Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential merits of introducing (a) VAT reductions or grants and (b) other financial incentives to encourage the adoption of heat battery technology in UK households as part of the Government’s Warm Homes Plan.

VAT treatment is the responsibility of the Treasury, and they keep all taxes under review. Installations of qualifying energy-saving materials (ESMs) can benefit from zero rated VAT, until April 2027, and the Department continues to engage with the Treasury and HMRC regarding ESMs.

Heat batteries are a promising technology but they are also less efficient than heat pumps and will use more energy to meet the same heating demand. We will continue to review our position on heat batteries in Government grant programmes as the supporting evidence base develops, through studies like the Homes for Net Zero Trial.