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Written question asked by Mike Reader (Labour) on Tuesday, 9 June 2026, in the House of Commons. It was due for an answer on Thursday, 11 June 2026. It was answered by Dan Tomlinson (Labour) on Wednesday, 17 June 2026 on behalf of the Treasury.

Heating: VAT

Question

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of extending 0% VAT relief to clean heating technologies, including heat batteries.

Answer

The Government is supporting heat batteries by including them in the Boiler Upgrade Scheme, with a £2,500 grant to support homes that are not suitable for heat pumps. Heat batteries will become eligible once new product and installation standards are in place, ensuring quality and consumer protection and we expect applications to open in 2026/27, once standards, regulations and guidance have been completed.

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.

The Government assesses whether to add ESMs to this relief by evaluating them against the following tests: the primary purpose of the technology must be to improve energy efficiency and reduce carbon emissions; relieving the technology of VAT must be a cost effective lever for encouraging installations; and it must be practical for business to operate and for HMRC to administer.

Secondary information

Type
Written question
Reference
8388
Session
2026-27
Grouped for answer
Yes
Subjects
Heating Tax allowances VAT Clean energy
Link
View this Written question on www.parliament.uk