by business editor Trevor Sturgess

Retailers have called on the Government to introduce a car scrappage-style incentive scheme for old washing machines, freezers and fridges.

The British Retail Consoritum says replacing the UK’s estimated 15 million white goods over 10 years old would cut down harmful CO2 emissions and reduce household bills.

It is urging Chancellor of the Exchequer Alistair Darling to announce such a scheme in this autumn’s Pre-Budget Report. Apart from scrappage incentives, it wants him to remove value added tax from energy-efficient appliances.

The BRC claims the idea would also support retail jobs, create new ones and revive struggling high streets.

The BRC has told the Chancellor: "A clear signal should be given to households of the benefits of a switch to the most energy efficient products...this could be kick-started through time-limited scrappage schemes for those buying ‘Energy Saving Recommended’ products."

The BRC claims that CO2 emissions could be cut by 1.3 million tonnes a year by using energy-efficient products, almost one per cent of domestic emissions. It estimates the reform would cost the Treasury around £507million a year in lost VAT receipts.

Mother-of-two Helen O’Connor, from Tunbridge Wells, said: "Buying a newer up-to-date model washing machine or fridge freezer can save enormously on electricity bills because the new types are so much more efficient.

"Some new fridge freezers even have an alarm to alert you when the door has been left ajar, for example. Limping on with old appliances can be an expensive false economy.

"This incentive will be a great way for retailers to get customers into their stores."

BRC director-general Stephen Robertson said: "A modern, efficient fridge-freezer uses less than half the energy of a 1995 model. Over its lifetime it can pay for itself but having to find the cost up front puts customers off upgrading - particularly in a recession.

"Removing VAT and exploring the possibility of a scrappage scheme would do a lot to get old energy and water-squandering appliances out of people’s homes."