Households could be hit with ‘punishing’ £140 boiler charge as Government pushes ahead with green targets

Comment now Next BRITS buying a new gas boiler could be clobbered with an extra £140 charge hidden in the price, as the Government looks set to toughen up its controversial heat pump rules. The scheme works by forcing boiler manufacturers to sell a set proportion of heat pumps every year, or face hefty fines, which bosses then quietly bolt onto the cost of ordinary gas boilers for everyday customers. Right now, that figure sits at around £100 a boiler, but ministers are now looking at ramping up the pressure on manufacturers so dramatically that the sneaky surcharge could jump to £140. Energy Secretary Miatta Fahnbulleh is reportedly considering more than doubling the sales quota imposed on manufacturers, according to The Telegraph . Advertisement Sign up for the Money newsletter Thank you! Email address Please provide a valid email. Your info will be used in accordance with our Privacy Policy You'll now receive top stories, breaking news, and more, straight to your email. This would take it from 8%to 18% of their total output, with the overall goal rising to 236,000 heat pump installations a year by 2030. Firms that fail to hit their quota face fines of up to £500 per missing heat pump, costs that critics say will inevitably be passed straight down the line to households just trying to replace a broken boiler. Read more in money HANDY WORK The five-step checklist to save £292 on your energy bills in just half an hour MONEY PIP-LINE One in six PIP claimants have NO extra costs — as gov urged to SLASH benefit The timing has raised eyebrows, given that demand for heat pumps has been sluggish, leaving manufacturers more likely than ever to miss their targets and get stung with fines. Figures from the UK’s own climate watchdog show just 52,000 heat pumps were installed in homes last year, nowhere near the pace needed to meet Labour’s wider ambition of 450,000 installations annually by 2030. Part of the problem is cost. A standard gas boiler costs around £3,000 to fit, while a heat pump costs roughly £13,000, dropping to around £5,500 once a £7,500 Government grant is factored in. Most read in Money PAY UP Half a MILLION workers to get pay rise of over £1,250 a year from today FEEL THE BURN The four things you need to do with your money NOW before the Budget CHILD’S PAY Eight side hustles you can do on the school run that pay up to £600 a month MONEY PIP-LINE One in six PIP claimants have NO extra costs — as gov urged to SLASH benefit Mike Foster, chief executive of the Energy and Utilities Alliance (EUA), which crunched the numbers behind the £140 figure, said hiking the penalty made no sense while heat pump demand was falling. He said: “At a time when demand for heat pumps is falling, only the economically illiterate would suggest that supply is the problem. Advertisement “The heating industry will have no choice but to pass this additional cost on to the consumer; ultimately, they are the ones who will suffer because of this net zero zealotry.” Campaigners say families are effectively being taxed for a green policy they have no control over. Shimeon Lee, policy analyst at the TaxPayers’ Alliance , said: “Ministers are playing a dangerous game with family finances by ramping up this stealth tax on hard-working households. “Penalising boiler manufacturers for failing to meet unrealistic targets won’t magically boost heat pump demand. “Instead of doubling down on net zero zealotry that’s punishing taxpayers, the government should bin the boiler tax and focus on keeping energy bills down.” Advertisement But the Department for Energy Security and Net Zero insists manufacturers do not have to pass the fines on to consumers. RECOMMENDED STORIES A spokesman added: “The Clean Heat Market Mechanism provides the certainty needed for manufacturers to invest in the UK’s heat pump market with confidence, while helping to drive down installation costs for consumers. “Britons are showing record demand for heat pumps, and our scheme gives companies the flexibility to take advantage of the rush for heat pumps, which can save families money on their energy bills .” Switch energy bills automatically and save £268 a year * If you click on this link we will earn affiliate revenue Worried about the cost of energy? You can save £268 a year on average by letting free tool Switchcraft switch your bills for you. Find out about the best energy deals for you by simply putting in your address, and Switchcraft will look up your supplier and usage. Then let the tool handle the switch. Once completed, rest easy knowing you’re on the best deal. When you can save by switching again, Switchcraft will send you the details. Its automated technology will only switch you in the last seven weeks of any fixed deal, meaning you won’t be charged exit fees. SIGN UP FOR FREE HERE Comment now