Boiler Scrappage Scheme PDF Print E-mail

I welcome the motion. Along with the Chairperson, I acknowledge the  Minister's commitment to the matter since the motion was tabled.

If we are serious about reducing fuel poverty and co2 emissions, it is time for Northern Ireland to consider a boiler scrappage scheme similar to that initiated in England. The scheme there allows households with the least efficient boilers to claim £400 towards a new boiler. That scheme is targeting around 125,000 households who own or privately rent their homes. If a such a scheme were introduced here, and I hope that it is, it would have the potential to benefit around 75,000 homes throughout Northern Ireland.

The scheme is designed to encourage people to replace inefficient boilers that are likely to be around 15 years old. New boilers have rated efficiencies of 90% or more, meaning that they use less fuel, which results in lower CO2 emissions and running costs. Renewable heat technologies do not use fossil fuels. If we upgrade a G-rated boiler to an A-rated boiler, household heating bills should drop by about one quarter, which is an average saving of around £235 a year.

In England, people under 60 years of age can apply for the scheme if their boiler is in working order and it is the main source of heat for their home. Those who are over 60 years of age can apply for the scheme regardless of whether their boiler works or not. However, it still needs to be the main boiler used in the home. I am not sure whether I agree entirely with those criteria. I see no reason why people over 60 years of age should be eligible for the scheme if their boiler is in perfectly good working order. However, that is a matter for England.

To apply, one must either be a homeowner or a private tenant. Landlords of multiple properties can apply, as long as each voucher is assigned to a different property. Registered social landlords and housing associations cannot apply as they are covered by alternative support in the English scheme.

Replacing old boilers has the potential to slash household energy bills and carbon emissions, while providing an important boost to our heating industry. It will help to secure jobs in small and medium-sized businesses that form a vital component of Northern Ireland’s low-carbon economy. The scheme will show how our Government continue to invest in our industries and in jobs for the future.

Given the fact that Northern Ireland has the highest rate of fuel poverty in the United Kingdom, with one in three households suffering its effects, I urge the Minister to consider the proposal seriously and to introduce it sooner rather than later. Our vulnerable households need most help. Higher energy prices have led to an increase in the number of households in fuel poverty. There are many benefits to Northern Ireland’s economy if we reduce our heating costs. Effectively, if people are not paying for more gas or heating oil, that money is at their disposal and can help the local economy. Small companies and businesses here are struggling for sales to survive, and the scheme has the potential to help them to boost their sales. The collapse in house building has hit our heating industries hard, and this is their chance to secure work. It will also help our unemployment figures, and it has the potential to increase the number of apprenticeship placements. Companies will be encouraged to become more competitive, with special offers involving complementary deals to entice people to use them when scrapping or replacing a boiler. However, we need to be mindful of the disadvantages of the scheme.

Some companies in England have taken advantage of the scheme and have overpriced boilers and installation work. That puts our vulnerable people at even greater risk, and it makes a mockery of the proposal. Some modern boilers are not built to last in the way in which old boilers were, and it has been known for them to burn out after 10 years. Some boilers that are 15 years old work perfectly well and, therefore, there would be no need for some people over 60 years of age to replace their boiler.

I encourage the Minister to be mindful of those flaws when looking at ways in which the scheme can be implemented. This winter alone has taken its toll on those who cannot afford to heat their home sufficiently or, in some cases, at all. Northern Ireland still has at least 1,000 cold-related deaths every winter, and the figure is likely to be nearer 1,300. Being fuel poor seems to be worse than just being poor. To make matters worse, it will be 30 years before we address all the households that need to be in the warm homes scheme. The pace of the present assistance simply is not fast enough, and I urge the Minister to look at the daunting figures.

The message is blunt: if people cannot afford to keep warm, they will get ill and die of cold. It is time to figure out fuel poverty once and for all, and the scheme is another way to help. We simply cannot wait any longer. I had other comments to make on the amendment, which has now not been moved. I support the motion.