PARLIAMENTARY WRITTEN QUESTION
Housing: Carbon Emissions (21 October 2024)

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of extending VAT relief to (a) heat batteries and (b) other new energy saving technologies that can help decarbonise homes when a heat pump cannot be installed.

Asked by:
Mike Reader (Labour)

The installation of qualifying energy-saving materials in residential accommodation and buildings used solely for a relevant charitable purpose benefits from a temporary VAT zero rate until March 2027.

Last year, a Call for Evidence (CfE) seeking views on additional technologies to potentially include within this relief was run. Heat batteries were one of the technologies put forwards by respondents. As set out in the Government response to the CfE, at that time, the Government was unable to identify sufficient independent data regarding the efficiency of heat batteries, making it difficult to assess the technology’s energy-saving properties objectively.

The Government currently has no plans to add further technologies to this VAT relief. Nevertheless, the Government keeps all taxes under review as part of the policy making process. Changes to the tax system are announced at fiscal events in the usual way.

Answered by:
James Murray (Labour)
29 October 2024