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By aiding the electrification of heat, this VAT cut will help to improve energy security and resilience here in the UK, whilst unlocking significant energy savings in homes at a time when costs are spiralling. However, more must be done to boost the heat pump market, including the removal of environmental levies and further upfront support such as low interest loans. Finally, we must remember that whilst the green tax cut will provide many households with the incentive to install a heat pump, they will not be the answer for low-income households who will still require full grants. Whilst this decision alone will not be enough to enable all households to access technologies such as heat pumps, we are confident that it will play a role in helping to accelerate the switch to low carbon heat. But we must remember that more steps still need to be taken to support the rollout of heat pumps, including the removal of illogical environmental levies on electricity.
