Heating industry calls on Government to scrap “Boiler Tax”
The UK heating industry has urged the Government to scrap the Clean Heat Market Mechanism (CHMM), known within the sector as the “Boiler Tax,” amid growing concerns over its impact on household heating costs.
Mike Foster, CEO of the Energy and Utilities Alliance (EUA), has written to Energy Secretary Ed Miliband asking for the CHMM to be abolished at the end of this financial year. The policy, first introduced under Boris Johnson’s government, fines boiler manufacturers who fail to meet annual heat pump sales targets.
According to Foster, the policy has inadvertently increased the cost of replacing a gas boiler without meaningfully boosting demand for heat pumps. The EUA states that the CHMM currently adds around £27 to the price of a new boiler, rising to £36 if future legislative changes proceed, affecting roughly 1.5 million households each year.
Foster said that while recent Government measures to reduce energy bills by £150 are welcome, consumers are still being hit by increased appliance costs. He warned that manufacturers are facing fines for missed targets and are passing these additional costs along the supply chain.
“This is a needless burden on 1.5 million households every year,” said Mike Foster. “Scrapping the Boiler Tax would send a clear signal that the Government is serious about easing the cost of living.”
The heating industry say they remain ready to work with ministers on finding alternative strategies to increase demand for low-carbon heating solutions without penalising consumers.
