Connor Naismith MP has welcomed the government’s decision to take VAT off domestic electricity bills from 1 October, describing it as immediate action to give households breathing space on the cost of living.
Removing the 5% VAT charge on domestic electricity is expected to knock £45 off the annual energy price cap. The government says it is acting ahead of the next Ofgem price cap announcement, as families continue to face pressure from rising costs.
Mr Naismith, the Labour MP for Crewe & Nantwich, said:
“With external shocks continuing to drive up costs, I know families in Crewe & Nantwich are worried about the direction their bills are heading in with winter fast approaching.
“Taking VAT off electricity bills will help to support households ease financial pressures when they need it most.”
Prime Minister Andy Burnham said:
“Westminster has not been working for people for too long, with families struggling with the cost of living.
“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.
“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
Chancellor of the Exchequer John Healey MP said:
“For too long, too many people have struggled with the cost of living.
“Today’s energy tax cut will give families some breathing room on bills and provide some reassurance this winter.
“This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”
The government’s full statement is available on gov.uk.
