Updated March 2024
As reported by the BBC the ‘Boiler Tax‘ has been delayed until April 2025, however with so much uncertainly, this may get pushed back even further.
After all, there is the small matter of a general election looming.
Celsius Plumbing and Heating are proud to be one of the trusted sources of information on the ‘Boiler Tax’ and will continue to keep up with any developments as they are reported.
_________________________________________
Original Article – 5th February 2024
In a surprising turn of events, the UK government is reconsidering its stance on the controversial ‘boiler tax’, the Clean Heat Market Mechanism (CHMM) levy designed to reduce carbon emissions by encouraging the adoption of more eco-friendly heating alternatives. Claire Coutinho, the Energy Secretary, is now considering scrapping the ‘Boiler Tax’.
“Boiler manufacturers have saddled families with indefensible price hikes – this is not right,” a government source told the Sunday Times. “We’re looking again at the policy, and expect manufacturers to do the right thing and remove their price hikes immediately.”
First reported in The Guardian this could lead to the scrapping of the tax, a move that has the potential to significantly impact boiler sales, especially in regions like Edinburgh and the Lothians.
But as the dust settles, questions arise about the financial implications for homeowners, particularly concerning the costs of gas boilers and whether those who have already paid the additional charges will see any form of reimbursement.
The shift away from a Boiler Tax: what it means
Understanding the policy change
The proposed “boiler tax” aimed to penalise boiler heating manufacturers for not meeting eco-friendly installation targets, however this simply led to increased prices of new gas boilers by the manufacturers, making it more expensive than ever to buy a gas boiler in Edinburgh and The Lothians.
The government’s reconsideration of this approach in favour of a quota system is expected to impact the boiler market significantly, potentially stabilising or reducing the cost of gas boilers for homeowners.
Boiler pricing and policy changes
When the idea of a CHMM boiler levy (tax) was initially announced, boiler prices shot up. Worcester Bosch, a big name in the game, increased their prices by £120 plus VAT, blaming the expected costs from the new tax.
This move, aimed at dealing with the proposed Clean Heat Market Mechanism (CHMM), ended up putting extra financial weight on homeowners thinking about getting or replacing gas boilers. To find out more about the Clean Heat Market Mechanism (CHMM) boiler levy read our previous blog here.
Now, with whispers that the government might ditch the boiler tax, everyone’s wondering if companies like Worcester Bosch and Ideal Heating will cut their prices back down. This is huge for people in Edinburgh and the Lothians who may be considering buying a new boiler soon.
If the policy U-Turns, we should see boiler prices drop, making heating homes more wallet-friendly. But, it’s up to the politicans and manufacturers to make the next move.
The question of refunds for the Boiler Tax
Another pressing concern for homeowners is what of those who have already paid the additional £120 boiler tax as part of their boiler purchase?
This issue touches on the broader themes of fairness and consumer rights, raising questions about the responsibility of manufacturers to reimburse customers should the policy be officially scrapped.
The argument for refunds is strong, grounded in the principle that consumers should not be penalised for policy changes that occur after their purchase. However, the logistics of issuing refunds, including identifying eligible customers and determining the mechanism for reimbursement, present significant challenges.
Homeowners and consumer advocacy groups may need to engage in discussions with manufacturers and possibly the government to ensure that those affected by the preliminary enforcement of the boiler tax are not left at a financial disadvantage.
What’s next? Navigating new boiler pricing
As homeowners in Edinburgh and the Lothians await further developments, several steps can be taken to navigate the uncertain landscape of boiler sales and pricing:
Stay Informed:
Homeowners should closely monitor announcements from both the government and boiler manufacturers regarding policy changes and their impact on pricing and potential refunds. If you have recently bought a new boiler, speak to your installer.
Seek Professional Advice:
Speaking with your local boiler heating specialist or contacting your boiler manufacturer can provide clarity on your options and any recourse available regarding refunds or compensation. Contact your local MP who may be able to offer more up to date news on the matter.
Push for Openness:
Homeowners, heating professionals and local MP’s should urge boiler manufacturers to be open about price changes and refund options. More will become clearer as the weeks / months move on.
Now, more than ever, it’s crucial to give your gas boiler the TLC it deserves.
A timely boiler service could end up saving you quite a bit of money. If you’re thinking it might be time for a boiler check-up, why not explore our service plans? They’re a great way to make sure your boiler is running both efficiently and safely.
Wondering about getting a new boiler?
If your current boiler is simply on its last legs and you cannot wait any longer, it might be time for an upgrade. Feel free to get in touch to learn more about your options for a new boiler.
When it comes to financing, don’t sweat it.
We offer a variety of plans to make the cost of a new heating system more manageable. Our top pick? Enjoy 2 years of 0% finance, making it easier than ever to keep your home warm and cozy.
Celsius conclusion
In short, at the time of writing this industry update, the news of the U-Turn is very hot off the press, but keeping your home warm and making smart choices about your heating system doesn’t change. With all the changes happening in government policies and prices, it’s good to keep up-to-date and think about what’s best for the long run.
Whether it’s getting your boiler checked to keep it running smoothly, thinking about switching to a greener option, or figuring out how to pay for a new system without breaking the bank, Celsius has got your back.
Our team are here to offer advice, great service, and flexible payment plans. Making the right decisions now can make your home more comfortable, save you money, and help the planet too. Get in touch today!
Michael
Categories:
Boilers News