As part of his pre-budget report, Chancellor Alistair Darling announced a new £50 million boiler scrappage scheme aimed at encouraging homes with inefficient boilers to upgrade to the latest models, saving users money and helping with Britain's targets for reducing emissions.

Announcing the scheme, Mr Darling said "Building on our successful car scrappage scheme, I will help up to 125,000 homes replace the most inefficient boilers with new models." Each inefficient boiler is estimated to add over £200 to household bills and one tonne of carbon to the atmosphere a year, the Chancellor added.

Exact details of the scheme, which will benefit only those in England, and how the processes will work have yet to be worked out, although consultation with the boiler producing industry are taking place. However, the Chancellor did add that as the scheme is based on the successful car scrappage scheme implemented earlier this year, it is hoped that claiming the incentive would be handled by the retailer.

A Treasury spokesman said: "Households in England will be able to claim up to £400 if they replace an inefficient boiler – rated G or worse – with an energy-efficient one or with another renewable technology."

While in the past, the cost of a new boiler and then installation on top have been prohibitive, it is hoped that the incentives of the new scheme will help encourage those who might previously have spent their money elsewhere into both contributing to reducing Britain's carbon footprint, and more importantly for the consumer, creating a very tangible saving each year thought to be around £235 on average.

With energy providers such as NPower already offering further incentives, a further £400 off when replacing and having a new boiler fitted with them, it is certainly a good time to consider doing your bit for the environment, and for your wallet by upgrading.