Labour MP Patricia Ferguson has welcomed the Labour government’s removal of VAT from domestic electricity bills, highlighting support for Glasgow West households facing winter living costs.
The temporary cut took effect on 1 October and applies to qualifying electricity supplies across Scotland, England and Wales until 31 March 2027.
“This [Labour] Government is delivering for Glasgow West,” the Labour MP wrote.
‘Applied automatically by your energy supplier’
Ferguson said the measure would help households with the cost of living this winter, adding: “The reduction will be applied automatically by your energy supplier.”
HMRC guidance confirms that qualifying electricity previously charged at the reduced VAT rate of 5% will carry a zero rate during the six-month period. The government first announced the measure in July, meaning households are now benefiting from the implementation of that commitment.
Energy supplier Home Energy confirms that the change covers both electricity unit rates and standing charges, with no application or tariff switch required for its domestic customers.
Electricity only
The relief applies specifically to electricity. VAT on other domestic fuels, including gas, remains unchanged, while qualifying electricity supplies in Northern Ireland continue to carry the 5% rate.
The amount each household benefits will depend on its electricity consumption and tariff. The VAT reduction lowers costs compared with what they would otherwise have been, although other changes in energy prices can still affect the overall bill.
Ferguson’s message draws residents’ attention to support already taking effect: a temporary reduction applied through electricity bills throughout the winter.
