The boiler scrappage scheme came about after an enterprising plumber called Mick Williams of Williams & Co plumbers’ merchants started a petition and roused the old Labour Government to do for the heating industry, what they were doing for the car industry.
Critics saw the car scrappage scheme more as a flag waving exercise by a recession entrenched administration, than a genuine attempt to give a good deal either to the flagging car industry, or to the consumer. But, as it finished, it was deemed a success. Likewise the boiler scrappage scheme, which was greeted with mutterings of discontent, as consumers wondered how much a grant of £400 was really worth in an average installation cost of £2,000.
So what was the impact of the boiler scrappage scheme and should it be confined to the scrap heap itself?
First launched in January, 2010 the English boiler scrappage scheme was based on a simple voucher idea. Anyone with a “G” rated boiler (and there’s over four million of them around) could apply to the Energy Saving Trust for a voucher worth £400 off a new “A” rated boiler, or indeed, off a renewable heating system, such as a biomass boiler. The voucher was redeemed once an acceptable gas-safe registered installer finished the job and the invoice was paid.
The principle behind the boiler scrappage scheme was simple. On the one hand, encourage people to throw-out their old, inefficient boilers, and replace them with shiny, efficient boilers. On the other hand, help the 130,000 installers and 25 boiler manufacturers in the UK who were struggling for work and orders.
And it worked. The scheme paid out grants to 125,000 households worth a total of £50 million. Similar schemes have started in Scotland and Wales, although both have different conditions. And work was provided for a down-at-heal heating industry.
Things were also helped when two of the biggest UK energy companies, British Gas and npower, matched the £400 voucher with £400 of their own; further sweetening the package for a number of people.
More importantly, 125,000 old boilers have been ripped out and replaced with new models, which says the Government’s own figures, will help households cut their energy bills by around £225 a year. Furthermore, replacing the boilers should save around 150,000 tonnes of C02 a year, which is the same as taking 45,000 cars off the road.
So back-slapping and handshakes all around. Well, not quite, as certain industry figures queued up to throw buckets of cold water over the scheme.
Top of the complaints heap was the accusation that although modern condensing boilers are more efficient, they are less reliable. So you had the situation where people with perfectly functioning boilers, were ripping them out (many designed to last for ten, or 15 years) and replacing with boilers which might only last five to six years. They can also be a problem to operate and expensive to repair when they do breakdown.
Soon postings on forums were showing that many people are unhappy with their new condensing boilers and that certain models were becoming notorious as unreliable and expensive to maintain. One particular fault emerged over the winter when the boiler drain pipes (which run to the outside of the property and take away the moisture created in the flue) became frozen. Once this happens, the boiler is designed to shut down and the heating goes off. Before this problem was identified, panic ensued with a number of people and engineers were called out to rectify (and pay for) a problem that can be solved by pouring a kettle full of hot water over the pipes to de-ice them and clear the blockage.
Boiler manufacturers are keen to point out that many of the problems associated with “A” rated condensing boilers, especially the first few models, have now been ironed out and generally they are more reliable, and enjoy longer life spans.
On an economic level, the scheme’s detractors were quick to point out that only the comparatively well off could afford the scheme. It is not means tested and even with the grant, many could not fork out the average £1,600 needed to pay for the installation, or can even cashflow the £400 until the voucher was redeemed after payment of the invoice. What’s more, if a boiler needs replacing after say five years and as a result of the installation a person is saving some £250, they’re unlikely to recoup the cost on the fitting and are at risk of being seriously out of pocket.
Yet despite the problems, the scheme can only be regarded as a first step in the process of making the nation more efficient in its heating methods.
Arguably, a new scheme now needs to be introduced that learns lesson from the previous one. In the long-run, keeping boiler installers in work and helping boiler manufacturers pay their workforces and get through the down-turn, has to be cheaper than benefit payments.
But asking for more money for such schemes in today’s cost-cutting environment is a bit like Oliver asking for more food, but it has to be made available.
The vouchers need to be means tested and graduated to incentivise as many people as possible to replace the country’s most inefficient boilers, with new models that are supported by longer warranty and after-sales support packages.
It’s the old argument of course. Many ‘green’ initiatives do not stand up to full economic scrutiny, but they are part of the bigger plan; the ambition to reduce the country’s C02 emissions and thereby help the world breathe a little better.
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