Boiler scrappage scheme

What is the boiler scrappage scheme?

The boiler scrappage scheme will allow up to 125,000 households with inefficient boilers to claim £400 towards the cost of replacing them with an efficient boiler.

Chancellor Alistair Darling announced plans for the boiler scrappage scheme - which is similar to the car scrappage scheme launched in May 2009 - in his pre-budget speech in December 2009. 

The aim of the boiler scrappage scheme is to 'upgrade household heating systems to cut carbon, save money on fuel bills and sustain work for the heating industry' by encouraging households with inefficient boilers to replace them with new, A-rated boilers. 

The £50m boiler scrappage scheme is limited to 125,000 households - but around 3.5m homes are estimated to be eligible, so you'll need to get in quickly.

Thinking about replacing your boiler? Consult our independent boiler reviews to find which boilers are Which? Best Buys.

Who is eligible for the boiler scrappage scheme?

From 5 January, 2010, homeowners, private tenants or private landlords in England with a working boiler with an efficiency rating of G (or equivalent) can apply through the Energy Saving Trust (EST) for a voucher entitling them to £400 off the price of a new, modern A-rated boiler, or a renewable heating system like a biomass boiler or a heat pump.

If you're aged under 60, the G-rated boiler will need to be the main source of heat for your home and still working. If you're over 60, the boiler does not need to be in working order for you to be eligible for the boiler scrappage scheme.

Who can't apply for the scrappage scheme?

If your boiler is rated between A and F, you will not be able to apply for the £400 voucher.

The boiler scrappage scheme is not currently running for homes in Wales, Scotland or Northern Ireland. Boiler installers and manufacturers, local authority registered social landlords, and housing associations are not eligible to apply for the boiler scrappage scheme discount.

To register for the boiler scrappage scheme, contact the EST

How to apply for the boiler scrappage scheme

Find out if your boiler is G-rated for energy efficiency

As a general rule of thumb, if your gas boiler has a permanent pilot light or is over 15 years old, or if it's oil-powered and over 25 years old, it's likely to have a G rating, or lower. If you're unsure, call the Act on CO2 helpline on 0800 512 012, or take the boiler scrappage scheme eligibility test.

Obtain multiple quotes from a boiler installer

Shop around to find the best deal for a new boiler and installation from a professional with Gas Safe Register or equivalent accreditation. Take a look at our review of boiler servicing companies and consult Which? Local for recommended boiler installers in your area.

Register your details

Once you've decided which boiler and installation service to go for, register your details with the EST by calling 0800 512 012 or emailing boilerscrappage@est.org.uk. To receive a voucher you'll need to provide:

• your name
• your address
• the brand and model of the boiler being scrapped
• the company, address and contact details of the installer
• the type of replacement boiler to be installed i.e. gas, biomass
• date and confirmation of quote for the installation of your new boiler. 

When will you receive your boiler scrappage scheme voucher?

You'll receive your £400 boiler scrappage scheme voucher from the EST around 10 days after applying. You'll need to use your boiler voucher within 12 weeks of the issue date, otherwise the voucher will be reallocated. No boiler scrappage scheme vouchers will be sent out before 18 January.

The boiler voucher will not be valid if you go ahead with your boiler installation work before you receive the voucher.

How do you redeem your £400 voucher?

Once you've received your boiler scrappage scheme voucher, you can proceed with the boiler installation. You'll need to pay for the complete work upfront yourself, then send the boiler scrappage scheme voucher and invoice to the EST - you should receive your £400 payment within 25 working days of the EST receiving this.

Get quotes from a number of different boiler installers

How much does a new boiler and installation cost?

According to the Heating and Hot Water Industry Council (HHIC), the average cost of a boiler and installation is around £2,500 - but costs can range significantly according to the boiler model and company you choose, and the amount of installation work required. 

When we took a snapshot of boiler installation costs in 2009, we compared British Gas quotes against several independent central heating engineers and found it charged up to twice as much as the lowest priced independent boiler engineer for the same job.

Assuming you're quoted £2,500 for your new boiler and installation, and receive £400 off as your boiler scrappage discount, the overall payback time for your boiler works out at around nine years when you factor in energy bill savings of up to £235 a year (which is what the EST estimates you'll save by replacing an inefficient boiler and fitting heating controls). 

If you're looking to reduce your energy bills, topping up your loft insulation or getting cavity wall insulation could offer a cheaper option with a speedier payback time.

What other boiler discounts are available?

Additional boiler discounts for households upgrading inefficient boilers through the scheme are also available.

• British Gas will match the government's £400 discount with an additional £400 off the price of a British Gas boiler installation - find out more details on the British Gas boiler offer. Alternatively you could consider using your £400 voucher in conjunction with a separate British Gas deal, running until 28 February, that could offer you a discount package it claims is worth £752. While you can use your EST voucher with this deal, you can't get British Gas's additional £400 boiler discount as well.
• Npower will continue its own boiler scrappage discount scheme, also offering an additional £400 off the price of a Npower gas boiler installation - find out more details on the Npower boiler offer.

As our snapshot investigation into boiler installation costs showed, independent boiler installers may still offer a cheaper option overall. Pete Tynan from Which? Local recommends shopping around and getting quotes from several different boiler installers.

He says: 'Ask friends and family or look on Which? Local for recommendations for reliable traders. Always get at least three quotes for boiler installation and make sure they include all costs including any call-out fees. Don't be taken in by any headline discount figures - look at the total price of the boiler and labour charges.'

The Warm Front scheme can help certain households in England with the cost of a new boiler or other energy efficiency measures - with grants of up to £3,500 available. Check to see if you're eligible for this grant before applying for the £400 boiler scrappage voucher, because you can only apply for one government scheme.

Which boiler should I choose?

Which? has independently reviewed over 50 different boilers and recommends eight Which? Best Buy boilers, plus we've reviewed some boiler servicing companies and rated gas boiler brands. 

We've also got more information on different types of boilers, including condensing boilers, and have advice on how to cut your heating costs.

What's the Which? verdict on the boiler scrappage scheme?

It is worth taking up the boiler scrappage offer if you have a very old boiler and are in the market for a new one - but you'll need to act quickly, as the boiler scrappage scheme is only available to a limited number of the households eligible for it. 

Unfortunately the boiler scrappage scheme only helps with a small part of the total cost, including installation, of a new boiler - so if you were not already thinking of replacing your boiler it may make more financial sense for you to look at insulation measures first. 

If you're looking to reduce your energy bills, topping up your loft insulation or getting cavity wall insulation could offer a cheaper option with a quicker payback time.