Helping households improve energy efficiency and keep energy costs down
The Chancellor of the Exchequer, Rishi Sunak, delivered the Spring 2022 Forecast Statement to Parliament on Wednesday 23 March 2022. With house prices increasing and high demand from buyers remaining steady, the Chancellor steered clear of focusing too much on the housing sector in his Spring Statement. Rising inflation and increasing gas and electricity bills mean that many households across the UK are facing significant financial pressures.
The cost of living crisis dominated the Chancellor’s Spring Statement this year. To help households improve energy efficiency and keep energy costs down – as well as supporting the UK’s long-term net zero ambitions – the government is extending the VAT relief available for the installation of energy saving materials (ESMs).
The government will include additional technologies and remove the complex eligibility conditions that restricted the application of the relief. Relief will be further increased by introducing a time-limited zero rate for the installation of ESMs. The Chancellor said, ‘A typical family having roof-top solar panels installed will save more than £1,000 in total on installation, and then £300 annually on their energy bills.’ The changes take effect from April 2022. The Northern Ireland Executive will receive a Barnett share of the value of this relief until it can be introduced UK-wide.