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Written question asked by Max Wilkinson (Liberal Democrat) on Monday, 29 June 2026, in the House of Commons. It was due for an answer on Wednesday, 1 July 2026. It was answered by Dan Tomlinson (Labour) on Tuesday, 7 July 2026 on behalf of the Treasury.

Energy: VAT

Question

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the VAT reduction for installing domestic energy saving-materials on the number of installations since 2024.

Answer

This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels, and batteries.

Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent. This support – worth over £1 billion – will aid households and charities in improving the energy efficiency of their buildings, help to reduce carbon emissions, and ultimately help us to reach our ambitious Net Zero by 2050 target.

The temporary zero rate of VAT for ESMs took effect on 1 April 2022. The scope of the zero rate was extended on 1 February 2024. On both occasions, the Government published Tax Information and Impact Notes detailing the expected impacts of these policy changes. These documents can be found at the following links:

The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 - GOV.UK

Extension of VAT energy-saving materials relief - GOV.UK

Secondary information

Type
Written question
Reference
13981
Session
2026-27
Transferred
Yes
Subjects
Conservation Energy Tax rates and bands VAT
Link
View this Written question on www.parliament.uk