The chancellor of the exchequer announced plans for a boiler scrappage scheme in the 2009 Pre-Budget Report (PBR).  Householders will be able to claim £400 towards the cost of a new energy-efficient boiler under a scrappage scheme for old boilers announced by the Chancellor in his pre-Budget report.

Installing a new boiler can increase overall household energy efficiency, lowering gas and electricity bills over the long term. 

In his speech the chancellor said: "Each inefficient boiler adds over £200 to household bills and one tonne of carbon to the atmosphere. A quarter of all the country's emissions come from households."  The scheme will see about £200 million added to help cut carbon emissions from homes from April 2010.

The scheme would begin as soon as possible in the new year, a spokesman said, and would run until the funding was used up.  Derrick Parkes, KPMG's head of energy tax, said: "The boiler scrappage scheme will hopefully prove to be as successful as the scheme piloted in the automotive sector and will be good news for UK industry and potentially stimulate employment."