Brits are turning to energy efficient renovations to combat the energy crisis, with a new study from Cornerstone Tax showing that 36% of homeowners think that making their home more energy efficient is a priority for them in 2022.
However, the study also revealed that 23% of homeowners haven’t taken any steps to make their home more energy efficient, while 45% of homeowners have looked into making their home more energy efficient but found it too expensive without government support.
The study comes after the Chancellor, Rishi Sunak, announced that VAT on retrofit work will be cut to 0% from April for certain energy-saving home improvements such as heat pumps, insulation, and solar panels over the next five years as he citied green renovations as a viable option to combat rising energy costs for households.
Chancellor Rishi Sunak’s announcement in the Spring Statement follows years of industry pressure on the government to lower VAT on retrofit, which campaigners say will help to incentivise homeowners to make energy-efficient home improvements. Retrofitting a home helps to improve its energy efficiency through new technology or features; a process which differs from renovating a house or making home improvements designed to make a home more aesthetic.
The government is currently trying to meet its goal of having more than 600,000 heat pumps installed in UK homes each year by 2028. In the statement, Sunak also announced plans to increase the energy company obligation to £1bn per year for 2022-26 in a move which would cause suppliers to improve the energy efficiency of low-income homes.