Households could face paying close to 14 per cent of their salary as part of the so-called “boiler tax”, as the Government tries to roll out heat pump installations.
Last year, the Government announced boiler manufacturers would be charge for missing heat pump installation targets.
Manufacturers are expected to hike their prices by up to £120 plus VAT to cover the costs of installing these devices.
Britons are being encouraged to move from traditional gas boilers to heat pumps in a bid to slash carbon emissions.
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Households are being warned about the pending ‘boiler tax’
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The cost of boiler installations before the “boiler tax” stood at £1,944, according to Boiler Cover UK.
The organisation has compiled a list of the British counties that will be worst-hit by the implementation of the “boiler tax” this year.
In order to determine the impact of the levy on UK households, Boiler Cover UK considered both the initial installation cost and the annual running cost of a gas boiler, totalling £1,080 for the latter.
For the first year, these combined costs were contrasted against the average annual salary in each county to determine how much people would be “taxed”.
Here is a breakdown of what UK counties will be pay towards the “boiler tax” as a proportion of their salary:
Mark McShane, an expert in Sustainable Heating Solutions at Boiler Cover UK, called for policymakers to have greater consideration of the consumer that will be left paying the “boiler tax”.
He explained: “While the shift towards eco-friendly heat pumps is commendable, the execution of the CHMM poses significant challenges for consumers and boiler companies alike.
“The levy, coupled with manufacturers’ price increases, threatens to place an undue burden on UK households, particularly those in vulnerable financial situations. “
The CHMM scheme will come into effect for households across the country from April 2024. Recent reports suggest that the Government charges for missing targets will be scrapped later this year.
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