Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her department has concluded its review into the Energy Saving Materials Framework; and when a decision is expected regarding the extension of its current sunset clause of March 2027.

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. This will be vital to making the UK more energy resilient and meeting our 2050 Net Zero commitment.

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.

In 2023, the Government ran a call for evidence on areas of reform that could help the relief meet its intended objectives more effectively, including the inclusion of additional technologies. The outcome can be found here: https://www.gov.uk/government/consultations/vat-energy-saving-materials-relief-improving-energy-efficiency-and-reducing-carbon-emissions/outcome/summary-of-responses