This follows press speculation earlier in the month which quoted a government source suggesting the tax is to be killed off.

The ‘boiler tax’ has been in place since January, a result of the Clean Heat Market Mechanism, which fines British boiler manufacturers if they cannot install a Whitehall set quota of heat pumps in homes. Each unit below the target incurs a £3000 penalty, a cost that the manufacturers have no choice but to pass onto those who buy boilers. The boiler tax ranges between £120 and £95 per boiler.

Mike Foster, the CEO of EUA, said:  “Scrapping the boiler tax in the Budget will be welcomed by consumers and industry alike. We were encouraged by the press speculation suggesting the tax is to be scrapped and the Budget would be an ideal time to confirm it.”

“The boiler tax will hit an average of 2300 households in each constituency this year, at a time when they face a large bill to replace a broken boiler. Buying a heat pump, at nearly £14,000, is simply beyond their means so they are forced to pay this tax. Its regressive, hitting the least well-off hardest.”

“It is expected that the Chancellor will want to cut taxes in the Budget, helping hard-pressed families balance their finances. Scrapping the boiler tax will show the country that the government is serious about cutting tax. The boiler manufacturers have already said they will respond immediately to confirmation by the government and remove the boiler tax from their products.”

“The boiler tax is currently a barrier that is limiting sales of high-efficiency boilers. For a planned social housing scheme refurbishment replacing 300 old, inefficient appliances, the boiler tax means only 260 can now be replaced. That’s not good for energy efficiency, keeping bills down or reducing carbon emissions either.”

“The only people who can avoid the boiler tax are those who can afford to buy a heat pump and the Prime Minister himself said not every home is suitable for one. So, it is time to put the consumer first and confirm the boiler tax is scrapped.”