Have you heard of the boiler scrappage scheme and are you wondering how to take advantage of it?
Over half of the average monthly energy bill is spent on home heating, and if you have an old, inefficient boiler, that could add as much as £275 to your annual bill.
The UK government boiler scrappage scheme was introduced for this very purpose – to help UK households upgrade their old non-condensing boilers for modern A rated condensing boilers that are now at least 92% efficient.
Sadly, the boiler scrappage scheme is no longer operating and has been replaced by alternative schemes, such as the Boiler Upgrade Scheme (BUS).
What was the Boiler Scrappage Scheme (UK)?
As mentioned, the boiler scrappage scheme was in operation from 2009, but there was a finite amount of funding and it was not renewed after it ran out.
In total, the fund had a budget of £50 million with the aim of helping 125,000 households in England with a G-rated boiler upgrade to a modern condensing boiler.
How much did households receive?
Eligible households could be entitled to a voucher of £400 towards the cost of replacing an old G rated boiler with a modern A rated condensing boiler.
The £400 voucher was delivered to households in the form of a rebate by the Energy Saving Trust. While the big six energy companies offering to match the amount also paid the additional £400 via rebate too.
This meant that households could received £800 in total, £400 from the Energy Saving Trust and an additional £400 from their energy provider.
Who qualified for the boiler scrappage scheme?
The purpose of the scheme was to assist households and landlords to upgrade their old boilers to modern condensing boiler units.
As a result, the £400 rebate voucher was only available to properties that had a G rated non-condensing boiler.
A G-rated boiler has the worst efficiency rating under the ErP, this means that much of the energy they use is wasted via the exhaust fumes, instead of being used for heating.
This can result in a decrease in the overall efficiency of the boiler, meaning that it will need to work more often in order to produce the same heat output.
Which other free boiler schemes are available?
If you are not eligible for the Government ECO3 scheme, then it is worth checking if you meet the criteria for other schemes such as the Boiler Upgrade Scheme, or the Affordable Warmth Obligation initiative.
As well as helping to replace boilers, this scheme can also help with repair costs and home energy efficiency upgrades, for example, updates to the insulation in your home such as adding insulation to the loft or cavity walls.
For this scheme, as well as the criteria mentioned above, typically applicants must also have a household income of less than £20k per year in order to be accepted.
This scheme is also available to pensioners who live in social housing, as long as the boiler in question has an energy efficiency rating of either E, F, or G.
What size boiler is right for your home? If you are thinking about a combi boiler, it is largely determined by the number of radiators in your home. Check out our complete guide to new boiler installation here if you are wondering about the best type of boiler for your home.
How much may a new boiler cost? Are you considering converting from a conventional to a combi boiler? Use our boiler installation cost calculator to get an estimation.
Boiler Upgrade Scheme (BUS)
As previously mentioned, the ECO3 scheme is one of two forms of boiler funding available in the UK. The second is the BUS.
The BUS scheme provides grants to encourage property owners to replace existing fossil fuel heating systems with low carbon, more efficient heating systems.
These include ground source heat pumps, air source heat pumps, and biomass boilers in limited circumstances.
The scheme operates similarly to the Green Homes Grant Scheme. The government contributes a fixed sum towards the upfront costs of low carbon heating technologies, and the property owner pays for the rest.
The scheme opened for grant applications on 23rd May 2022 and will run up to 2025 with a £450m funding confirmed for the three years.
You’ll benefit from a 0% VAT rate on the purchase and installation of the low carbon heating technologies.
Learn all about the different types of boilers, including condensing boilers, LPG boilers, oil boilers, Opentherm boilers and calculating boiler size in our guide.
Winter Fuel Payments
Another scheme that is available to pensioners is the Winter Fuel Payments that are paid out to those above 65 years old to help financially with heating bills.
To be eligible, you either need to get the state pension or another type of social security benefit.
The scheme offers between £100 and £300 to help you pay your heating bills. In 2019-2020, around 11.4 million people received this payment in the UK, the European Economic Area, and Switzerland.
If you are eligible for this initiative, you should be contacted automatically, but it is worth checking with your supplier if you have not received any help.
Rent a Boiler Scheme
The rent a boiler initiative is a scheme that many energy companies are now offering to allow you to pay for a new boiler in affordable instalments.
Whilst this will not save you any money and could cost you extra in interest over a period of time, it is an option for those who are unable to replace their boiler upfront but could afford the monthly repayments comfortably – especially if you do not qualify for any of the Government schemes.
If you want to learn about the best way to heat your conservatory, you may want to check out our guide on which electric heater is cheapest to run, you may be surprised to find out that it is not a halogen heater.
Who qualifies for a boiler grant Conclusion
If you have an old boiler that is nearing the end of its life or you are currently without heating, then it is well worth applying for the ECO3 (now ECO4 scheme).
If you don’t think you will be eligible for the ECO scheme, you may want to consider the Boiler Upgrade Scheme (BUS).
It’s also worth mentioning that boilers on finance schemes are also available, these are offered by some boiler installation companies and allow you to spread the cost of a new boiler over several years, enabling you to pay for your boiler in monthly increments.