VAT Cut on Household Electricity
We've just heard the government will scrap VAT on electricity bills from 1 October. It's a quick move from the new Prime Minister to ease the cost-of-living pressure many of us are feeling right now.
British Gas has confirmed it will pass the reduction straight through to customers. Group Chief Executive Chris O'Shea said:
"It's encouraging to see the new Prime Minister move quickly to help households with the cost of energy. Any reduction in bills will be welcome news for customers and it's good to see affordability being made a priority from day one. We will, of course, be passing this reduction on to our customers.
"We've been clear for a long time that help should be targeted at those who most need it. We continue to believe that the most sustainable solution would be a targeted social tariff to support vulnerable households, and we look forward to helping the government deliver that at the earliest possible opportunity.”
What This Means for You
- Your electricity bill should drop by around 5% from October.
- The change applies to standard and fixed tariffs alike.
- We still think the best long-term fix is proper targeted support for those who need it most.
If you're on a variable rate or your deal is ending soon, now's a good time to compare energy tariffs and see if you can lock in even lower costs. For official details check the latest updates from Ofgem.
