Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of making replacement radiators and other pipework for heat pump systems eligible for zero rated VAT.

The Chancellor announced at Spring Statement 2022 that the VAT relief for the installation of energy saving materials (ESMs) will be expanded in Great Britain.

From 1 April 2022, complex eligibility conditions to access the relief will be removed, and wind and water turbines will be reinstated as qualifying materials. Qualifying installations will also benefit from a VAT zero-rate until April 2027. Overall, this represents an additional £280 million of support for investment in ESMs over the next 5 years.

This will support the uptake of products that are used to increase the energy efficiency and decarbonisation of residential accommodation. These improvements are key to reducing gas dependency and household bills and are also a vital part of the UK’s transition to Net Zero.

Where the installation of new radiators and pipes are ancillary to the installation of a heat pump, these are eligible for the zero rate as part of a single supply of energy saving materials. Pipes and radiators have not been added to the list of qualifying materials themselves, and therefore will continue to be standard rated when installed as a standalone product.