Chancellor of the Exchequer Darling also pledged that Britain would seek to secure a "global deal" at the "historic" UN climate talks that are currently taking place in Copenhagen.

Darling, presenting his taxation and spending plans in an eagerly-awaited budget report, unveiled a "new-for-old" scheme to replace ageing household boilers with more efficient models.

The boiler scheme, which aims to help 125,000 households by offering them 400 pounds (440 euros, 648 dollars) towards a new boiler, is similar to the government's successful vehicle scrappage scheme.

"We must all become more energy-efficient and cut emissions, as well as household bills," Darling told parliament on Wednesday.

Britons with wind turbines or solar panels who fed power back into the national grid would receive an average of 900 pounds tax-free per year from April, he added.

And 200 million pounds would be offered to a 75,000 households to make their homes energy efficient via measures such as roof insulation.

The chancellor also vowed more investment in low-carbon sectors like wind power, while the government will double its commitment to carbon capture and storage (CCS) schemes to help cut greenhouse gas emissions.

By 2018, Britain will support four new projects with CCS technology that captures polluting carbon emissions and stores them permanently underground.

"This will help to commercialise this important technology in the fight to tackle climate change," the finance minister added.

"The demonstration programme will be funded through a levy on electricity suppliers."

Tackling climate change would help create "opportunities for new low-carbon industries" and result in high-skilled and well paid jobs, he said.

Turning to Copenhagen, Darling added that Britain was playing a crucial role in fighting the effects of global warming.

"The UK is playing a leading role on climate change, setting the agenda for the international negotiations and taking radical domestic action to promote low-carbon growth," Darling told lawmakers in the budget speech.

"The government is committed to an ambitious global deal at the UN negotiations in Copenhagen."

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