RURAL households are now eligible to save money under the government’s boiler scrappage scheme.

The scheme to upgrade household boilers to cut carbon and help consumers save money on fuel bills was launched on Tuesday (6 January).

Up to 125,000 households in England with working “G-rated” boilers - the least efficient - will be able to join the initiative.

Households taking part could see their fuel bills cut by at least 15% a year.

They stand to save £400 off the price of a new “A-rated” boiler or a renewable heating system such as a biomass boiler.

Prime Minister Gordon Brown said: “Today’s announcement will slash household energy bills and carbon emissions while providing an important boost for the British heating industry.”

Following lobbying by rural organisations, the scheme is now available to rural households with LPG and oil fired boilers.

The Commission for Rural Communities said: “We have been highlighting the needs of the 36% of rural households without a mains gas connection to government.”

The scheme is being managed by the Energy Saving Trust.

It estimates that upgrading a G-rated boiler to an A-rated one can save householders £235 a year from their heating bill.

Improving housing energy efficiency and tackling fuel poverty is a key issue for rural areas.

This is due to the high number of solid wall homes in the countryside, as well as those without mains gas.

More than half the homes in sparse rural areas and one quarter of those in villages have poor energy efficiency ratings.

This compares to just 8% in urban areas.

The commission is working with the Rural Services Network to identify solutions through its Hands Up to Tackling Rural Fuel Poverty project.

Replacing 125,000 of the least efficient boilers could cut about 140,000 tonnes of CO2 a year - the equivalent of taking 45,000 cars off the road.

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