Baxi asks the government to reduce the V.A.T on gas boilers.
Although the green deal promises to reduce the VAT on energy efficient heating components such as controls, pumps , biomass boilers etc it will NOT at the moment in time include Gas boilers. They will remain at 20%.
The government is becoming increasingly pressed to change the Green deal to incorporate new gas boiler installations by manufacturers, consumer demand, the economy and even the NHS.
The Green deal which is due to come in October 2012 will probably and eventually include boilers but at the present time it does not, Baxi one of the UK’s leading boiler manufacturers have gone further and hope all new boilers could have the lower rate of VAT 5% NOW.
In March 20111, Baxi lobbied parliament to reduce the VAT on boilers now rather than wait for the green deal to come in to play.
“A temporary cut until the Green Deal scheme that comes into effect in October 2012 would help the industry bridge a potentially difficult funding gap. The beauty of giving a quick boost to boilers is that the Government will see immediate results,” said Sarah Brook, marketing director of Baxi.
Sarah Brook, Marketing Director of Baxi points out that the reduction of VAT would encourage people to buy new efficient boiler and in turn would give the economy and more importantly the UK manufacturing market a much needed boost as most boilers are still made in the UK. They have even encourage people to sign the e-petition on the Grumble website – grumble.org.uk
It is estimated 60 % of homes in the UK have unefficient heating systems, reducing the VAT on new highly efficient boilers would encourage home owners to upgrade their existing boilers as it would mean lower gas consumption and lower energy bills. It is estimated home owners could save up to £240.00 per year on energy bills with a new efficient SEDBUK band A boiler.
The NHS is reportedly spending £145million on patients (according to the Chartered institute of environmental health) who have become ill because of poor heating arrangements. They found that 655,800 homes rented by landlords or letting agencies are so cold they are officially a health hazard.
“It’s shocking that people still have to put up with cold rented homes that make them sick and cost a fortune to heat that decent insulation could help avoid while the NHS spends millions every year to treat the illnesses caused by the problem.” Said David Timms Friends of the Earth’s warm homes campaigner.
It is understood that landlords are unwilling to replace inefficient boilers in the present climate because it costs to much to replace.
The Chartered Institute for Environmental Health’s head of policy, David Kidney, said:
“The £145 million that the coldest rented homes cost the NHS each year is just the tip of the iceberg.“