UK Care Homes

Cut energy bills. Without compromising care.

Running a care home is challenging enough without paying more than you need to for energy. We help independent operators review their energy contracts, identify potential savings opportunities and ensure they are paying the correct VAT rate where eligible. Free health check. No switching obligation.

CQC-awareVAT rate specialistsNo resident disruption24-48 hour turnaround

Get your free care home audit

Includes VAT and CCL eligibility check. No credit check.

60-70%
Share of care home energy spent on heating and hot water
0%
VAT on qualifying care home electricity until 31 March 2027 (gas: 5%)
4 yrs
Window for backdated VAT reclaim through HMRC
Where you're overpaying

Care can't be compromised. Costs can.

Your residents need warm rooms, hot water on demand, and clean linen every day. That's exactly why care homes get squeezed hardest on energy, but it's also why so much is recoverable. Six things we almost always find when auditing an independent UK care home.

1

VAT charged at 20% when a lower rate applies. The single most common, and biggest, error on care home energy bills. Up to 4 years of overpayment can be reclaimed.

2

Contracts auto-renewed at "deemed" rates that can be 2-3x the current market price. Most suppliers don't volunteer better terms unless asked.

3

Heating systems running outside occupied hours in common areas, lounges and dining rooms heated overnight when nobody's there.

4

Hot water cylinders cycling at temperatures higher than residents actually use, wasting gas on excess thermal storage.

5

Old commercial laundry equipment drawing significantly more electricity than equivalent modern machines on the same wash cycle.

6

Generic tariffs that don't match your actual 24/7 usage pattern. Care homes need supply structured around continuous load, not 9-to-5.

The big one

Your care home likely qualifies for 0% VAT on electricity. Not 20%.

Under HMRC VAT Notice 701/19, energy supplied to qualifying residential accommodation, which includes most UK care homes, qualifies for a lower VAT rate: 0% on qualifying electricity in Great Britain until 31 March 2027, and 5% on gas. Many care homes are paying 20% by default because their supplier never asked them to submit the VAT declaration form.

0%
VAT on qualifying care home electricity until 31 March 2027. Gas: 5%.

What we check on every care home audit:

1. Are you on the right VAT rate now? If you're paying 20% on energy that qualifies for a lower rate, you're overpaying every single month. We help you submit the VAT declaration to your supplier so future bills are corrected.

2. Can you reclaim historical overpayments? HMRC generally allows backdated VAT claims for up to 4 years. For an established care home, the recovery can run into tens of thousands of pounds. We help identify the period that qualifies and support the documentation.

3. Are you also exempt from CCL on the qualifying portion? Climate Change Levy doesn't apply to energy supplied at the reduced VAT rate. Same form, same evidence, but two reductions on every kWh.

Care home savings calculator

What could your home actually save?

Care homes average a 32% reduction on optimised bills through the partner network. That's before any VAT correction. Drag to your real monthly spend and see your number.

Your care home

Pre-set to UK care home industry averages.

£4,000
per month
Estimated annual saving on bill
£15,360
Range: £11,520 – £19,200
Current annual cost£48,000
After Switchgrid audit£32,640
+ potential VAT reclaim of £28,800 over 4 years if you qualify for 5% and have been paying 20%.
Get my exact figure →
Estimates based on Assured Energy partner network averages for UK care homes. VAT reclaim assumes 15% gap between 20% and 5% rates over 4 years, actual recovery depends on HMRC eligibility evidence.
Where the money goes

Care home energy, area by area.

Typical share of total energy spend for an independent UK care home, and the savings we usually find in each area.

Heating & hot water

Boilers, radiators, cylinders

25-40% savings typical
Commercial laundry

Washing machines, dryers

30-45% savings typical
Kitchen & catering

Ovens, hobs, dishwashers

30-50% savings typical
Lighting

Rooms, corridors, communal areas

50-70% savings typical
CQC compliance

This is an administrative change. Not a care change.

Energy procurement is an administrative function. CQC regulates care delivery, which is completely unaffected. We've worked with multiple CQC-registered providers through our partner network.

CQC

What changes in a switch, and what doesn't.

What changes: The company that bills you for your energy. The unit rate. The standing charge. Sometimes the VAT rate (if you're moved to the correct one).

What doesn't change: Your physical gas and electricity supply. Heating to resident rooms. Hot water availability. Cooking. Lighting. Any aspect of care delivery. There is no engineer visit, no equipment swap, no resident impact. Your CQC compliance is unaffected.

How we save you money

Four specific levers. Real numbers.

Every care home is different, but the same four areas often have the biggest impact on energy costs. Our consultants review each one as part of every energy audit.

VAT

VAT rate correction

If you qualify but are paying 20%, every future bill comes down: 0% VAT on qualifying electricity until 31 March 2027, and 5% on gas.

Lower VAT on every bill
↺

Historical VAT reclaim

HMRC allows 4 years of backdated VAT recovery for qualifying care homes that have been overpaying. We help with the paperwork.

Up to £30k+ recovery
📊

Unit rate renegotiation

We monitor wholesale prices and renegotiate before your contract auto-renews, care homes with continuous 24/7 load benefit most.

25-40% off unit rate
⚡

CCL exemption

Climate Change Levy doesn't apply to energy at the reduced VAT rate. Same paperwork as VAT correction, two reductions on every kWh.

+7-10% extra saving
Frequently asked

Care home operator questions.

Do care homes qualify for a lower VAT rate on energy?
Yes, under HMRC VAT Notice 701/19, energy supplied to qualifying residential accommodation (which includes most care homes) qualifies for a lower VAT rate. From 1 October 2026 to 31 March 2027, qualifying electricity in Great Britain is charged 0% VAT and qualifying gas 5%, not the standard 20%.
Many care homes are paying 20% by default because the supplier never asked. The qualifying supply must be evidenced by a VAT declaration form (sometimes called a "VAT certificate") submitted to your supplier.
Can I reclaim historical VAT overpayments?
Often yes. If you've been paying 20% when you qualified for 5%, HMRC generally allows backdated claims for up to 4 years. We help identify whether reclaim applies and support the documentation. The recovery can be tens of thousands of pounds for an established care home.
Will switching affect heating or hot water for residents?
No. The physical supply is completely untouched. Only the company billing you changes. Heating, hot water, lighting, laundry, all continue exactly as before.
Is this CQC compliant?
Yes. It's an administrative change to your energy account only. CQC doesn't regulate energy procurement. They regulate care delivery, which is unaffected. We've worked with multiple CQC-registered providers through our partner network.
My contract just rolled over. Am I stuck?
Often there's more flexibility than you'd think, particularly if proper renewal notice wasn't given by the supplier. We can also look at "blend and extend" tariffs that lower your rate within the existing contract term.
We operate multiple care homes. Can you handle that?
Yes. Multi-site groups often unlock significantly better rates through pooled negotiation. We work with groups from 2 to 50+ homes and handle the cross-site VAT and CCL paperwork.
Do you offer 100% renewable energy options?
Yes. Green tariffs are available across most of the supplier network and are increasingly competitive with standard tariffs.
Start here

See what your care home could save, and reclaim.

Takes 2 minutes. We come back to you within 24-48 hours with your audit, including a VAT eligibility check and reclaim potential estimate.

Get your free care home audit

Includes VAT and CCL eligibility check. No credit check.

VAT

VAT eligibility check included

We confirm whether you qualify for a lower VAT rate and estimate any backdated reclaim.

⏱

24-48 hour turnaround

Send a bill, get a plain-English breakdown within two working days.

£

No-win, no-fee

You pay nothing for the audit. We earn commission only if we save you money.

✓

Zero resident disruption

Supply untouched. Care continues exactly as before. CQC compliance unaffected.