A new government policy, the Clean Heat Market Mechanism, has resulted in many boiler companies increasing their prices at the start of the year due to the new ‘boiler tax’ or ‘boiler levy’. Although a step in the right direction for the development of cleaner heating systems in the UK, this could mean additional costs of up to £120 per month for households.
To help combat rising bill costs, boiler installation experts BOXT is offering a January Price Freeze on their boilers to help households save money and pay zero boiler tax this month.
What is the Clean Heat Market Mechanism?
The Clean Heat Market Mechanism (CHHM) is a government policy due to start in April 2024, aiming to improve energy efficiency in homes and meet carbon emission targets by increasing the number of heat pump installations across the UK. If the target isn’t met, manufacturers will be fined.
As a result, ahead of the policy’s start date, many boiler manufacturers – including Worcester Bosch, Baxi, and Valliant – have upped their prices across their boiler ranges in anticipation of the impending fines. In some cases, this can be as much as £120 extra per boiler.
Commenting on the Clean Heat Market Mechanism, BOXT’s founder, Mel Butler, says, ‘Whilst the move to cleaner heating in the UK is something we are absolutely supportive of, the people who are ultimately paying with this policy are homeowners.’
She notes that lower-income households, in particular, who are looking at upgrading to a new boiler with the hopes of cutting bill costs and saving energy at home are now facing as much as a 10% increase on entry-level boilers.
So, what options do you have right now? Luckily, BOXT is offering a January prize freeze with zero Clean Heat Market Mechanism levy to pay on their boilers this month.
BOXT January price freeze
Recognising the concerns surrounding the new Clean Heat Market Mechanism and the additional costs that come with it, BOXT is currently running a January price freeze allowing households to save as much as £120 on a new A-rated boiler with zero boiler levy to pay.
Installation dates are available up to three months in advance so households can buy now and subsequently book the boiler installation date in April, allowing for more flexibility.
Alternatively, if the launch of the Clean Heat Market Mechanism has you keen on looking into whether heat pumps are worth it ahead of the gradual switch to these smarter heating systems, there are plenty of heat pump grants and schemes worth browsing. In fact, you might not even know it, but your home could even be eligible for a free heat pump from Octopus Energy.
But for now, our January win is knowing we’ve got a shot at curbing that new steep boiler tax – even if it’s just for this month.