FMB urges Budget help for home improvements: what it means for costs

Nothing changes for your costs today. The Federation of Master Builders (FMB) wants the Chancellor to back home improvements in tomorrow's Budget, but it has only made a request so far. If you are planning energy-saving work, the support already in place is what counts.

What the FMB is asking for

According to The Intermediary, the FMB wants the Chancellor to support home improvements in the Budget on Wednesday 28 October. It cites research with the HomeOwners Alliance. That research estimates that homeowners' lack of trust in builders costs the economy £11.2bn a year.

The same report gives these findings:

• 19% of homeowners have put work off because they could not find a builder they trusted.
• Among homeowners doing building work, 27% were upgrading electrics, plumbing or heating to keep their homes safe.
• Separate FMB research suggests 49% would try structural work themselves rather than hire a professional.

The FMB's wish list, as reported, includes:

• lower VAT on energy-efficiency improvements
• long-term incentives for homeowners
• a stable Warm Homes Plan
• mandatory licensing for domestic building companies
• funding for apprenticeships and a UK-wide network of Build Academies
• stronger local authority planning teams

The FMB's chief executive, Brian Berry, said many of these measures come "at little cost to the Treasury". These are the FMB's views and estimates, not government policy.

What already applies

We can only point to rules that are in force today:

• 0% VAT applies to installing energy-saving materials, including heat pumps, insulation, solar panels and batteries, until 31 March 2027.
• The Boiler Upgrade Scheme takes £7,500 off an air source or ground source heat pump in England and Wales. The installer must be MCS certified. In Scotland, Home Energy Scotland offers a grant of up to £7,500, plus an optional £7,500 interest-free loan.
• The Warm Homes Plan, published in January 2026, commits £15bn to 2030. That includes grants for low-income households and low- or zero-interest loans, which are being phased in.

Our figures include 20% VAT except where 0% applies. If the Budget changes any of this, we will update our guides.

What it means for project costs

Most of the work homeowners are putting off is energy-related, so these are the costs to watch.

Heat pumps. A typical air source heat pump installation currently comes to £12,900, with a usual range of £10,000 – £16,700. The £7,500 grant is deducted from the installer's price. Our [heat pump cost guide](Air source heat pump) shows how size and tier change the bill.

External wall insulation. This is one of the largest energy-saving jobs. A mid-range scheme typically costs £26,000, with a range of £20,300 – £33,800. The 0% VAT rate matters most on a job this size. Our [wall insulation guide](External wall insulation) covers the materials.

Solar panels. A typical 6 kWp system costs £12,500. Adding a 10 kWh battery brings it to £15,600, and the same VAT relief covers batteries. See our [solar panel guide](Solar panels).

Rewiring. This is the sort of safety work the FMB highlights. A typical house rewire costs £6,800, with a range of £5,300 – £8,850. Our [rewiring guide](House rewire) explains what moves the price. No VAT relief applies to it.

Boilers. A typical boiler replacement costs £2,800. Our [boiler cost guide](New boiler) has the options.

Why the trust point matters for your wallet

The FMB's argument is about confidence as much as money. A few rules help you check that a builder is competent, whatever the Budget brings:

• Gas work must be done by a Gas Safe registered engineer. It is illegal for anyone else to do it.
• In England and Wales, notifiable electrical work must be done by a registered electrician (Part P) or notified to building control.
• Replacement windows must meet building regulations. A FENSA or CERTASS registered installer can self-certify them.
• For a heat pump grant, the installer must be MCS certified.

Mandatory licensing for domestic builders is only a proposal. Until anything like it exists, you can still check registrations and compare quotes.

How we calculate, and how to check your quote

We build each estimate from labour hours multiplied by local rates, plus materials. We then check the result against market prices and real quotes. That is why our figures move when rules such as VAT change.

If a quote is well above or below the ranges here, try our "is my quote fair" tool. It compares your quote with our live figures. Ask every builder for an itemised price and proof of their registration before you sign.

What to watch in the Budget

If the Chancellor changes VAT on energy-efficiency work, extends support beyond March 2027 or adds detail to the Warm Homes Plan, it could change the cost of the projects above. Until then, plan on the rules as they stand. If you are close to the 31 March 2027 deadline, remember that the 0% rate is only guaranteed until that date.