THE over-60s will be able to claim £500 off a new boiler under a scrappage scheme announced today.

Up to 5,000 homes with the least efficient G-rated boilers will be entitled to a discount if they upgrade.

Eligible applicants will receive a voucher towards the cost of a new system.

The Conservatives welcomed the announcement, but criticised the delay in introducing a scheme which has been running in England since early January.

The Welsh scheme is aimed at the over-60s as they are more likely to be struggling with heating bills.

The Assembly Government said it wanted the £2.5 million scrappage scheme to tackle fuel poverty, defined as when more than a 10th of household income is spent on energy bills.

Environment Minister Jane Davidson said: "We have allocated £2.5 million to the boiler scrappage scheme for 2010/11 and expect up to 5,000 Welsh households to benefit from a significant improvement in the energy performance of their heating systems as a result.

"This additional funding underlines the Assembly Government's ongoing commitment to tackling fuel poverty and reducing greenhouse gas emissions in Wales."

She said another £1.4 million would be spent on the Home Energy Efficiency Scheme in the next financial year. So far it has helped with the cost of installing insulation and heating in 100,000 homes.

Swapping a G-rated boiler for an A-rated replacement could save up to £235 a year and cut greenhouse gas emissions, the Assembly Government said.

The average cost of a boiler and its installation is around £2,500, according to the heating industry.

Details of how to apply are being finalised and will be announced shortly. There will not be a waiting list before the scheme opens on April 1.

Shadow environment minister Angela Burns said: "While I welcome this announcement, the introduction of the scheme in Wales will come three months after households in England were able to benefit from a similar initiative.

"Any moves to tackle fuel poverty are, of course, welcome. However, I remain to be convinced as to how effective this scheme will be in helping the many thousands of people struggling to pay their bills.

"The Welsh scheme is also far more narrowly focused than that in England, meaning far fewer people will qualify."

Liz Withers, principal policy advocate for Consumer Focus Wales, said: "We're disappointed that people with long-term health conditions, young families and disabled people who suffer fuel poverty will not be helped by this boiler scrappage scheme.

"While many elderly people find themselves in fuel poverty, there are other significant groups who will not benefit from this announcement.

"There is also a big question mark over whether a £500 voucher – which will still leave households facing a bill amounting to hundreds of pounds – will make boiler scrappage affordable to those in greatest need."

She added: "While we welcome the fact that the money is being spent on fuel poverty – we are disappointed that it will not be more directly targeted at those who need it most."