Warning as households face £120 extra bill for upgrading boilers – will you be impacted?

HOUSEHOLDS buying new boilers are set to pay £120 in added costs after manufacturers said they will miss heat pump targets.

The Government will start fining manufacturers from April if they are not fitting enough heat pumps under the Clean Heat Market Mechanism (CHMM) scheme.

The scheme is designed to lower the UK’s carbon emissions and encourage firms to install more of the devices.

Heat pumps are a greener option than gas boilers which are expected to be banned from 2035.

They work like a reverse fridge and can be cheaper to run than traditional gas central heating, but can be more expensive to install at between £5,000 and £8,000.

The Government recently increased the grant incentive it’s offering households to fit the devices from £5,000 to £7,500 – known as the Boiler Upgrade Scheme.

Manufacturers have said they are already missing CHMM targets, and will be forced to pass on the additional costs to customers .

Boiler maker Baxi said this will increase the cost of boilers by £120, Ideal by £110 and and Vaillant by £95, according to the publication.

Worcester Bosch said the cost of its new boilers will go up by £120.

The cost of having a new boiler fitted typically costs between £1,500 and £5,000, depending in the model you go for.

A Department for Energy Security and Net Zero spokesperson told The Sun: “Targets are realistic and fully achievable, providing industry with flexible options to support our ambition to make heat pumps easy and affordable to install.

“We’ve also made it easier to get a heat pump by increasing the Boiler Upgrade Scheme grant by 50% to £7,500 – tripling applications in the week after it was rolled out.”

The Sun approached Baxi, Ideal, Worcester Bosch and Vaillant for a comment.

How to get help paying for new boilers

Hard-up households can get grants to help cover the cost of new boilers through the Energy Company Obligation 4 (ECO4)

The scheme was designed by Government to tackle fuel poverty and help reduce carbon emissions.

But you will have to be on certain benefits to qualify. You could be eligible if you receive one of the following:

• Child Benefit
• Pension Guarantee Credit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Income Support
• Tax Credits (Child Tax Credits and Working Tax Credits)
• Universal Credit
• Housing benefit
• Pension credit saving credit

Bear in mind though, just because you are eligible, that doesn’t mean a supplier is obliged to act.

And you might have to help pay towards the cost of having a new boiler installed. You will also have to prove you are on a low income.

More details on eligibility can be found on energy regulator Ofgem’s website.

Meanwhile, there is a select list of energy providers signed up to the Energy Company Obligation. The full list is:

• British Gas
• E Ltd
• E.ON
• Ecotricity
• EDF
• Octopus Energy
• Outfox the Market
• OVO
• Scottish Power
• Shell Energy
• So Energy
• Utility Warehouse
• Utilita Energy

Even if your energy company isn’t included above, you might still be able to get a grant through one of them.

You can contact one of the above firms to apply.

Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.

Plus, you can join our Facebook group to share your tips and stories.