrative stages. Initially applicants needed to obtain a quote from an installer for replacing their boiler. They could then apply for a voucher through the online application portal on the Energy Saving Trust website. Anyone wishing to apply for the £400 grant would visit the Energy Saving Trust website and answer some questions about their existing boiler, including make, model, age of boiler, etc. The applicants were asked to self‐certify that: they had secured a quote from an installer for the work; the boiler being replaced was G‐rated, and working; and The replacement boiler would be A‐rated.
If the boiler was eligible for the grant, the Energy Saving Trust sent a voucher to the householder within 10 days of application receipt. The vouchers were valid for 12 weeks from the date of issue.
In practice, many people wanted assistance in completing their application. As a result, it was also possible for applicants to telephone the Energy Saving Trust Advice Centres. The Centres could either answer queries or take people through the web‐based application and apply on their behalf.
The next stage was to validate the voucher upon boiler installation. The boiler to be replaced was cross‐checked by the installer against a pre‐defined list to ensure it was G‐rated. At installation, on production of the voucher, the installer would countersign the voucher. The home owner would still pay the full price of the installation, but would then use the authorised voucher to recoup the £400 from the Energy Saving Trust. The installer would also need to check that the old boiler was working and G‐rated, and the replacement was A‐rated. If the applicant was over 60 they could replace a broken boiler and still qualify for the scheme.
Once installation was complete, the following stage was that the applicant would send the voucher and related paperwork (such as receipts or invoices) to the Energy Saving Trust in order to claim the £400 money back. The voucher would then be processed within 25 working days of the Trust receiving the paperwork and paid directly into the householder‟s bank account.
Contact Information
Caroline Taylor
SBGI Utility Networks
Camden House
Warwick Road
Kenilworth
CV8 1TH
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