At Spring Statement 2022, the Chancellor announced the expansion of the VAT relief on the installation of energy saving materials (ESMs) to residential accommodation in Great Britain.<\/p>
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The changes reverse restrictions introduced in 2019 following a Court of Justice of the European Union ruling, including re-instating wind and water turbines as qualifying materials, and removing complex eligibility conditions. Further to this, qualifying installations, including ground and air source heat pumps, will 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.<\/p>
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The changes to the VAT treatment of ESMs announced at Spring Statement 2022 were brought in at pace to immediately support households to improve the energy efficiency of their homes, bolstering the UK\u2019s energy security and contributing to our transition to Net-Zero.<\/p>
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In order to accelerate take-up and prevent loss of investment, the changes were brought in from 1 April 2022, 10 days after Spring Statement 2022. A longer delay between announcement and implementation risked having an adverse effect on the ESMs market, i.e. in anticipation of future relief business and consumers may have otherwise delayed entering into a contract thereby causing a temporary stalling effect in the market, and risking supply bottlenecks further down the line.<\/p>
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Evaluating the case for adding new technologies to the relief would require careful consideration and consultation to ensure changes represent value for money and would not have unintended behavioural effects, a process which would have delayed making changes to immediately benefit the public.<\/p>
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The Government keeps all taxes under review and continues to welcome representations on how the tax system can be improved. It is important that Government policy takes into account the pace of technological development in the ESMs market and the changing policy context since this particular relief was first introduced. That said, requests for further changes should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum. Such costs would have to be balanced by increased taxes elsewhere, increased borrowing, or reductions in Government spending.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4517", "label" : {"_value" : "Biography information for Lucy Frazer"} } , "answeringMemberConstituency" : {"_value" : "South East Cambridgeshire"} , "answeringMemberPrinted" : {"_value" : "Lucy Frazer"} , "dateOfAnswer" : {"_value" : "2022-05-18", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-05-18T14:52:14.15Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-05-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Energy: Housing"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, whether he plans to remove VAT on (a) heat pump radiators and (b) other home upgrade products that use energy savings materials.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4847", "label" : {"_value" : "Biography information for Siobhan Baillie"} } , "tablingMemberConstituency" : {"_value" : "Stroud"} , "tablingMemberPrinted" : [{"_value" : "Siobhan Baillie"} ], "uin" : "1005"} , {"_about" : "http://data.parliament.uk/resources/1462106", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1462106/answer", "answerText" : {"_value" : "
At Spring Statement 2022, the Chancellor announced the expansion of the VAT relief for the installation of energy saving materials (ESMs) in Great Britain from 1 April 2022.<\/p>
<\/p>
This relief will continue to apply to the installation of ESMs, rather than the direct purchase of the materials themselves. However, complex eligibility conditions, introduced in 2019 following an EU Court of Justice ruling, have been removed.<\/p>
<\/p>
Further to this, wind and water turbines have been reinstated as materials which qualify for the relief, and all 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, building on the £9.7 billion that the Government has committed to invest since March 2021 to increase the energy efficiency and decarbonisation of our homes and buildings.<\/p>
<\/p>
Targeting the VAT relief on professional installations ensures that the Government supports best practice in the choice and installation of ESMs. Going further would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT raised around £130 billion in 2019-20 and helps to fund key spending priorities. As you will know, any reduction in tax paid is a reduction in the money available to support important public services, including the NHS and policing.<\/p>
<\/p>
Given this, although the Government keeps all taxes under review, there are no plans to further extend the VAT relief to direct purchases of ESMs.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4517", "label" : {"_value" : "Biography information for Lucy Frazer"} } , "answeringMemberConstituency" : {"_value" : "South East Cambridgeshire"} , "answeringMemberPrinted" : {"_value" : "Lucy Frazer"} , "dateOfAnswer" : {"_value" : "2022-05-16", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2022-05-16T16:40:50.473Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2022-05-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Energy: Housing"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, whether people who purchase energy saving products not through an installer will be covered by the VAT reduction.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4847", "label" : {"_value" : "Biography information for Siobhan Baillie"} } , "tablingMemberConstituency" : {"_value" : "Stroud"} , "tablingMemberPrinted" : [{"_value" : "Siobhan Baillie"} ], "uin" : "1006"} , {"_about" : "http://data.parliament.uk/resources/1462193", "AnsweringBody" : [{"_value" : "Department for Education"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1462193/answer", "answerText" : {"_value" : "
The department does not hold information on the numbers of all care leavers in further education. The department does hold and publish information on the activities of care leavers aged 17 to 21 who had been looked after by local authorities in England. This includes information on care leavers in education but not specifically further education. The latest statistics are available at: https://explore-education-statistics.service.gov.uk/data-tables/fast-track/607634ac-0f37-4ffc-8cdc-576d0bb9b16b<\/a>.<\/p> The department does not hold information centrally on all looked-after children who are studying at KS5 or who are in further education. The department does hold and publish information on pupils who were at the end of key stage 4 in 2018/2019 and reports on their destinations in the following academic year (2019/2020). The figures show, in academic year 2019/20, 5,450 children looked after were in a sustained education destination in the year following the end of key stage 4. Of these, 2,910 were in further education, 860 were in a school sixth form or sixth form college and 1,240 were in some other form of education. Further information is available here: https://explore-education-statistics.service.gov.uk/data-tables/permalink/d583af1d-ad7d-4f1f-990b-2b27586d6c69<\/a>.<\/p> The latest information on attainment for looked after children is published here: https://explore-education-statistics.service.gov.uk/find-statistics/outcomes-for-children-in-need-including-children-looked-after-by-local-authorities-in-england<\/a>.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4423", "label" : {"_value" : "Biography information for Will Quince"}
}
, "answeringMemberConstituency" : {"_value" : "Colchester"}
, "answeringMemberPrinted" : {"_value" : "Will Quince"}
, "dateOfAnswer" : {"_value" : "2022-05-18", "_datatype" : "dateTime"}
, "groupedQuestionUIN" : {"_value" : "1009"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2022-05-18T16:08:31.173Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "60"}
, "answeringDeptShortName" : {"_value" : "Education"}
, "answeringDeptSortName" : {"_value" : "Education"}
, "date" : {"_value" : "2022-05-11", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Further Education: Care Leavers and Children in Care"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Education, how many (a) looked after children and (b) care leavers went onto further education for the latest available year.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4847", "label" : {"_value" : "Biography information for Siobhan Baillie"}
}
, "tablingMemberConstituency" : {"_value" : "Stroud"}
, "tablingMemberPrinted" : [{"_value" : "Siobhan Baillie"}
], "uin" : "1007"}
, {"_about" : "http://data.parliament.uk/resources/1462195", "AnsweringBody" : [{"_value" : "Department for Education"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1462195/answer", "answerText" : {"_value" : " The attached table contains the department\u2019s analysis of the Higher Education Statistics Agency (HESA) student record showing the number of care leavers who entered courses at English higher education providers in academic year 2020/21. Coverage refers to entrants domiciled in England prior to study and care leavers are defined as codes 01 and 04 in the HESA care leaver collection documentation. Further information can be found here: https://www.hesa.ac.uk/collection/c20051/a/careleaver<\/a>.<\/p> This shows that in academic year 2020/21, there were 4,290 care leavers who entered courses at English higher education providers in academic year 2020/21. Of these, 580 entered courses across 27 high tariff providers. A full breakdown by institution can be found in the attachment.<\/p> <\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4530", "label" : {"_value" : "Biography information for Michelle Donelan"}
}
, "answeringMemberConstituency" : {"_value" : "Chippenham"}
, "answeringMemberPrinted" : {"_value" : "Michelle Donelan"}
, "attachment" : {"_about" : "http://data.parliament.uk/resources/1462195/answer/attachment/1", "fileName" : {"_value" : "1008_table_showing_ number of care leavers who entered courses at English higher education providers in academic year 2020-21.pdf"}
, "title" : "1008_table"}
, "dateOfAnswer" : {"_value" : "2022-05-16", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2022-05-16T14:47:16.713Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "60"}
, "answeringDeptShortName" : {"_value" : "Education"}
, "answeringDeptSortName" : {"_value" : "Education"}
, "date" : {"_value" : "2022-05-11", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Higher Education: Care Leavers"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Education, how many care leavers were accepted onto courses at high tariff Higher Education providers broken down by individual institution.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4847", "label" : {"_value" : "Biography information for Siobhan Baillie"}
}
, "tablingMemberConstituency" : {"_value" : "Stroud"}
, "tablingMemberPrinted" : [{"_value" : "Siobhan Baillie"}
], "uin" : "1008"}
, {"_about" : "http://data.parliament.uk/resources/1462199", "AnsweringBody" : [{"_value" : "Department for Education"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1462199/answer", "answerText" : {"_value" : " The department does not hold information on the numbers of all care leavers in further education. The department does hold and publish information on the activities of care leavers aged 17 to 21 who had been looked after by local authorities in England. This includes information on care leavers in education but not specifically further education. The latest statistics are available at: https://explore-education-statistics.service.gov.uk/data-tables/fast-track/607634ac-0f37-4ffc-8cdc-576d0bb9b16b<\/a>.<\/p> The department does not hold information centrally on all looked-after children who are studying at KS5 or who are in further education. The department does hold and publish information on pupils who were at the end of key stage 4 in 2018/2019 and reports on their destinations in the following academic year (2019/2020). The figures show, in academic year 2019/20, 5,450 children looked after were in a sustained education destination in the year following the end of key stage 4. Of these, 2,910 were in further education, 860 were in a school sixth form or sixth form college and 1,240 were in some other form of education. Further information is available here: https://explore-education-statistics.service.gov.uk/data-tables/permalink/d583af1d-ad7d-4f1f-990b-2b27586d6c69<\/a>.<\/p>