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Andy Burnham Announces VAT Cut on Energy Bills 'From This Thursday' in Keynote Speech

Prime Minister Andy Burnham announced that VAT on domestic electricity bills will fall from 5% to 0% starting this Thursday, October 1, providing financial relief as winter approaches and energy costs rise.
This tax cut coincides with Ofgem raising the energy price cap to £1,723, with further price increases anticipated due to the ongoing US-Iran conflict pressuring global energy markets.
Officials estimate the £850 million measure will save the average household around £45 a year, funded by the Government's cancellation of the digital ID programme and departmental budget reprioritization.
Chancellor John Healey said the cut will give families "breathing room on bills and provide reassurance this winter," while the Government expects energy suppliers to pass savings directly to customers.
Ministers are reportedly considering expanding VAT relief to gas bills, which could reduce annual household energy costs by a further £40 alongside other tax rule changes taking effect October 1.

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