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Facing the Heat – Navigating the New Boiler Tax

As the clock ticks towards the New Year, residents across Hertfordshire find themselves at the forefront of a significant shift in home heating economics. The introduction of the Clean Heat Market Mechanism (CHMM) from 1 January 2024 ushers in what many call a ‘boiler tax, ‘ a move that will likely send ripples through the county. But what exactly is the CHMM, and how might it burn a hole in the pocket of the average homeowner?

Understanding the CHMM Boiler Levy

At its core, the CHMM is a government initiative that requires boiler manufacturers to sell a certain percentage of heat pumps alongside their boiler sales. From 2024, this figure stands at 4%, with a jump to 6% in 2025. It’s a push for greener, more sustainable heat sources, but with an unintended side effect: an estimated £120 increase in boiler costs for consumers. Let’s delve into the implications of this levy and what it means for you.

The Implications for Homeowners

It’s a cold reality for those invested in gas heating systems. The initial £120 per boiler is just the tip of the iceberg, with potential for further hikes. For those in properties where renewable solutions like air source heat pumps aren’t feasible, the CHMM can feel less like an incentive and more like a penalty.

Professional Insights: From the Manufacturers’ Mouths

Manufacturers like Worcester Bosch, Ideal Heating, and Vaillant are bracing for impact. Each has outlined how the CHMM will affect their pricing and your wallet. Despite the inevitability of these costs, there’s a shared emphasis on the need for increased consumer education and a rebalancing of gas and electricity prices.

PHP Services Conclusion

For towns steeped in history like St Albans, with many properties lacking modern insulation, the shift to air-source heat pumps isn’t just a flip of the switch. The fines looming over manufacturers will likely be reflected in your new boiler invoice from 2024 onwards.

A Fair Share of Warmth?

While a stride towards a greener future, the’ boiler tax’ also burdens those dependent on gas heating. The conversation around energy efficiency, cost-saving measures, and sustainable alternatives is heating up as we approach the implementation of the CHMM.

Call-to-Action: Join the Conversation

What’s your take on the upcoming changes? Is the financial burden on homeowners justified in pursuing a greener future, or should the government stoke the fires of renewable energy in a different way? Share your thoughts with us, and if you’re looking for professional advice or services, PHP Services is here to help you navigate these warming waters.

Want the full story? The full details of the government’s initiative can be found here.

Article by Jared Hooper MIPHE RP

Company Founder, Member of the Chartered Institute of Plumbing and Heating Engineering, a Gas Safe and OFTEC registered Plumbing and Heating Engineer with over 30 years experience.