Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether he plans to provide funding for thermal storage in homes where it is difficult to install a traditional hot water cylinder.

The Government recognises that thermal storage can be advantageous, because of its smaller physical size, for properties that may struggle to install a traditional hot water cylinder. If installed at the same time as a heat pump, the installation of thermal storage will be zero rated for VAT purposes.

The Boiler Upgrade Scheme does not fund thermal storage because we are directing funding at heat pumps and in limited circumstances biomass boilers. However, we will keep our policy under review as further evidence emerges. In addition, Government is funding innovation in thermal storage through its energy research programmes.