Households with inefficient, old boilers (G-rated) can get £400 off the price of a new A-rated boiler thanks to the new boiler scrappage scheme launched yesterday by Gordon Brown and Ed Miliband. You can also put the money towards a renewable heating system such as a biomass boiler or heat pump.

A-rated boilers are 90 per cent more efficient than G-rated ones, so the change should lead to significant reductions in heating bills - government estimates say between £200 and £235 a year per household. In addition there will be less carbon pollution. Up to 125,000 households are expected to benefit from the scheme which should save about 140,000 tonnes of CO2 emissions a year.

If you are under 60, you are eligible for the discount if the boiler is the main one used to heat your home, and it is in working order. If you are over 60 years old you can benefit even if the boiler you are scrapping does not work.

Five steps to getting your new boiler

1. Check that your boiler is G-rated. If it's got a permanent pilot light it is likely to be, as are gas- and oil-fired boilers over 15 years old. To make sure, visit the boiler scrappage scheme website or phone the advice line on 0800 512 012.

2. Get a quotation from one or more installers for your new boiler or heat pump. Some of the energy companies are using the scheme to drum up business. British Gas  is topping up the government's £400 with a £400 incentive of its own. Npower is offering a free five year warranty on some boilers. But small, local firms may still be better value for money. Expect it to cost between £2,000 and £3,000 including installation.

3. Make sure your chosen installer has the relevant qualification as you will need to supply their Gas Safe, OFTEC, Hetas or MCS registration number when you apply for the scrappage voucher.

4. Register on the Energy Saving Trust website (there's a form at the end of the eligibility check). You will receive the voucher about 10 days after you register, and it will be valid for 12 weeks from the date it is issued.

5. Get your installer to put the new boiler in. You will have to pay for the installation, and will be able to claim back the £400 by sending the voucher and invoice to the Energy Saving Trust. They will send the money within 25 days of receiving your voucher.

6. Sit back and enjoy your cheaper heating bills.

Photo by butkaj

If you have a question about anything in the above blog, please ask it in the comments section below.