Upcoming boiler tax likely to be delayed

A system of fines that could have seen the cost of a new boiler rise looks sets to be delayed by least a year.

The Clean Heat Market Mechanism (CHMM), which has been commonly referred to as the “boiler tax”, was due to come into force this April. It was developed with the intention of encouraging boiler manufacturers to also market alternative lower carbon forms of heating by imposing fines on them if they failed to meet targets. However, it was estimated that the system would increase the cost of an average boiler by about £120 as manufacturers factored the fines into their pricing structures.

With an ongoing cost-of-living crisis, many in Parliament, the industry and the wider public have criticised the CHMM for not achieving its stated objective while imposing additional costs on consumers and businesses. It is now being reported that the upcoming financial year will now instead be treated as a “monitoring year”, whereby the UK Government will assess how gas boiler sales compare against alternative solutions. The Guardian cited a Government source as saying that it now expected boiler manufacturers to reverse price increases in response to delaying the implementation of the policy.

Gas boilers remain an effective heating solution, and upgrading a traditional boiler to a modern condensing boiler can cut your energy usage and reduce your carbon emissions. Xgas is proud to offer boiler installation in Wrexham and other towns and cities in the region, so get in touch for a no-obligation quote.