Households will pay no tax on home efficiency improvements, the Chancellor has announced.
For the next 5 years, families installing solar panels, heat pumps and more home insulation will pay 0% VAT, Rishi Sunak said.
The government will also reverse the EU's decision to take wind and water turbines out of scope and zero rate them.
Families will save £1,000 in tax installing solar panels, Mr Sunak claimed.
It comes amid an escalating energy bill crisis that will see the average household paying almost £2,000 a year for gas and electricity by the end of the year.
Households were hoping for an extension of the £200 support scheme, or an increase in the repayment period from five years to ten in Wednesday's Spring Statement.
Are today's announcements enough to support struggling families? Let us know: mirror.money.saving@mirror.co.uk
Instead, Rishi Sunak has said he is doubling the Household Support Fund from £500million to £1billion to help vulnerable households.
The Household Support Fund will be distributed by councils across England to assist the community through small grants to meet daily necessities like food, clothing and utilities.
The Department for Work and Pensions (DWP) said the Barnett formula will apply in the usual way to additional funding in England. Chancellor Rishi Sunak announced the support fund will be doubled “to help the most vulnerable households with rising costs”.
He said that local authorities will receive the extra funding from April.
Previously, Therese Coffey, Work and Pensions Secretary, said over the last year the government has “helped millions of people provide for their families.”
In a statement, she explained: “Many are now back on their feet but we know that some may still need further support,
“Our targeted Household Support Fund is here to help those vulnerable households with essential costs as we push through the last stages of our recovery from the pandemic.”
The scheme was first announced on 30 September 2021, and the funding was made available to local authorities in October 2021.
The Government website states those who are in need of the support this fund can offer, should contact their local council, who will help them access the fund.
The announcement comes as Britain sees a soar in the cost of living, as energy prices, food prices and broadband prices rising.
