‘About to get real’: Households face £13,000 bill to replace boilers in new green plan | Personal Finance | Finance

Plans to cut carbon emissions to net zero by 2050 will put yet more financial pressure on homeowners as gas and electricity bills go through the roof.

The plans have come under fire as energy experts warn households could face huge bills to convert their heating systems.

More than 14 percent of UK emissions come from the UK’s 30 million homes and the government’s Heat and Buildings Strategy includes a string of green measures to get this down.

Gas and oil boilers will be banned from all newly built homes from 2025, in favour of electric heat pumps or renewable alternatives. 

From 2026, Ministers propose that all new domestic boilers must be “hydrogen-ready” to be easily converted from gas.

In a shock new proposal, oil boiler installations may be banned outright from 2026. This will be followed by a ban on all new gas boiler installations from 2035, which may be brought forward.

Mike Foster, chief executive of the Energy and Utilities Alliance, said the “unfair” oil boiler ban is set to hand millions £13,000 bill for replacement. 

“The proposed ban on oil boilers from 2026 is about to get real for millions,” he warned.

The Government will not force households to strip out their existing, functioning oil boilers. However, the problem will arise when an existing oil boiler breaks down or reaches the end of its natural life and needs replacing.

Foster said replacing a broken oil boiler with a new one would normally cost around £2,000 on average. “But a heat pump replacement would cost £13,000. That is an extra £11,000 the household would need to find to keep warm from 2026.”

Ministers have consulted on this issue and have yet to publish their response, but the ban is part of the Government’s Heat and Buildings Strategy. “It is due to start in 2026 and voters are not really aware of the consequences. The government is not going to pay this but homeowners.”

Foster added: “What is particularly unfair and discriminatory, is that those who live on the gas grid won’t face a ban until 2035, and then only if heat pumps have fallen to the same price as a gas boiler. 

“Those using oil or LPG, mostly living in rural areas, have no such protection.”

The Government seems intent on hitting its own support base with this plan, as many Conservative Party voters live in rural areas.

However, when the time comes to phase out gas boilers, some 24 million households who have them are likely to face the same expense.

Foster also attacked the Boiler Upgrade Scheme, which gives households £5,000 to encourage them to install air source heat pump or £6,000 for a ground source heat pump.

He called the scheme “immoral”. “It hands out pointless subsidies for the well-off to upgrade their heating at a time when millions are struggling to pay energy bills. The money and would be better spent on insulation and energy efficiency measures.”

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