Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
The UK government is set to ditch its “gas boiler tax” which encouraged manufacturers to encourage heat pump installation.
The “tax” required manufacturers to match, or substitute, 4% of their boiler sales with heat pumps or they could face fines of up to £3,000 for every installation they fall short by.
In an effort to offset the potential fines, gas boiler installers had started to increase their prices, which are set to increase by up to £120 in 2024.
The Times reported that energy security Claire Coutinho is set to scrap the 4% target and fines as government fines, as a form of intervention, was unlikely to prevent consumers from being hit with additional costs.
A government source told The Times: “Boiler manufacturers have saddled families with indefensible price hikes – this is not right. We’re looking again at the policy and expect manufacturers to do the right thing and remove their price hikes immediately.
