Success for UK caravan industry as it secures exclusion of ‘Boiler Tax’ for new caravans and park homes.

Success for UK caravan industry as it secures exclusion of ‘Boiler Tax’ for new caravans and park homes.

The National Caravan Council (NCC) has made a successful representation to the Government’s  Department for Energy Security and Net Zero after seeking urgent clarification regarding the treatment of boilers sold for installation in new caravans under the Clean Heat Market Mechanism, introduced 1 January 2024.

In his letter to the NCC, the Minister of State for Energy Security and Net Zero, Rt Hon Graham Stuart MP confirmed that they are now “allowing boiler sales that can be verified as being for installation in new building, not previously used or occupied to be excluded from a (boiler) manufacturer’s target calculation”…..and “that this exclusion would indeed include boilers sold for installation in new caravans and park homes”.

The media covered the so-called  ‘Boiler Tax’ in December 2023*, reporting that some manufacturers were having to raise the cost of new gas boilers by up to £120 in order to offset the financial costs of the Government’s heat pump rollout.  From 2028, the UK Government’s target is to install 600,000 heat pumps as an important part of reducing energy demand and a switch to more efficient heating appliances.  Under the new rules, designed to incentivise heat pump installations, the Government is introducing fines to companies who fall short of meeting the government targets. 

The NCC’s representations stressed the point that under the Clean Heat Market Mechanism, as verified boiler sales to UK caravan manufacturers are intended for new-build, factory-built units (caravans and park homes), it would seem inappropriate for these boiler manufacturers to pre-load a levy fine of £100-£125 onto every boiler's cost starting January 2024, increasing the overall costs in real terms of around £300.

The NCC is contacting relevant boiler manufacturers and suppliers to make them aware of this important exclusion.