The Government has made a major heat pump U-turn (Image: Getty)
The Conservatives may have laid a post-election trap for an incoming Labour government, according to an energy industry expert, as the Energy Security and Net Zero Secretary delays the heavily criticised “boiler tax”.
Reacting to the news that the Clean Heat Market Mechanism (colloquially known as the boiler tax) was being put on ice, Mike Foster CEO of the trade body Energy and Utilities Alliance (EUA), lauded the move but branded it an “obvious trap” set for Sir Keir Starmer.
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The boiler tax would have meant boiler manufacturers would face fines if they didn’t match or substitute 4% of their boiler sales with heat pumps.
Industry experts warned that the measure would have hit customers hardest, as manufacturers would have to pass the cost on.
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Claire Coutinho has axed the 'boiler tax' (Image: Getty)
However, now the boiler tax has been ditched - until April 2025. If Labour were to win the next election, the tax would re-emerge early into the party’s premiership.
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Mr Foster said of the decision: “We welcome the delay in the introduction of the boiler tax, as confirmed today by the government. It ends weeks of speculation in the media.
“However, this decision is clearly political, not about heating policy. The government have set a trap for a future administration, which according to the polls is likely to be Labour, knowing the boiler tax from 2025 is likely to be around ￡200.
Sir Keir Starmer may have to make a decision on whether to introduce the boiler tax in April 2025 (Image: Getty)
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“But it is an obvious trap, so obvious it has warning lights and bells attached. It could be up to Labour Ministers to decide whether to go ahead with the boiler tax, but they have been warned, the public don’t like it; it hits the least well off the hardest and the whole policy needs to be revisited before it harms British companies and British workers.”
The move comes alongside an announcement that the Government is changing the Boiler Upgrade Scheme.
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According to the Department for Energy Security and Net Zero: “Heat pumps will be cheaper and easier for families to install as part of changes to the government’s Boiler Upgrade Scheme.
“It means families could save around ￡2,500 off upfront costs, with insulation no longer required to access heat pump grants.”
Under the new plans, homeowners will have more choice in how they improve their home and will no longer have to install cavity wall or loft insulation to use the scheme, which offers grants of ￡7,500 off the cost of heat pump installation.
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