The Scottish Government has unveiled a £2m boiler scrappage scheme.

Up to 5,000 households in Scotland will receive £400 towards the cost of a new boiler, under the new boiler scrappage scheme.

Households with poor performing boilers which convert less than 70 per cent of fuel into heat, will qualify for cashback on a new energy saving model.

Upgrading to a greener boiler will help households reduce heating costs by about a quarter and save 190 pounds a year on fuel bills.

From Monday 24 May households will be able to apply online or over the phone through the Scottish Government's Energy Saving Scotland advice network.

Replacing 5,000 boilers will also save around 5,000 tonnes of carbon dioxide per year - the equivalent to taking 1,700 cars of Scotland's roads, heating the water for 7 million baths or heating 1,300 Scottish homes for a year.

Announcing details of the scheme in Glasgow today at a conference on buildings and energy efficiency, Housing and Communities Minister Alex Neil said: "Scotland is seen around the world as a champion for low-carbon living. A vital part of this is helping people to live in greener homes which cost less to run.

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"Through the boiler scrappage scheme we will help people replace rickety old boilers for new energy saving models and importantly, put money back in the pockets of householders.

"At the same time we are providing an economic stimulus for the heating industry, supporting jobs and helping it get through this financially difficult time."

Scottish and Northern Ireland Plumbing Employers Federation Director Robert Burgon said: "The Scottish boiler scrappage scheme will be a great opportunity for many households to upgrade their inefficient heating systems which will be costing them many hundreds of pounds each year in wasted fuel costs.

"Installing a new system will not only help the environment it will also help save money on their heating bills.

"Like many other industries the plumbing and heating sector has been badly hit by the recession and the scheme will prove a boost to many of our businesses."

Elizabeth Leighton, Senior Policy Officer at WWF Scotland said: "We welcome the introduction of the boiler scrappage scheme.

"Home energy use accounts for nearly one-third of Scotland's carbon emissions, so it is essential that homeowners are given every opportunity to make their homes more energy efficient if Scotland is to play its part in tackling the climate change.

"At the same time it will create jobs and contribute to efforts to eradicate fuel poverty. We believe this scrappage scheme must be seen as part of an overall effort to make all of Scotland's homes low carbon - warm and healthy - by 2020."

(GK/BMcC)