Government announces VAT cut on household electricity bills from October

Local TV

The government says removing VAT from household electricity will reduce bills for millions of homes. Opposition parties are questioning how the measure will be funded beyond the current financial year.

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00:00Households could see electricity bills fall after the government announced it will remove

00:05VAT from domestic electricity from 1 October. Ministers say a typical home could save around

00:12£45 a year, describing the change as extra breathing space amid continuing cost of living

00:19pressures. The government says the measure will be funded by cancelling its planned digital

00:25ID programme. Opposition parties have questioned whether the funding is sustainable, arguing

00:31the tax cut is not fully financed. The reduction applies across England, Scotland and Wales,

00:37with equivalent funding planned for Northern Ireland under separate energy arrangements this

00:42financial year.

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