The Energy Saving Scotland boiler scrappage scheme will give cash back to thousands of households with inefficient and G-rated boilers. Installing a greener boiler is expected to cut average household heating costs by a quarter, around GBP235 a year for a three bed semi-detached house.

Replacing 5,000 boilers is also projected to save around 5,000 tonnes of carbon dioxide per year. The Energy Saving Scotland boiler scrappage scheme will be run through the Energy Saving Scotland advice network, which will begin issuing GBP400 vouchers towards installation of an energy saving boiler.

New boilers must be certified under the Energy Saving Trust Recommended scheme and be installed within 12 weeks of requesting the voucher. The scheme will operate on a first come, first served basis.

The Boiler Scrappage Scheme is in line with the Scottish government’s forthcoming Energy Efficiency Action Plan for Scotland, which will set out a suite of policies and programs to help reduce energy consumption across all sectors.

The Scottish government said in February that it would commit in full the GBP2m, Scotland received as a result of UK government expenditure on its boiler scrappage scheme.

Additional discounts are available from a range of suppliers when boilers are installed under the boiler scrappage scheme.

Jim Mather, energy minister of Scotland, said: “There has never been a better time to get rid of an old, inefficient and costly boiler. Our scrappage scheme will offset the cost of a new energy saving boiler, helping people to live in greener homes which cost less to run.

“This scheme will also provide a stimulus for the heating industry, supporting jobs at this crucial time.”