Scrapping the Boiler Tax: A Win for Consumers and Common Sense
12th Jan 2026
The cost of living remains front and centre for millions of households, and energy bills are a huge part of that equation.
While the Government’s recent announcement of £150 off the average energy bill is welcome news, there’s another hidden cost that needs urgent attention: the so-called “Boiler Tax.”
Officially known as the Clean Heat Market Mechanism (CHMM), this policy was introduced under Boris Johnson’s government to encourage heat pump adoption. In theory, it sounded like a green initiative. In practice, it’s a costly failure. The CHMM fines boiler manufacturers who don’t hit heat pump sales targets—a penalty that inevitably gets passed down the supply chain and lands squarely on consumers’ shoulders.
Right now, replacing a boiler costs an extra £27 because of this policy, and that figure could rise to £36 if planned legislative changes go ahead. Multiply that by 1.5 million households replacing boilers each year, and you have a significant, unnecessary burden on families already struggling with rising costs.
What’s worse? The policy isn’t even achieving its goal. Heat pump demand remains low, leaving manufacturers with warehouses full of unsold stock. Penalising them for consumer choice is not just ineffective - it’s absurd. Even the previous government has distanced itself from the scheme.
Scrapping the Boiler Tax would send a clear message: the Government is serious about easing the cost of living. It would also show that ministers are listening to both consumers and industry experts. The heating sector is ready to work with policymakers on smarter ways to boost heat pump uptake without punishing households.
Now is the perfect moment to act. Ending the CHMM would not only relieve financial pressure on millions of families but also demonstrate that the Prime Minister’s commitment to tackling the cost of living is more than words - it’s action.
Mike Foster
EUA's Chief Executive
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