Government has introduced a temporary 0% VAT rate on qualifying electricity supplies from 1 October 2026 to 31 March 2027, replacing the previous 5% reduced rate for those supplies. There is no change to what qualifies for relief, only the VAT rate applied to qualifying electricity supplies. 

HMRC guidance specifically states that fuel and power supplied to 'homes providing care for the elderly or disabled' and similar residential establishments counts as domestic use, which is a qualifying use. 

Many care homes are either exempt or partially exempt for VAT and therefore cannot recover all VAT incurred. For those providers, the reduction from 5% to 0% is a direct operating cost saving.

Read the VAT Notice | GOV.UK