Clean Heat Market Mechanism: The New “Boiler Tax”, Explained

March 2024 Update: The government has delayed the rollout of the Clean Heat Market Mechanism (CHMM) to 1st April 2025. This is to give industry professionals more time to prepare for its launch. We’ll continue to provide information on any further developments or adjustments to come.

The Clean Heat Market Mechanism (CHMM) is a government initiative introduced to reduce carbon emissions from UK homes. It requires manufacturers to allocate 4% of boiler production to heat pump installations.

Unfortunately, the announcement of the CHMM has had a knock-on effect: the cost of new gas boilers has risen sharply, leading some to dub the CHMM a “boiler tax.” For homeowners already stretched financially, this extra cost burden is far from welcome.

At Greenstar, our goal is to help you heat your home in the easiest, most cost-effective way possible. Below, we’ll take a closer look at the CHMM, exploring how it might affect boiler prices and sharing tips on minimising any impact.

What Is the CHMM and Why Was It Created?

The CHMM is part of the government’s commitment to reach net zero emissions by 2050. It aims to encourage the transition from fossil fuel boilers to low-carbon heating systems like heat pumps, with the goal of reducing carbon emissions from household heating (which currently account for 12% of total UK emissions).

How Much Could the New Tax Increase Boiler Prices?

If you’re thinking about swapping out your old boiler for a similar model, rather than a heat pump or another low-carbon alternative, you could end up paying an extra £120 compared to previous prices. Experts predict further price increases in 2025 and beyond as carbon emission targets become tighter.

With the cost of living already putting pressure on household budgets, this extra expense on such a key appliance will undoubtedly affect many families. Luckily, there are a few ways you can reduce the impact of this levy on your expenses.

How Can You Minimise the Tax Impact on Your Finances?

If you’re happy with your current boiler, the best route is to extend its lifespan as much as possible. This will let you hold off on buying a new one and dealing with the associated tax. Here are some tips to help you achieve this:

Book an annual service with a certified technician. Regular professional maintenance keeps your boiler running smoothly, lets you catch potential issues early on, and saves you money in the long run.
Carry out basic monthly maintenance yourself, like checking for leaks in pipes and connections. Taking care of these small tasks can help your boiler last longer.
Replace worn-out parts and invest in any upgrades your boiler technician recommends. This will let you avoid more expensive repairs later.
Look into ways to improve energy efficiency, such as upgrading old pipes or heating ducts. A more efficient system means you’ll save money on fuel over time, which can help offset any future boiler tax.

Following these tips can help you get the most out of your current boiler and put off the expense of replacing it for longer.

Low-Cost Boiler Servicing in Dorset, Wiltshire, and Hampshire

At Greenstar, we’re proud to bring you some of the best rates for boiler servicing in Dorset, Hampshire, Wiltshire, and the South. We know how important it is to have warmth and hot water you can rely on, and we’re committed to keeping your boiler working its best as long as possible, with a minimum of disruption to your day-to-day life.

When it’s time for a replacement, you can trust us to install a high-performance, cost-effective boiler that’s optimised to your heating needs. You’ll be able to enjoy all the benefits of a modern energy-efficient boiler, without having to worry about breaking the bank.

Here are some of the many other reasons to choose us: