UK government officially delays “boiler tax”

Energy Security Secretary Claire Coutinho has announced that the implementation of the Clean Heat Market Mechanism (CHMM), which has been dubbed the “boiler tax”, will be delayed by a year until 2025.

The CHMM would have obliged boiler manufactures to replace 4% of their sales, rising to 6% in year two and then gradually increasing to 25%, with low-carbon alternatives or face penalties of £3000 for every missed installation. Boiler manufacturers like Worcester Bosch have criticised the scheme as setting quotas that are unrealistic given the expected market for such installations, especially as installations in new-build properties do not count toward the quota. This has led to manufacturers incorporating the expected penalties into their pricing structures, raising the cost of the average boiler by about £120.

In a blog post in December last year, Worchester Bosch said it would not benefit in any way from the price increase, nor would it grow the market for alternative forms of heating. It added at the time that it would keep track of what it called the “CHMM levy” and reduce or remove it should the policy change.

Despite being postponed for a year, manufacturers will still be expected to meet the second-year objective of 6% of sales next year, potentially increasing the cost of a new gas boiler by around £200. To get ahead of this, Xgas can perform a boiler installation in Chester and other locations around the Wrexham area. Speak with our helpful team to learn more about the cost and financing options.