The new Prime Minister has taken immediate action to take VAT off energy bills from 1st October and give breathing space on the cost of living.
Taking 5% VAT off domestic electricity bills will give everyone in Britain some help with their electricity bills, and is expected to knock £45 off the annual energy price cap.
For too long, costs for families have grown and grown with no end in sight. That is why the government is acting today ahead of the Ofgem price cap announcement next month.
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 bringdown inflation while supporting households in every postcode.”