Upgrading to a greener boiler is expected to help households reduce heating costs by about a quarter and save GBP190 a year on fuel bills. Replacing 5,000 boilers will also save around 5,000 tonnes of carbon dioxide per year, heating the water for 7 million baths or heating 1,300 Scottish homes for a year.

The Boiler Scrappage Scheme will be run through the Energy Saving Scotland advice network. The advice network will issue vouchers as of May 24, 2010. The scheme will operate on a first come, first served basis and will last until all the funds have been allocated. The vouchers can then be redeemed for cash from the Energy Saving Trust once the boiler has been installed.

New boilers should be energy efficient models, certified under the Energy Saving Recommended scheme.

The Boiler Scrappage Scheme in Scotland supports the aims of 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.

Robert Burgon, director of Scottish and Northern Ireland Plumbing Employers Federation, said: “The Scottish boiler scrappage scheme will be a great opportunity for many households to upgrade their inefficient heating systems which will be costing them many hundreds of pounds each year in wasted fuel costs.

“Installing a new system will not only help the environment it will also help save money on their heating bills. Like many other industries the plumbing and heating sector has been badly hit by the recession and the scheme will prove a boost to many of our businesses.”